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Stock Analysis, IPO, Mutual Funds, Bonds & More

Analyst Calls: Shree Cement, Mastek, L&T Tech, UltraTech Cement

Reliance Securities has upgraded recommendation on the Shree Cement stock to buy from hold with a target price of Rs 20,900.

ET Bureau|
Oct 23, 2019, 07.30 AM IST
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CLSA has maintained buy rating on UltraTech Cement and has raised target price to Rs 5500 from Rs 5400.
Good morning!

The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 10.50 points higher this morning, signalling a tepid start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

• Reliance Securities has upgraded recommendation on the Shree Cement stock to buy from hold with a target price of Rs 20,900. Shree Cement has been moving in the right direction in its pursuit to dominate the markets by adding capacity at regular intervals, which will aid the company in growing its market share with strong profitability without much stress on balance sheet, according to brokerage. Hence, its premium multiple is expected to sustain, going forward which can be supported by thin liquidity and meagre non institutional holdings, it added. The stock gained 4.5 per cent to Rs 19,501 on Tuesday.

• Centrum Broking has retained its buy rating on Mastek with a target price of Rs 535 citing well navigated on the cost front despite the huge challenges. EPS estimates are trimmed modestly by 2.5/4per cent for FY20/FY21E. Mastek has 11.2 per cent stake in Majesco USA which it plans to monetize and hence, strong balance sheet and cheap valuations offer favourable risk return, said the brokerage.The stock rose 1.52 per cent to Rs 347 on Tuesday.


• Edelweiss has maintained buy rating on L&T Technology Services and revised target price to Rs 1801 from Rs 1821 earlier. While outlook on revenue growth in the ER&D space remains marred by uncertainty, demand in the ER&D segment has potential to revive strongly, post which the company should be in pole position to realise its growth potential, said Edelweiss. The stock ended down 10.4per cent at Rs 1472.60 on Tuesday.

• Nomura has a neutral rating on AU Small Finance Bank with a target price of Rs 590. The bank's second quarter core operating profit was over 15per cent ahead of expectation with 30 basis points sequential improvement in spreads, AUM growth of 38per cent year-on-year, lower opex growth of 21per cent year-on-year and stable asset quality. Growth pressure in the vehicle book should continue, given continued weakness OEM volumes, said Nomura. The stock ended up 5.2per cent at Rs 688.40 on Tuesday.

• CLSA has maintained buy rating on UltraTech Cement and has raised target price to Rs 5500 from Rs 5400. Ultra-Tech’s second quarter results, while complex to analyse due to the Century Textiles (Century) merger, was ahead of estimates led by better realisations and costs, driving 29per cent Ebitda growth, said CLSA. Management targets to bring debt-to-Ebitda below 2 times by March 2020 which should happen, and it is looking to monetise non-core assets, the brokerage said. The stock ended down 1per cent at Rs 4250.30
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