Analyst Calls: Vodafone Idea, Bajaj Finance, PI Industries, V-Guard Industries, Ambuja Cements
Motilal Oswal has a neutral rating on Bajaj Finance with a target price of Rs 3,550.
The domestic stock market on Monday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 12.50 points lower 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.
CLSA has maintained sell rating on Vodafone Idea with a target price and cut target price to Rs 7 from Rs 12.5. Vodafone Idea’s June quarter results disappointed with revenues down 4 per cent quarter-onquarter, Ebitda down 20 per cent and a loss of Rs 50 billion all missed estimates, said CLSA. A lower-than-expected 4 per cent sequential rise in ARPUs was the key disappointment, the brokerage said. Despite the rights issue, gearing remains high at 20 times Ebitda; another infusion may be required in six quarters, said CLSA, cutting FY20-21 estimates by 5-29 per cent. The stock ended down 4.8 per cent at Rs 9.25 on Friday.
Motilal Oswal has a neutral rating on Bajaj Finance with a target price of Rs 3,550. Bajaj Finance has maintained its robust growth trajectory, with deepening geographical penetration and increasing repeat business, said Motilal Oswal. The brokerage expects the improving deposit franchise to be a key driver for incremental liabilities over the next few years. Given its parentage and AAA rating, Bajaj Finance has comfortably sailed through the recent liquidity crisis and maintained strong growth, the brokerage said. However, the recent asset quality concerns in certain products might cause some slowdown in loan growth, it added. The stock ended up 7.2 per cent at Rs 3,265.85 on Friday.
Emkay Global has assumed coverage on PI Industries with a revised target price of Rs 1,305. The brokerage remains positive on the stock given robust exports order book, presence in early-stage molecules in agrochemicals, net cash balance sheet, and strong R&D pipeline. The brokerage has raised FY20/21 revenue and EPS by 2.9 per cent/ 3.1 per cent and 2.6 per cent/0.6 per cent on strong exports business growth. The stock ended up 0.1 per cent at Rs 1,094.9 on Friday.
Edelweiss has maintained reduce rating on V-Guard Industries and revised target price to Rs 155 from Rs 150. Management continues to focus on expanding penetration in non-south regions by distribution expansion and leveraging its brand, the brokerage said. Also, sustaining balance between growth and profitability in non-south apart from entry into new segments remains key, said Edelweiss. Besides, at 44 times FY21 EPS, the stock is trading at a rich valuation, the brokerage said. The stock ended down 1.92 per cent at Rs 235.45 on Friday.
ICICI Securities has a hold rating on Ambuja Cements with a target price of Rs 200. The government’s focus on the infrastructure development and housing for all is expected to bode well for cement demand, the brokerage said Despite lower growth expected in revenues, RoCE is expected to improve, it added. However capacity bottlenecks would continue to pose a challenge, which may lead to market share loss, the brokerage said. The stock ended down 0.6 per cent at Rs 213.4 on Friday.