Skip to main content

Buy, Sell, Hold: 3 stocks and 2 sectors are being tracked by analysts today

Buy, Sell, Hold: 3 stocks and 2 sectors are being tracked by analysts today

ITC, HDFC Bank and IT sector, among others are on the radar of investors today.

ITC

Brokerage: Nomura | Rating: Buy | Target: Rs 389

Nomura believes that most headwinds for ITC are out of the way and strong earnings revival is likely. It sees earnings CAGR of 17.6 percent over FY17-20 on the back of revenue CAGR of 14 percent. Further, it has raised FY19 earnings by 2 percent to incorporate changes with GST rollout.

HDFC Bank

Brokerage: CLSA | Rating: Buy | Target: Rs 2,000

CLSA highlighted that the bank was investing in artificial intelligence, automation and branch digitisation. Further, it added, that the digitisation investment should aid employee productivity. Moreover, growth in debit cards will be the key to CASA growth going ahead. With agri loans growing, the report highlighted that NPLs could see some pressure from farm loan waivers.

Tata Power

Brokerage: Ambit | Rating: Buy | Target: Rs 112

The brokerage house said that losses from Mundra should reduce, given the company’s focus on reducing plant load factor. The company can also potentially raise Rs 6,200 crore from stake sale in group companies and demerger. It sees better profitability in renewables business, while it sees net debt to equity ratio to reduce to 2.1 times from 3.1 times.

Information Technology

Brokerage: CLSA

CLSA foresees poor large deal wins and ramps to drive an uninspiring Q1. June is likely to miss the seasonal strength of the quarter and may see organic constant currency QoQ growth ranging from -3 to 2 percent. Cross currencies and M&A make headline numbers barely better at -0.7-4 percent. It sees organic growth to be led by TCS, Infosys, and HCL Technologies, while it will be lagged by Tech Mahindra and Wipro. It expect Infosys and HCL Tech to retain guidance & Wipro to guide 1-3% for Q2. The brokerage house has a buy call on HCL Tech and TCs, while it has downgraded Wipro to outperform from buy. Meanwhile, it has an underperform rating on Infosys and sell call on Tech Mahindra.

Brokerage: Deutsche Bank

The global financial services firm sees weakness in financial services and retail verticals to lead to a soft start to the current fiscal. It is incorporating a stronger rupee, while it cut estimates and targets by 0.3-7 percent. Key risks, according to it, include recession in the US and Europe, affecting technology spend. Further, it expects top tier Indian vendors to report -0.8 to 5.3 percent quarter on quarter USD revenue growth.

Meanwhile, it expects Infosys to be at the top end of the range with 3 percent QoQ CC revenue growth and is likely to maintain revenue guidance of 6-5-8.5 percent year on year in CC terms.

Brokerage: Ambit

Ambit expects large IT companies to report revenue growth in the range of 3.6 percent decline to 2.7 percent growth. The dollar revenue performance should be in the range of 1.3 percent decline to 3.6 percent growth. Rise in rupee, wage hike and visa costs will result in upto 130 bps margin compression. Further, it expects mid-sized companies to report revenue growth of 1-4.2 percent, while there could be a margin compression of up to 190 basis points. It expects Infosys and HCL Technologies to retain FY18 guidance, while Infosys and Persistent will outperform peers on growth.

FMCG

Brokerage: Ambit

Ambit believes that FMCG’s downward trend may reverse from the second half of FY18 post the earnings being on a downward spiral for the past five years. It expects EPS CAGR of 17 percent for FY17-20 against 11 percent over FY14-17. Record valuation of 38x FY19e P/E factors in this recovery. Most FMCG companies may grow at an unlikely 15-20 percent CAGR for 20 years. Dabur and United Spirits are its top buys, while for other names, a recovery could coincide with mean reversion in multiples.





Labels:

Comments

Post a Comment

Popular posts from this blog

Rewards for speculators who ride out unpredictable markets

The previous couple of years have been unstable ones for South African speculators, and a few late shocks to the nearby and worldwide money related frameworks –, for example, the bureau reshuffle, Brexit, Donald Trump's triumph in the United States – have added to the instability. What ought to financial specialists do in times, for example, these? Presently, like never before, speculators need to adhere to their long haul monetary plans and not change out of higher-hazard ventures, for example, values, into more secure ones, for example, money instruments. Financial specialists who change all through ventures in view of how they read the business sectors charge far more terrible, for the most part, than the individuals who stay consistent with their speculation objectives. The reason is that they tend to switch at precisely the wrong circumstances: they offer when the market is low and purchase when it is high. Speculators who change all through ventures in view of how ...
1 comment
Read more

Nifty likely to close above 10,000 in July series; 5 stocks which can give up to 14% return

There has been aggressive put writing in near strikes with 9900 strike holds the maximum put open interest indicating strong support zone. The Nifty is moving up and has been making new highs on regular basis with a decent addition in open interest (OI) which indicates the strength in the current trend. The Option writers were active last week as we have seen Put writing in 9900, 9800, 9700 strikes and unwinding in calls. The foreign institutional investors (FII’s) options data also indicates fresh buying in index calls (9900, 10000 strikes). Moreover, from derivative data, it is quite possible that Nifty may expire above 10,000 levels in the current series. As in the recent past, we have seen aggressive put writing in near strikes with 9900 strike holds the maximum put open interest indicating strong support zone. On Tuesday, Call writers were unwinding call short position which once again indicates the possibility of upside before expiry. On the technical front, 9920-9...
Post a Comment
Read more

SBI Life gets ready for a big IPO this year, may raise Rs 8500-9000 cr

Once listed, this would be the second life insurer after ICICI Prudential Life Insurance to be listed on the stock exchanges. SBI Life Insurance, which has filed the draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi), is likely to bring out the largest initial public offering (IPO) in the insurance space. Sources said that the insurer could raise as much as Rs 8500-9000 crore from the IPO. Once listed, this would be the second life insurer after ICICI Pre dential Life Insurance to be listed on the stock exchanges. This includes an initial public offer of up to 120 million equity shares of face value of Rs 10 each through an offer for sale by State Bank of India and BNP Paribas Cardif where each will be selling up to 80 million equity shares and up to 40 million equity shares, respectively. Further, it also includes a reservation of up to 2 million equity shares (constituting up to 0.2 percent of the post-offer paid-up share capital) for p...
Post a Comment
Read more