Tuesday, 19 September 2017

Buy, Sell, Hold: 3 stocks and 4 sectors are being tracked by analysts today

HDFC, Somany and pharma, among others, are on the radar of investors on Tuesday.

commodity trading tipsHDFC

Brokerage: JPMorgan | Rating: Overweight | Target: Hiked to Rs 1,975

The global research firm expects steady earnings growth and minimal asset quality risk. Further, it also expects earnings per share (EPS) to growh at 15 percenr CAGR over 3 years. It values HDFC Life At Rs 55,000 crore, implying price/embedded value of 4.4x (FY17). It views HDFC as a defensive stock.

Glenmark

Brokerage: Nomura | Rating: Buy | Target: Hiked to Rs 880

The global broking firm sees a potential upside of 45 percent in the stock and believe that US launches and out-licensing deals will positively impact earnings. Further, it said that approval of four key drugs will add USD 50 million with EPS impact of Rs 9 per share in FY19. It also said that the out-licensing will generate upfront payments of more than USD 100 million.

Somany Ceramic

Brokerage: IIFL Sec| Target: Rs 967

The brokerage house has initiated coverage on the stock with a potential upside of 20 percent. it expects revenue growth to bounce back to 18 percent in FY19 and sees acceleration in tile segment & ramp-up of brownfield capacity. it also expects consistent strong performance, healthy balance sheet and low leverage. Commodity Trading Tips

Pharma

Brokerage: Goldman Sachs

The global investment bank observed that the sector continues to underperform and new launches are the key to this. Further, it said that the stock is still not pricing in a bear or stress case. It likes Aurobindo due to continued momentum in product launches and valuations. Meanwhile, it has a sell on Cipla as it does not see disproportionate growth from the US.

Media

Brokerage: IIFL

IIFL said that digitization will help Zee and Sun. Further, it expects EPS to grow at CAGR of 23/16 percent for Zee/Sun over FY17-20. It sees Zee’s total revenue to grow 6%/17%/14% for FY18/19/20, while Sun’s total revenue could grow 9%/21%/16% for FY18/19/20. Having said that, Dish TV could face a bigger threat from 4G/FTTH and feels there is a need to reinvent.

Oil Marketing Cos

Brokerage: Morgan Stanley

Morgan Stanley has turned more bullish on gas utilities as it sees a multi-year growth cycle ahead. This view, it said, bodes well for oil refiners as well. In this sector, the research firm’s key picks include Reliance Industries, IOC, Petronet LNG, GAIL and BPCL. It also highlighted that OMCs have the balance sheet, scale and an intent to support gas in many ways. In fact, it estimates gas to replace half of fuel oil consumption in the industries by 2021.

On oil and gas companies, the company also sees OMCs as key enablers in raising India’s gas demand by 50 percent by FY22. It added that the OMCs were leading and have the capability to support USD 30 billion gas investment need.

Banking Sector

Brokerage: CLSA

The global research firm said that loan growth remains moderate with limited capex activity. Further, it said that private banks are seeing potential for market share gains from PSU banks. Retail continues to drive growth across banks, but share of unsecured lending is rising and said that lowering interest on savings deposits can bring down funding cost by over 15 bps.
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Monday, 18 September 2017

Buy, Sell, Hold: 8 stocks and 1 sector on analysts’ radar today

TCS, Infosys, Wipro and among others being tracked by investors on Monday.

Free trails trading tipsTCS

Brokerage: Goldman Sachs | Rating: Neutral | Target: Rs 2,232

The global brokerage house raised estimates for earnings per share for FY18/19/20 by 1/3/4 percent.

Infosys

Brokerage: Goldman Sachs | Rating: Upgrade to Neutral from Sell | Target: Rs 799

Goldman Sachs said that the stock looks fairly valued at the current levels.

Wipro

Brokerage: Goldman Sachs | Rating: Downgrade to Sell from Neutral | Target: Rs 238

The research firm said that it sees EPS growing at CAGR of 3 percent over FY17-20. Further, it believes that headwinds for the stock could be an underperformance in quarterly earnings and market share loss.

Petronet LNG

Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 280

The global research firm said that the EPS could grow at a CAGR of 13 percent over FY17-21, while the utilization from its Kochi unit may rise to 11/29/39 percent in FY19/20/21.

Tata Motors

Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 515

The global research firm said that the second half of this fiscal could improve on new product launches and change in the hedging policy. The company could also see production ramp up to be quicker in the future. Free Trails trading tips

ICICI Pru

Brokerage: CLSA | Rating: Buy | target: Rs 560

CLSA said that ICICI Pru was among its top picks in the sector and sees RoEV of 17-19 percent in FY18-20. The company is also well capitalized with a solvency ratio of 290 percent. A cut in dividend payout, it added, would improve the EV growth.

Crompton Cons

Brokerage: CLSA | Rating: Buy | Target: Rs 270

CLSA expects pumps biz to post 16% revenue CAGR over FY17-19 and sees agricultural pumps to be a large opportunity. Moreover, a focus on go-to market capability and EESL orders could support growth and a successful execution could lead to a re-rating of stock.

ICICI Bank

Brokerage: CLSA | Rating: Buy | Target: Rs 380

CLSA highlighted that the bank expects NPL addition to be sharply lower in FY18, while the retail loans could drive 15-16 percent growth in domestic loans. It sees a rerating potential once asset quality concerns abate.

Utilities

Brokerage: Credit Suisse

Credit Suisse said that overall power demand remains weak. Meanwhile, the month of August was better at 8 percent but it has not sustained in September. It also highlighted that the power market remained strongly in surplus, while all India PLF is still well below 60 percent. This figure could remain below 70 percent till FY22.
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Friday, 15 September 2017

Buy, Sell, Hold: 7 stocks and 1 sector are on analysts’ radar today

ICICI Pru, Voltas and Idea, among others are on the radar of investors on Friday.

stock market free tipsICICI Pru

Brokerage: CLSA | Rating: Buy | Target: Rs 560

The global research firm said that ICICI Pru was among its top picks in the financials space. Further, it said that the firm was focusing on growth with better profitability and said that India offered strong macro growth drivers for life insurance. Going forward, it sees healthy growth premiums and a cut in dividend payout will improve EV growth.

Cyient

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 565

Morgan Stanley said that IASI divestment transaction has no implications on the company’s existing relationship with UTC. Further, it added that the company’s exit signals risk to its estimates, but is not material to overall earnings. Stock market free tips

Voltas

Brokerage: BofAML | Rating: Neutral | Target:

Bank of America Merrill Lynch said that domestic presents growth opportunity on current base with rural electrification. It also said that the company expects MEP margins to trend up to 7%; may take 3-5 years in their view.

Brokerage: Buy | Rating: Buy | Target: Rs 660

With legacy projects behind, the management expects 5-6% EBIT in the near term. It further said that the stock was trading near its peak multiple which may sustain.

BHEL

Brokerage: UBS | Rating: Sell | Target: Rs 73

The brokerage house said that Mumbai-Ahmedabad bullet train opportunity is too small and too far. The contract implies Rs 10-11 billion annual revenue — 3% of FY18 revenue estimates.

Idea

Brokerage: HSBC | Rating: Reduce | Target: Rs 77

HSBC said that the company’s standalone tower assets sale could be at a discount. While leverage remains a concern, it sees net debt/EBITDA for 2018 at 6.4 times. It also said that benefits of synergy from merger with Vodafone is a key medium-term catalyst for the firm.

Power Grid

Brokerage: Jefferies | Rating: Hold | Target: Rs 200

Jefferies said that the company’s weak bid pipeline points to medium-term risk and believes that the company is a gradual re-rating case.

Tata Communications

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 790

Minority shareholders will benefit if VSNL land is demerged, the report added. Further, the land parcel is valued at Rs 289 and the target will be hiked to Rs 1,071 if the land demerger goes through.

IT

Brokerage: Macquarie

The global research firm said that the sector’s FY18 dollar revenue growth may be same or below FY17. It likes Hexaware and L&T infotech from midcap space.
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Tuesday, 12 September 2017

Buy, Sell, Hold: 10 stocks and 1 event are on investors’ radar

Tata Steel, IndusInd Bank, and ICICI Bank, among others are being tracked by investors today.

stock free tipsTata Steel

Brokerage: PhillipCap | Rating: Buy

The brokerage firm said that RAA nod from pension regulators is a positive for the stock and this final approval was the last key milestone for pension resolution. Further, it expects Thyssen JV to be announced soon post after this approval.

Brokerage: HSBC | Rating: Buy | Target: Rs 750

HSBC said that the approval of Registrar Accreditation Agreement now paves the way for merger with Thyssenkrupp. In fact, this merger will consolidate European steel industries further. The merger could help unlock synergies, it added. indian stock tips

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 741

The global research firm said that the pension issue is resolved and the focus now shifts to the potential JV with Thyssenkrupp. The merger will be a positive for both companies, it added.

Axis Bank

Brokerage: Edelweiss Securities

The brokerage observed that the bank had strong retail loan book growth and expects corporate loan growth to recover. Further, it said that the lender had stable asset quality and NPA issues have bottomed out. It recommends holding from a long term perspective.

HDFC Bank

Brokerage: Edelweiss Sec | Rating: Hold

The brokerage observed that the stock was maintaining a minor drawdown in its upward move. It saw crucial supports at Rs 1,780 / Rs 1,750.

ICICI Bank

Brokerage: Edelweiss Sec

The brokerage said that continued traction on retail loans & corp book recovery augur well for the stock. It expects margin to improve due to improving liability and asset mix. Additionally, it said that the asset quality was stable and is expected to improve. In fact, the bank is an interesting value unlocking play. It sees major resistance at Rs 320, while crucial support is seen at Rs 290.

Kotak Mahindra Bank

Brokerage: Edelweiss Sec

Edelweiss Securities said that the bank had among the best underwriting standards in the banking industry. The medium term trend for the lender is up and momentum oscillators have turned bullish. Moreover, its price pattern suggests that it can move towards Rs 1,200 in the medium term.

Deccan Cements

Brokerage: ICICI Securities | Target: Rs 700-725

ICICI Securities sees sales and EBITDA growing at a CAGR Of 9.9% & 21.4% over FY17-19. It has assigned an EV/EBITDA multiple Of 6.5-6.7x For FY19.

Cochin Shipyard

Brokerage: ICICI Sec | Rating: Buy | Target: Rs 725

It expects revenue, EBITDA & PAT CAGR of 14.2%, 13.3% & 10.5% For FY17-19. It values the company at 25x FY19 EPS of Rs 29.

IndusInd Bank

Brokerage: UBS | Rating: Neutral | Target: Rs 1,800

UBS sees merger with Bharat Financial Inclusion to be EPS accretive by FY19-20. The neutral rating is due to existence of NPL risks from mid-corp segment.

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,625

The global research firm said that the Bharat Fin merger could increase bank’s RoA by 9 bps and the merger could increase the bank’s MFI exposure to 10 percent of loans. Having said that, it does not expect a boost to CASA ratio from the merger.

Brokerage: IDFC Securities | Rating: Overweight | Target: Rs 1,725

IDFC believes that the merger will be capital accretive, positive on RoE and RoA on FY18/19. It expect swap ratio of 1.6-1.7 shares of Bharat Fin for every share of IndusInd Bank.

IndusInd Bank-Bharat Fin

Brokerage: Deutsche Bank

The bank sees an imminent deal between the two entities, which could be a positive. It added that long-term effects are immense as IndusInd becomes a dominant player in MFI space.

HUL

Brokerage: Jefferies | Rating: Assume coverage at buy | Target: Rs 1,320

Jefferies likes the company’s execution on product innovation & steady distribution expansion. Volume growth, rise in margin should underpin 16.7% EPS CAGR in FY17-20.

Coal India

Brokerage: Morgan Stanley | Target: Underweight | Target: Rs 221

Morgan Stanley said that a volume growth recovery is likely and is factored in its estimates. It said that units were expected to raise inventory to normalised levels in coming months and any potential increase in the cost vs guidance key for stock performance.

Friday, 8 September 2017

Nifty likely to open on positive note, gain 15 points: Maximus Securities

Trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 15 points at the opening bell, says Maximus Securities.

STOCK FREE TIPSF&O Outlook:

Nifty PCR-OI has increased to 1.13 from 1.10. The rise in the ratio may be due to increase in PE of 9900 and decrease in CE of 11000. PE of 9900 and CE of 10000 are the highest number of contracts traded.

Opening for the Day:
Trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 15 points at the opening bell. STOCK FREE TIPS

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Thursday, 7 September 2017

ICICI Lombard General Insurance IPO to open on September 15, ICICI Bank shares gain

ICICI Lombard General Insurance Company will launch its initial public offer of up to 8,62,47,187 equity shares on September 15.

free stock tipsICICI Bank shares gained more than 1 percent intraday Thursday after CNBC-TV18 report said the IPO of its general insurance company will open for subscription in the coming week.

ICICI Lombard General Insurance Company will launch its initial public offer of up to 8,62,47,187 equity shares on September 15.

The issue consists of offer for sale of up to 3,17,61,478 equity shares by promoter ICICI Bank, up to 5,44,85,709 shares by investor Fal Corporation. The issue also include a reservation of up to 43,12,359 equity shares for purchase by ICICI Bank shareholders.

The issue will close on September 19.

ICICI Lombard is the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017. FREE STOCK INTRADAY TIPS

DSP Merrill Lynch Limited, ICICI Securities and IIFL Holdings are global co-ordinators and book running lead managers to the issue.

CLSA India Private Limited, Edelweiss Financial Services and JM Financial Institutional Securities are book running lead managers to the issue.

At 10:22 hours IST, the stock price was quoting at Rs 297.10, up Rs 1.85, or 0.63 percent on the BSE.
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Wednesday, 6 September 2017

Nifty likely to open gap down on back of weak global cues: ICICIdirect

Nifty is likely to open gap down on the back of weak global cues. Sell Nifty in range of 9970-9980 for target of 9925, stop loss: 10000, says a report by ICICIdirect.

Indian stock market tipsNifty

Benchmark indices covered most of Monday’s loss after witnessing support near 9900. They traded with a positive bias in the second half. Sentiment boost was provided by midcaps whereas realty, auto and banking along with Reliance Industries led the index to end with a gain of over 50 points.

The volatility continued to remain choppy, which provided further steam to the index. Nifty futures settled at a premium of 19 points with PCR OI at 1.34 levels. The highest Put base is at the 9700 strike with 46 lakh shares while the highest Call base is at the 10000 strike with 42 lakh shares. Indian Stock market tips

Nifty Bank

On the back of short covering, the index ended marginally below 24400. However, stock specific selling continued in private sector leaders. Looking at the overall options set-up, we feel the index is likely to witness support near 24200. We feel that after initial dips in the index, the Nifty Bank is likely to consolidate near this levels.

Index Outlook

Nifty Future: The Nifty is likely to open gap down on the back of weak global cues. Sell Nifty in range of 9970-9980 for target of 9925, stop loss: 10000.

Bank Nifty Future: On the back of short covering, the index ended marginally below 24400. However, stock specific selling continued in private sector leaders. Looking at the overall options set-up, we feel the index is likely to witness support near 24200. We feel that after initial dips in the index, the Nifty Bank is likely to consolidate near this levels.

Buy Nifty Bank in the range of 24150-24200, target: 24300-24400, stop loss: 24060.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.