Friday’s rally on Nifty might have caught the bears on the wrong foot; 3 stocks to buy
Brokerage: Credit Suisse | Rating: Outperform | Target: Cut to Rs 175
The global research firm said that Q4 may reflect partial recovery. It sees 30% higher employee costs seem to be absorbed even as 9MFY18 margin is higher YoY. It is revising earnings estimates by 6 and 4 percent for FY18 and FY19, respectively.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 960
Credit Suisse believes that its Q4 may be weak but medium-term story is intact. IP is a volatile element of the company’s business and hence can create nuances. It also continues to expect healthy revenue growth.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,025
The global brokerage firm said that the guidance for decline in IP revenue in Q4 has come as a negative surprise. It sees a potential 6% cut to FY18 EPS as most likely outcome.
Brokerage: CLSA | Rating: Buy | Target: Rs 970
Over FY17-20, it sees 24% earnings CAGR led by premium growth & margin expansion. It expects the company to benefit from regulatory actions with the change in motor TP norms.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 440
The firm said that BS-VI implementation is likely to provide a big boost to wiring harness industry. It highlighted that the company is not too worried about topline slowdown at SMR and that it will return soon. For SMP, the margin can remain under pressure for few quarters as 2 large plants come on stream. It believes recent correction represents a good entry opportunity.
Brokerage: CLSA | Rating: Buy | Target: Rs 7,850
The brokerage said that acquisition of Novartis’ stake may lead to divestment of GSK Consumer. A change in ownership may increase focus & improve its growth trajectory. It added that the deal value will depend on distribution alliance.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 550
Recovery seems broad-based, with multiple growth drivers, it said, adding that the company has increased focus on CVs and used vehicles. Improving rural trends should result in better asset quality, it added.