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Analyst Calls: HDFC Bank, Shree Cement, APSEZ

Good morning!

The domestic stock market on Monday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 21.50 points lower this morning, signalling a weak start for Dalal Street.

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

. Antique Stock Broking has maintained a buy rating on HDFC BANK with a target price of Rs 1,525. Driven by the recent shift

in lending (non-retail and housing) and term deposits mix, the brokerage expects NIMs to decline. Nevertheless, cost to assets should trend lower by 20 bps over FY19-22. Increase in credit cost should get offset by higher

counter-cyclical provisions built in P&L and lower tax rate, said Antique. Shares of HDFC Bank ended up 0.3 per cent at Rs 1,274.9 on Friday.

. Elara Capital has maintained buy rating on APL APOLLO TUBES with a target price of Rs 2,181. Revival in demand coupled with incremental volume from newly added capacity would continue to aid in volume growth, said Elara. Further, domestic steel prices have improved gradually after huge pressure over the past several months, which would lead to improvement in realisation and restrict inventory loss, thereby leading to gradual margin expansion, the brokerage said. Shares of APL Apollo Tubes ended up 4.3 per cent at Rs 1,781.60 on Friday.

. Kotak Institutional Equities has maintained sell rating on SHREE CEMENT with a target price of Rs 15,200. The company’s management highlighted that demand recovery is not yet visible in the second half of FY20 and sluggish demand remains a concern, said Kotak Institutional. Underutilised capacity would help Shree Cement outperform industry growth but margins should remain rangebound as price pressure offsets cost deflation, said Kotak Institutional. Shares of Shree Cement ended up 0.75 per cent at Rs 20,492.65 on Friday.

. ICICI Securities has maintained buy rating on HEXAWARE TECHNOLOGIES and revised target price to Rs 430 from Rs 425. The brokerage expects the worst of the company’s client-specific issues to be behind by the fourth quarter

of 2019 with revenue growth likely to sustain in double digits on an organic basis in 2020. The brokerage

expects momentum to improve in the BFS vertical in 2020 as spends at the large secondary mortgage

client seeing issues should bottom out in the fourth quarter of 2019. Shares of Hexaware Technologies

ended up 2.9 per cent at Rs 331 on Friday.

. CLSA has a buy rating on ADANI PORTS AND SPECIAL ECONOMIC ZONE with a target price of Rs 485. Adani

Ports acquired Snowman Logistics at the bottom of the cycle to enter coldchain logistics, said CLSA.

Funding is not a problem for Adani Ports as its post-acquisition leverage will rise 1.8 per cent in FY21, said

CLSA. In terms of earnings, Snowman M&A adds Adani Port’s consolidated Ebitda by 0.7 per cent in FY21, the brokerage

said. Shares of Adani Ports ended flat at Rs 363.65 on Friday.

Source: Economic Times