Good morning!
The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 21.50 points higher this morning, signalling a good start for Dalal Street.
As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.
• Motilal Oswal has maintained buy rating on
Jindal Steel & Power with a target price of Rs 210. Management remains focused on deleveraging through free cash flow and monetisation of overseas assets, said Motilal Oswal. FCF generation is likely to be strong with the focus on sweating existing assets and current limited growth capex. The stock trades attractively at FY21 estimated cash P/E of 5 times, said Motilal Oswal. Shares of Jindal Steel ended up 3.6 per cent at Rs 185.7 on Tuesday.
• ICICIdirect has maintained hold rating on
Cyient with a revised target price of Rs 510. Growth challenge in the largest vertical A&D, weakness in top five accounts, investments impacting margins were key draggers for Q3, said ICICIdirect. These consistent issues have led to a washout FY20 with estimated 4.1 per cent YoY fall in overall revenues. Disappointing outlook on post restructuring of margins and higher attrition remain near-term concern, said ICCIdirect. Shares of Cyient ended down 0.1 per cent at Rs 461.6 on Tuesday.
• CLSA has a buy rating on
GAIL India with a target price of Rs 180. GAIL is trading near its 10-year low PE and at a sub-6 times core PE, stripping off the value of investments, said CLSA. Being a leveraged play on India’s gas demand story with volume picking up in 2020, CLSA sees GAIL as an attractive buy. Any plans of unbundling gas transmission may be positive in the short term as the demerged valuation may be much higher than implied by its current stock price, said CLSA. Shares of GAIL ended down 0.9 per cent at Rs 126.7 on Tuesday.
• Phillip Capital has maintained neutral rating on
Hindustan Zinc with a target price of Rs 215. The wait for volume led growth story is getting longer as it’s the second consecutive year where company failed to deliver the annual production guidance, said Phillip Capital. Incremental volumes from expansion projects across the world would gradually push zinc market into surplus, said Phillip Capital. Hindustan Zinc shares ended down 1.9 per cent at Rs 212.3 on Tuesday.
• Jefferies has maintained buy rating on
Federal Bank with a target price of Rs 120. The tough macro made its presence felt in the bank’s third quarter – loan growth was softer and NIM disappointed – resulting in core PPOP growing at a modest 4.0 per cent year-onyear, said Jefferies. New NPL formation, at 2.2 per cent, was in line with two chunky slippages (Dewan & Reliance Home Finance) from an already earmarked stressed book, said Jefferies. Shares of Federal Bank ended up 0.85 per cent at Rs 94.60 on Tuesday.
Source: Economic Times
