The domestic stock market on Tuesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 43 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.
• Prabhudas Lilladher has maintained accumulate rating on
Manappuram Finance with a target price of Rs 195. The brokerage has initiated coverage on the stock given its strong moat in the gold loan business and rising scalability of non-gold business. Manappuram stands in a sweet spot underpinned by low leverage and effective asset liability management. The brokerage estimates 20 per cent AUM CAGR, operating leverage and prudent asset quality over FY20-22. Shares of Manappuram Finance ended up 1.4 per cent at Rs 178.65 on Monday.
• ICICIdirect has a buy rating on
Mahanagar Gas with a target price of Rs 1,230. The company’s strong gas pipeline infrastructure and expanding operations in Mumbai, its adjoining areas and Raigad district will enable the company to capture the benefits of the large and growing market given the low penetration, it said. Shares of Mahanagar Gas ended up 0.9 per cent at Rs 1,054.75 on Monday.
• Emkay Global has maintained buy rating on
Dhanuka Agritech and raised target price to Rs 480 from Rs 450. Dhanuka Agritech’s focus on improving product mix by means of new launches should be visible from second half of FY20, said Emkay Global. The brokerage has increased FY20/21 revenue by 4 per cent/2 per cent and profit by 5 per cent/2 per cent factoring in a robust rabi season and improvement in Ebitda margins. Shares of Dhanuka Agritech ended up 2.33 per cent at Rs 412.65 on Monday.
• ICICIdirect has maintained buy rating on
Larsen & Toubro Infotech and raised target price to Rs 2,025 from Rs 1,880. Management commentary on second half of FY20 being stronger compared to first half of FY20, niche capabilities in the industries sub segments and large deal pipeline enhance growth visibility, said ICICIdirect. Currently, it is trading at around 15 times on FY22 estimated EPS while EPS growth over FY20-22 is expected to be 14.0 per cent, the brokerage said. Shares of Larsen & Toubro Infotech ended up 0.8 per cent at Rs 1775.35 on Monday.
• Citigroup has maintained buy rating on
Gateway Distriparks with a target price of Rs 174 after the company entered into a share purchase agreement to sell its entire stake of 40.25 per cent in Snowman Logistics for Rs 296 crore. The transaction will lead to faster deleveraging of Gateway’s balance sheet. Gateway has also announced early redemption of debentures of Rs 500 million, said Citigroup. Future redemptions can lead to faster reduction in interest outgo. Shares of Gateway Distriparks ended up 11.5 per cent at Rs 122.40 on Monday.
Source: Economic Times