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Analyst Calls: MSI, JSW Steel,Thermax, Bharti Infratel

Good morning!

The domestic stock market on Friday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 26.50 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.

• Reliance Securities has retained hold rating on
Maruti Suzuki India with a target price of Rs 7,250. The company’s BS-VI products would be at most competitive pricing with better technology, said Reliance Securities. Industry demand situation may improve steadily in FY21, while it would bounce back in H2 FY21, said Reliance Securities. BS-VI products would help company to gain further market share in FY21, the brokerage said. The stock ended down 1.2 per cent at Rs 7,240.75 on Thursday.

• Antique Stock Broking has maintained hold rating on
JSW Steel with a target price of Rs 277. JSW Steel is likely to witness flat steel spreads sequentially in third quarter of FY20 as the decline in steel prices in October 2019 and reset of half yearly automotive contracts at lower levels would impact the quarter, said Antique. Recovery in domestic steel demand in Q4 would enable further price hikes with current domestic steel prices at a discount to landed import parity Chinese prices, said Antique. The stock ended up 1 per cent at Rs 269.30 on Thursday.

• Ambit Capital has initiated coverage on
Thermax with a buy rating and target price of Rs 1,211. Thermax is no longer a play on domestic private capex cycle with international business now contributing 45 per cent to overall consolidated revenue, said Ambit. Profitability of international subsidiaries is expected to improve as restructuring is nearing completion, the brokerage said. Moderating competitive intensity in big ticket orders and shift in mix towards specialty chemicals would aid margin expansion, said Ambit. The stock ended up 0.35 per cent at Rs 1,054.60 on Thursday.

• Kotak Institutional Equities has maintained reduce rating on
Bharti Infratel with a fair value of Rs 275. Long stop date pertaining to Bharti Infratel-Indus merger got extended further to February 24, 2020 on account of pending regulatory approvals. Bharti Infratel’s near-term growth prognosis remains weak, it said. Higher working capital driven by increasing receivables is an additional pressure point on cash flows, the brokerage said. The stock ended up 0.2 per cent at Rs 255.80 on Thursday.

• Reliance Securities has maintained buy rating on
JK Lakshmi Cement with a target price of Rs 465. The company is likely to witness healthy traction ahead mainly on account of new commissioned grinding unit in Odisha, cost synergies and steady pricing environment in Northern markets, it said. With no meaningful capex hereon, the brokerage expects JK Lakshmi cement to generate free cash flow worth Rs 1,000 crore in FY20-FY21. The stock ended flat at Rs 273.60 on Thursday.

Source: Economic Times