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Analyst Calls: TCI Express, Torrent Pharma, Indigo, Brigade Enterprises

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 28.50 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.

• IIFL Securities has initiated coverage on
Brigade Enterprises with a target price of Rs 302. The brokerage expects Brigade’s operating cash flows to clock above 20 per cent compounded growth over FY19-22, primarily driven by around 25 per cent CAGR in rentals, on the back of stabilisation of its upcoming projects in Bengaluru and Chennai. Around 80 per cent of the consolidated debt is on commercial and hospitality, supported by current and future rentals; albeit management is looking to de-leverage the balance sheet via a REIT listing in 2-3 years, said IIFL Securities. The stock ended up 2.2 per cent at Rs 230.15 on Tuesday.

• UBS has maintained buy rating on
InterGlobe Aviation and raised target price to Rs 2,150 from Rs 2,000. Third quarter revenues surpassed expectations on better load factor, yield and ancillary revenues, said UBS. IndiGo’s high growth can continue over the medium-term supported by aggressive network expansion for outbound travel, said UBS. Valuations are attractive as margins are at a cyclical low and earnings could continue to surprise on the upside, the brokerage said. The stock ended down 2.65 per cent at Rs 1,453.25 on Tuesday.

• ICICIdirect has a buy rating on
TCI Express with a target price of Rs 1,020. The express segment has been delivering robust earnings growth, primarily due to the benefits of reduced delivery time, growing preference for just-in-time approach and minimisation of loss of sale opportunities, said ICICIdirect. Low leverage, a robust growth trajectory and high core return ratios, position TCI Express as one of the preferred picks in the logistics space, said ICICIdirect. The stock ended down 0.5 per cent at Rs 831.40 on Tuesday.

• Credit Suisse has upgraded
United Spirits to outperform from neutral, with a target price of Rs 700. United Spirits has de-rated in the past 18 months and now trades at 10-20 per cent discount to tier-2 FMCG stocks, said Credit Suisse. The near-term pressures are fully priced in and risk reward is favourable, it said. Key triggers will be lowering of input costs or price hikes in key states, it said. The stock ended up 14 per cent at Rs 656.40 on Tuesday.

• CLSA has maintained outperform rating on
Torrent Pharmaceuticals and raised target price to Rs 2,050 from Rs 1,950. The brokerage has raised earnings estimates by 1-3 per cent after Q3 earnings beat estimates. US revenue was flat sequentially and will likely decline in FY21 as the US FDA issues at its key manufacturing sites will take time to resolve, said CLSA. India will be a key medium-term growth driver, said CLSA. The stock ended down 5.6 per cent at Rs 1,913.25 on Tuesday.

Source: Economic Times