Analyst Calls: Dabur India, Voltas, Ashok Leyland
Kotak Institutional Equities has maintained sell rating on Voltas and cut target price to ₹455 from ₹500.
By ET Bureau |
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The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 39.80 points higher this morning, signalling a good start for Dalal Street.
. Kotak Institutional Equities has maintained sell rating on Voltas and cut target price to ₹455 from ₹500. Covid-19-related lockdowns will have a significant impact on Voltas’ FY21revenues, particularly as retail outlets remain closed in the seasonally strong June quarter, said Kotak Institutional. Voltas remains a long-term play on India’s underpenetrated AC market but current valuations factor in these positives, it said. The stock ended up 0.75 per cent at ₹503.55 on Wednesday.
. CLSA has maintained buy rating on Crompton Greaves Consumer Electricals with a target price of ₹255. Relatively low share of seasonal products in the overall sales mix, limited exposure to B2B/housing, and an ability to extend working capital to the channel makes Crompton Consumer relatively resilient in the discretionary space, said CLSA. Fans, lighting and pumps, which are less discretionary, account for 90 per cent- plus of revenue, said CLSA. The stock ended up 1.53 per cent at ₹218.85 on Wednesday.
. JM Financial has upgraded Ashok Leyland to buy and cut target price to ₹70 from ₹85. Tracking the CV cycle and stock returns of Ashok Leyland, the brokerage said the return profile changes materially if accumulated during the downcycle versus the first year of volume recovery. JM estimates revenue growth of 12 per cent CAGR and EBITDA growth of 45 per cent CAGR over FY20-22E, driven by a sales upcycle and margin expansion. The stock ended up 1.93 per cent at ₹44.95 on Wednesday.
. Kotak Institutional Equities has maintained reduce rating on Dabur India with a target price of ₹440. The brokerage said it expects Dabur's portfolio to be relatively more resilient in the current and post-Covid environment, though a couple of parts of the India portfolio could be challenged. GCC exposure could mean some weakness in the international portfolio as well, said Kotak. The stock ended up 0.94 per cent at ₹502.75 on Wednesday.
The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 39.80 points higher this morning, signalling a good start for Dalal Street.
. Kotak Institutional Equities has maintained sell rating on Voltas and cut target price to ₹455 from ₹500. Covid-19-related lockdowns will have a significant impact on Voltas’ FY21revenues, particularly as retail outlets remain closed in the seasonally strong June quarter, said Kotak Institutional. Voltas remains a long-term play on India’s underpenetrated AC market but current valuations factor in these positives, it said. The stock ended up 0.75 per cent at ₹503.55 on Wednesday.
. CLSA has maintained buy rating on Crompton Greaves Consumer Electricals with a target price of ₹255. Relatively low share of seasonal products in the overall sales mix, limited exposure to B2B/housing, and an ability to extend working capital to the channel makes Crompton Consumer relatively resilient in the discretionary space, said CLSA. Fans, lighting and pumps, which are less discretionary, account for 90 per cent- plus of revenue, said CLSA. The stock ended up 1.53 per cent at ₹218.85 on Wednesday.
. JM Financial has upgraded Ashok Leyland to buy and cut target price to ₹70 from ₹85. Tracking the CV cycle and stock returns of Ashok Leyland, the brokerage said the return profile changes materially if accumulated during the downcycle versus the first year of volume recovery. JM estimates revenue growth of 12 per cent CAGR and EBITDA growth of 45 per cent CAGR over FY20-22E, driven by a sales upcycle and margin expansion. The stock ended up 1.93 per cent at ₹44.95 on Wednesday.
. Kotak Institutional Equities has maintained reduce rating on Dabur India with a target price of ₹440. The brokerage said it expects Dabur's portfolio to be relatively more resilient in the current and post-Covid environment, though a couple of parts of the India portfolio could be challenged. GCC exposure could mean some weakness in the international portfolio as well, said Kotak. The stock ended up 0.94 per cent at ₹502.75 on Wednesday.
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