Analyst Calls: HUL, Quess Corp, Grasim, Dr Reddy’s Labs

Good morning!

The domestic stock market on Monday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 219.75 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.


• CLSA has maintained buy rating on Hindustan Unilever with a target price of Rs 2,500. Hindustan Unilever appears to be at the forefront of the changing supply chain ecosystem, with continued thrust on leveraging technology and data-led decision-making, as consumer distribution networks brace for disruption, said CLSA. Ground checks indicate that HUL is exploring multiple measures to stay ahead of the game in distribution and supply chain operations, said CLSA. Shares of Hindustan Unilever ended down 1.3 per cent at Rs 2,186.60 on Friday.

• Motilal Oswal has maintained neutral rating on Quess Corp with a target price of Rs 560. Through Comtel, Quess has exposure to geographies like Singapore which were severely impacted by Covid-19, said Motilal Oswal. Increasing spread of Covid-19 in core geographies like India will pose a key risk to business continuity of Quess, the brokerage said. This will be a double whammy given the already weak economy and demand for business services, the brokerage said. Shares of Quess Corp ended up 0.1 per cent at Rs 501 on Friday.


• Morgan Stanley has an overweight rating on Grasim Industries with a target price of Rs 910. Standalone businesses are facing cyclical challenges, but Morgan Stanley believes this is adequately reflected in the stock’s underperformance. Lack of clarity on the fate of the group’s telecom company remains an overhang. Grasim’s board has not yet received any proposal to evaluate such an investment, said Morgan Stanley. Shares of Grasim Industriesended down 2.17 per cent at Rs 665.15 on Friday.

• Jefferies has a buy rating on Supreme Industries with a target price of Rs 1,530. Jefferies has reiterated Supreme Industries as one of its top India midcap picks as it scores well on all counts- robust business franchise and market share, strong growth levers, value-added mix, entrenched network and pristine financials. The brokerage sees minimal impact of Covid-19 disruption as value chain of plastic pipes is largely domestic centric. Shares of Supreme Industries ended down 0.5 per cent at Rs 1,235.35 on Friday.

• Citigroup has a buy rating on Dr Reddy’s Laboratories with a target price of Rs 3,700. The brokerage said its meeting with management reinforced its view that Dr Reddy’s efforts to reduce its dependence on US generics, broaden product portfolio and drive productivity gains would continue to surprise the street positively. Shares of Dr Reddy’s Laboratories ended down 0.35 per cent at Rs 3,169.75 on Friday.