Analyst Calls: ICICI Bank, M&M, PI Industries

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The domestic stock market on Monday showed early signs of a possible breakout from its consolidation range.

. CLSA has maintained buy rating on Apollo Hospitals Enterprise and cut target price to Rs 1,800 from Rs 1,850. Lower occupancies may lead to an operating loss in the June quarter, gradual improvement in September quarter and December quarter, and a full recovery only in the fourth quarter, said CLSA. Covid-19 is a disruptor but Apollo's long term outlook remains promising, said CLSA. The stock ended down 3.5 per cent at Rs 1,374.95 on Friday.


. Morgan Stanley has maintained overweight rating on ICICI Bank and cut target price on it to Rs 475 from Rs 640. The stock did well in2019 after years of underperformance but has given the bulk of it back over the past three months, said Morgan Stanley. The brokerage considers this a strong opportunity for long-term investors who can manage near-term volatility. The stock ended up 9.9 per cent at Rs 375.95 on Friday.


. ICICI Securities has maintained buy rating on Brigade Enterprises and cut target price on Rs 220 from Rs 323. Owing to Covid impact, the brokerage expects Brigade Enterprises' operations to see significant near term impact as well as weaker incremental office leasing, ongoing mall shutdowns, delay in residential launches impact cash flows. The brokerage remains bullish on long term prospects. The stock ended up 1.8 per cent at Rs 134.90 on Friday.

. Haitong Securities has initiated coverage on PI Industries with a buy rating and target price of Rs 1,721. PI Industries' debt free balance sheet offers high level of comfort, said Haitong. The company is entering a rapid phase of growth and deserves a higher valuation. The brokerage expects revenue and PAT CAGR of 21 per cent and 24 per cent over FY19-22, respectively. The stock ended down 3 per cent at Rs 1,418.80 on Friday.

. Kotak Institutional Equities has maintained buy rating on Mahindra & Mahindra and cut target price to Rs 625 from Rs 815. The brokerage expects the near term to remain challenging for the company given Covid-19-led uncertainties. However, the brokerage expects tractor demand to recover once the situation stabilises on record rabi corp output. The core business is trading at 4.7 times FY22 estimated EPS which is very cheap, said Kotak Institutional. The stock ended up 1.8 per cent at Rs 363.20 on Friday.