Analyst Calls: JB Chemicals,India Grid Trust, Titan, L&T Infotech

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 10 points lower this morning, signalling a tepid start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.


• Edelweiss has initiated coverage on India Grid Trust and revised target price to Rs 113 from Rs 105. India Grid has corrected 12 per cent since its IPO, primarility due to thin liquidity and rise in interest rates, said Edelweiss. Stock exchanges have approved the lot size to one third to 1701 units from September 30 which should aid some liquidity, said Edelweiss. India Grid Trust ended down 0.55 per cent at Rs 91.20 on Friday.

• ICICI Securities has retained buy rating on JB Chemicals & Pharmaceuticals and revised target price to Rs 498 from Rs 476. Recent meeting with the management has reinforced positive stance on the company, said ICICI Securities. The recent announcement of corporate tax cut would increase rofit by 4.6 per cent for JB Chemicals, the brokerage said. Shares of JB Chemicals ended up 1 per cent at Rs 355.90 on Friday.


• Kotak Institutional Equities has retained add rating on Mahindra Logistics and revised fair value to Rs 400 from Rs 387. Mahindra Logistics in its recent analyst meet revealed its focus on deepening and mobilising capabilities and of using digitisation to bundle such capabilities with the core strength of network optimization, said Kotak Institutional. Related business benefits would be gradual and will start reflecting more in financials once effects of slowdown in auto demand and related cash flow support to vendors start receding, the brokerage said. Shares of Mahindra Logistics ended up 0.4 per cent at Rs 373.60 on Friday.

• Citigroup has maintained buy rating on L&T Infotech and cut target price to Rs 1800 from Rs 1825. L&T Infotech has a strong management team and is executing well vs other IT mid-caps, said Citigroup. Near term, investors will focus on growth given client-specific issues and macro, said Citigroup. Another common investor question remains around the MindTree merger, it said. From a medium-term perspective, Citigroup expects the company to deliver better growth vs peers. Shares of L&T Infotech ended up 0.75 per cent at Rs 1518.45 on Friday.

• Morgan Stanley has maintained overweight rating on Titan Company and raised target price to Rs 1450 from Rs 1300. Corporate tax cuts will increase Titan’s earnings by over 5 per cent with a potential sharp increase in dividend payout and consequent improvement in return ratios, said Morgan Stanley. Strong growth in a difficult macro environment can help sustain the current high stock valuations, said Morgan Stanley. Shares of Titan Company ended down 0.3 per cent at Rs 1284.35 on Friday.