Analyst Calls: Polycab, Sun TV, Sun Pharma, M&M, BPCL

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 42 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.


. Edelweiss has initiated coverage on Polycab India with a target price of Rs 845. Polycab India is a leader in the domestic cables and wires (C&W) sector with significant lead in capacity as well as revenue market share, said Edelweiss. The company’s healthy prospects in C&W, driven by government’s sustained focus on infra and strengthening retail business through ramp up in the FMEG segment, will drive healthy 23 per cent earnings CAGR and 20 per cent plus ROCE over FY19-21. Shares of Polycab India ended up 5 per cent at Rs 704.35 on Tuesday.

• IIFL has maintained buy rating on Sun TV Network with a revised target price of Rs 567. The brokerage said in its recent interaction, management was positive on subscription-revenue outlook, but saw flattish adrevenue growth in FY20 due to weak consumer sentiment. Sun is working on improving its viewership share in core markets. Sun may see upsides from the IPL in the long term. Shares of Sun TV ended up 2 per cent at Rs 490 on Tuesday.


• CLSA has retained buy rating on Sun Pharmaceutical Industries with the target price of Rs 540. Assuming 7-10 per cent market share over a 3-4 year period, Cequa has the potential to generate peak sales potential of $100 million - $125 million, it said. Starting FY17, Sun has launched six specialty products in the US and these products should ramp-up over the next few years, said CLSA. Sun’s balance sheet strength should enable it to consummate more deals for developed markets. Shares of Sun Pharma ended up 0.5 per cent at Rs 396.60 on Tuesday.

• Reliance Securities has retained buy rating on Mahindra & Mahindra with a target price of Rs 650. The brokerage expects M&M to continue gaining market shares in LCVs and tractors on the back of strong product portfolio, though it would face challenges in UV space. Success of XUV300 would drive M&M’s UV volume and profitability, said Reliance Securities. The company plans to focus on new technology and EV platform. Shares of M&M ended up 2.8 per cent at Rs 584.60 on Tuesday.

• Citigroup has maintained buy rating on Bharat Petroleum Corporation and raised target price to Rs 550 from Rs 475. Some political parties and trade unions have already started opposing the proposed move to privatise BPCL. With the stock up 38 per cent in two months, investors are treading with caution but the final outcome will depend on the government’s willingness to get this done. News flow could stay supportive and would advise investors to stay invested. Shares of BPCL ended up 0.9 per cent at Rs 490.25 on Tuesday.