Analyst Calls: Rallis India, Finolex Cables, Amara Raja Batteries

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 13 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.


• Emkay Global has maintained a buy rating on Rallis India and revised target price to Rs 215 from Rs 220. In its management meet, Rallis India highlighted margin recovery would be gradual as it will pass on the benefits of softening technical prices to B2B customers, said Emkay. The successful execution of capacity expansion and new product launches remain the key catalyst for stock re-rating, it said. Shares of Rallis India ended down 1 per cent at Rs 167.25 on Tuesday.

• Jefferies has maintained ‘hold’ rating on Finolex Cables and revised target price to Rs 400 from Rs 450. The company is primarily into cables & wires but diversification benefits are yet to accrue to margins or earnings per share, said Jefferies. Communication revenue largely depends on contracts and thus tends to be bulky in nature, said Jefferies. The brokerage believes that near term fiber capex cycle is largely behind. Shares of Finolex Cables ended up 3.8 per cent at Rs 370.50 on Tuesday.


• Kotak Institutional Equities has retained ‘add’ rating on Amara Raja Batteries and revised fair value to Rs 800 from Rs 720. The brokerage expects Amara Raja revenue growth to remain robust over FY19-22 led by (1) 10-16 per cent revenue CAGR in two-wheeler and four-wheeler replacement segment, (2) 15 per cent CAGR in the exports segment and (3) strong growth momentum in new segments such as motive power, e-rickshaws etc. Kotak Institutional expects EBITDA to remain around around 16 per cent led by a higher mix of the replacement segment. Shares of Amara Raja Batteries ended up 3.7 per cent at Rs 749.85 on Tuesday.