Analyst Calls: Tech Mahindra, Astral Poly Technik, Bharti Airtel

Good morning!

The domestic stock market on Tuesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 73 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.


IIFL has maintained buy rating on Tech Mahindra with a target price of Rs 850. While Tech Mahindra has underperformed large cap peers yearto-date, it has maintained buy as it believes that valuation support and strong recovery in earnings in second half of FY20 offers attractive risk reward. The stock is trading at 30 per cent discount to large caps, offering 12 per cent compounded growth in earnings per share and 3 per cent dividend yield in FY21-22, said IIFL. The stock ended up 2.15 per cent at Rs 649.85 on Monday.

Jefferies has downgraded Astral Poly Technik to bold from buy and lowered target price to Rs 1,300 from Rs 1,335. The company's share price has showcased a sharp uptick of 45 per cent plus since October 2018, outperforming both Nifty and Midcap 100 and is trading at 50 times/37 times P/E on FY20/ FY21, said Jefferies. While Astral Poly Technik as a robust business, most positives seem largely priced in at current valuations, said Jefferies. The stock ended down 0.4 per cent at Rs 1,215 on Monday.


Edelweiss has maintained buy rating on Bharti Airtel and revised target price to Rs 414 from Rs 406. Bharti is taking advantage of Vodafone Idea’s relatively weak network to consolidate most of the data users, said Edelweiss. The brokerage said Bharti Airtel is well positioned to take advantage of pricing improvement in the smartphone segment, which Reliance Jio is likely to initiate from Q4 FY20. Stability in subscriber base, bundled offerings and agile pricing will help Bharti maintain growth momentum, said Edelweiss. The stock ended up 4.5 per cent at Rs 359.10 on Monday.