Analyst Calls: Welspun Corp, L&T, Rallis India, Lemon Tree Hotels

Good morning!

The domestic stock market on Friday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 25 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.


• Kotak Securities has a buy rating on Welspun Corp with a target price of Rs 171. Welspun Corp's reported numbers in the second quarter were above estimates backed by stronger than expected performance from the US operations and sequential improvement in India operations, the brokerage said. In addition, to the strong operating performance, strong performance from the Saudi operations also supported PAT growth, the brokerage said.The stock ended flat at Rs 143.70 on Thursday.

• Prabhudas Lilladher has maintained buy rating on Larsen & Toubro and revised target price to Rs 1800 from Rs 1767. L&T reported strong set of numbers for 2QFY20 which were higher than estimates. The brokerage has maintained buy recommendation on L&T on the back of its strong business model with robust order book, diverse skill sets, strong execution capabilities and increased focus on improving return ratios by exiting noncore assets. The stock ended up 0.1 per cent at Rs 1431.90 on Thursday.


• Centrum Broking has maintained buy rating on Hexaware Technologies with a target price of Rs 410. Hexaware’s third quarter results were a miss on revenue front led by softness in a large BFSI client. PAT was in-line with estimates aided by forex gains, said Centrum. Hexaware has been facing challenges in select top accounts which has been weighing on revenue growth momentum, it said. Nevertheless, most midcap IT vendors are having a relatively softer performance in FY20, said Centrum. Valuations remain reasonable, it added. The stock ended down 5.5 per cent at Rs 346.25 on Thursday.

• Edelweiss has maintained buy rating on Rallis India with a revised target price of Rs 154. Rallis India reported weakerthan-expected second quarter results marked by a sharp contraction in gross margin, said Edelweiss. That said, a favourable demand scenario in international business supported overall top-line growth, said Edelweiss. The domestic situation continues to be uncertain due to the erratic monsoon this year, said Edelweiss. The stock ended up 0.2 per cent at Rs 163.25 on Thursday.

• Anand Rathi has initiated coverage on Lemon Tree Hotels with a target price of Rs 72. The stock is down around 35 per cent year-to-dateon the Keys acquisition, promoter-pledge disclosure and delays in securing approvals for some hotels, said Anand Rathi. The brokerage believes the risk reward is now favourable. Its strategy of vigorous expansion and its asset-light model augurs well for the long term, said Anand Rathi.