Brokerage Radar: CLSA on pharma and telecom sectors
1/3
CLSA ON BHARTI AIRTEL
>> Focus on ramping-up 4G data subscribers
>> An unlikely disruption of fixed-line broadband
>> No compulsion for further asset sales
>> Favourable risk-reward; retain BUY
>> Raises target price from Rs390 to Rs415
>> An unlikely disruption of fixed-line broadband
>> No compulsion for further asset sales
>> Favourable risk-reward; retain BUY
>> Raises target price from Rs390 to Rs415
2/3
CLSA ON INDIAN PHARMA
>> Second consecutive month of double-digit growth, TTM growth at 11%
>> Growth momentum continues, with IPM growing 13.7% YoY in August
>> Ipca saw strongest growth (within coverage) followed by Glenmark and Dr Reddy’s
>> Growth momentum continues, with IPM growing 13.7% YoY in August
>> Ipca saw strongest growth (within coverage) followed by Glenmark and Dr Reddy’s
3/3
CLSA INDIA STRATEGY
>> Investor and corporate commentary has been weak
>> EM flows could improve as yields vs PE equation looking better
>> Global investors still overweighted on India
>> PSU banks have started buying portfolios from NBFCs under the “backstop” scheme
>> Govt may bring in netting legislation during the next parliament session
>> Govt may offer demand incentives going forward for property sector
>> Among laggards, there is incremental FII interest in autos, pharma and PSUs
>> Flows to EMs, India could improve is Fed cuts more than 50bps
>> EM flows could improve as yields vs PE equation looking better
>> Global investors still overweighted on India
>> PSU banks have started buying portfolios from NBFCs under the “backstop” scheme
>> Govt may bring in netting legislation during the next parliament session
>> Govt may offer demand incentives going forward for property sector
>> Among laggards, there is incremental FII interest in autos, pharma and PSUs
>> Flows to EMs, India could improve is Fed cuts more than 50bps