Brokerage Radar: Stock recommendations by global brokerages
1/7
CLSA ON HUL
>> 2QFY20 ahead led by margins, again; volume growth a shade better
>> Raises EPS estimates 1-2% and target price from Rs2,135 to Rs2,250
>> Strong margin gains in home care and personal care
>> Rural growth, as per industry reports, is now down to 0.5x of urban growth, the lowest in several years
>> Demand outlook is a bit challenging, with different states showing different trends
>> GSK deal is likely to close in 4QFY20
>> Extended support to trade partners and receivable days have gone up a bit
>> Liquidity concerns are higher at the retailer level, although large distributors are not much impacted
>> Volume growth at 5% YoY mirrored current weakness but looks good in the context of a sharper slowdown
>> Raises EPS estimates 1-2% and target price from Rs2,135 to Rs2,250
>> Strong margin gains in home care and personal care
>> Rural growth, as per industry reports, is now down to 0.5x of urban growth, the lowest in several years
>> Demand outlook is a bit challenging, with different states showing different trends
>> GSK deal is likely to close in 4QFY20
>> Extended support to trade partners and receivable days have gone up a bit
>> Liquidity concerns are higher at the retailer level, although large distributors are not much impacted
>> Volume growth at 5% YoY mirrored current weakness but looks good in the context of a sharper slowdown
2/7
CLSA ON NTPC
>> Khargone likely to drive double-digit YoY growth in regulated equity in FY20
>> NTPC strove to meet UN sustainability goals at Khargone
>> NTPC hopes to commercialize 1.32GW of Khargone during FY20
>> Double-digit YoY growth in regulated equity by 4QFY20 due to Khargone
>> Maintains a BUY rating, target at Rs 157
>> NTPC strove to meet UN sustainability goals at Khargone
>> NTPC hopes to commercialize 1.32GW of Khargone during FY20
>> Double-digit YoY growth in regulated equity by 4QFY20 due to Khargone
>> Maintains a BUY rating, target at Rs 157
3/7
CREDIT SUISSE ON PHARMA
>> Growth challenges persist in US generic market
>> RoCE to revive but only for a few
>> Pricing pressure may still be high single digit in US
>> Prefers Dr. Reddy's in the sector lead by ROCE improvement
>> Lupin has a good US pipeline, but key catalysts pushed to H1
>> RoCE to revive but only for a few
>> Pricing pressure may still be high single digit in US
>> Prefers Dr. Reddy's in the sector lead by ROCE improvement
>> Lupin has a good US pipeline, but key catalysts pushed to H1
Amazon Top Deals
POWERED BY
Crompton Ozone 75 Litres Desert Air Cooler for home | Large & Easy Clean Ice Chamber | 4-Way Air Deflection | High Density Honeycomb Pads | Everlast Pump | Auto Fill| 3 Year Brand Warranty
₹9,798Buy Now43%
OFF
atomberg Studio Smart+ 1200mm BLDC Ceiling Fan with IoT & Remote | BEE 5 star Rated Energy Efficient Ceiling Fan | High Air Delivery with LED Indicators | 3 Year Warranty (Earth Brown)
₹5,882Buy Now36%
OFF
LG 32 L Convection Microwave Oven (MC3286BRUM, Black, 360° Motorised Rotisserie for Bar-be-queing, 301 Auto Cook Menu, Stainless steel cavity, Indian Cuisine, Tandoor Se, Steam Clean & Diet Fry)
₹19,340Buy Now19%
OFF
4/7
CREDIT SUISSE ON HUL
>> Maintains Neutral Rating, Target at Rs 2180/share
>> Decent volume growth in a weak macro
>> Lower our FY20-22E earnings by 2-4%
>> Management stated industry growth deteriorated in Q2
>> Decent volume growth in a weak macro
>> Lower our FY20-22E earnings by 2-4%
>> Management stated industry growth deteriorated in Q2
5/7
UBS ON INDUSIND BANK
>> Maintains Neutral Rating, Target at Rs 2150/share
>> Revenue growth visibility unclear
>> Risk reward unattractive at present valuations
>> Price cuts + depressed demand env. = lower revenue outlook
>> Revenue growth visibility unclear
>> Risk reward unattractive at present valuations
>> Price cuts + depressed demand env. = lower revenue outlook
6/7
CITI ON SUN PHARMA
>> Maintains BUY rating, Target at Rs 540/share
>> Cequa launch in-line with Sun’s recent commentary
>> Expects launch to have favorable impact on margins
>> Cequa launch in-line with Sun’s recent commentary
>> Expects launch to have favorable impact on margins
7/7
UBS ON HUL
>> Maintains Neutral Raing, Target Rs 2150/share
>> Revenue growth visibility unclear
>> Risk reward unattractive at present valuations
>> Price cuts + depressed demand env. = lower revenue outlook
>> Revenue growth visibility unclear
>> Risk reward unattractive at present valuations
>> Price cuts + depressed demand env. = lower revenue outlook