Brokers' call on Hindalco, Idea, Suzlon, RIL
In his latest strategy report, Manishi Raychaudhuri, MD and head of research at BNP Paribas Securities, says Q3 earnings were slightly better than expected.
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BNP Paribas’ top picks: Hindalco, Idea
In his latest strategy report, Manishi Raychaudhuri, MD and head of research at BNP Paribas Securities, says Q3 earnings were slightly better than expected. He expects earnings downgrade should bottom out in Q4FY12.
BNPP says at 15x 12-month forward P/E, the market seems to have fully discounted the improving fundamentals. Hence, they recommend sticking to quality. On a top-down basis, the broker’s top picks are Hindalco, Idea Cellular and IRB Infra.
UBS upgrades Suzlon
UBS has upgraded Suzlon’s ratings to ‘Buy’ from ‘Sell’ and has raised the price target to Rs 45.
“We think large new orders address the issue of survival to some extent and the company should be able to manage the repayment of FCCBs. These are the two main reasons for our upgrade,” the UBS report said. In 3Q FY12, Suzlon’s order book stood at Rs 372 billion.
Kotak downgrades RIL
Kotak downgraded the ratings of Reliance Industries to ‘Reduce’ from ‘Add’ with a target price of Rs 855. Reports of further decline in gas production at RIL’s KG D-6 block do not augur well for downstream industries.
India’s gas supply situation will become even more precarious and several industries will have to use more expensive alternatives or make do with lower production.
In his latest strategy report, Manishi Raychaudhuri, MD and head of research at BNP Paribas Securities, says Q3 earnings were slightly better than expected. He expects earnings downgrade should bottom out in Q4FY12.
BNPP says at 15x 12-month forward P/E, the market seems to have fully discounted the improving fundamentals. Hence, they recommend sticking to quality. On a top-down basis, the broker’s top picks are Hindalco, Idea Cellular and IRB Infra.
UBS upgrades Suzlon
UBS has upgraded Suzlon’s ratings to ‘Buy’ from ‘Sell’ and has raised the price target to Rs 45.
“We think large new orders address the issue of survival to some extent and the company should be able to manage the repayment of FCCBs. These are the two main reasons for our upgrade,” the UBS report said. In 3Q FY12, Suzlon’s order book stood at Rs 372 billion.
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Kotak downgrades RIL
Kotak downgraded the ratings of Reliance Industries to ‘Reduce’ from ‘Add’ with a target price of Rs 855. Reports of further decline in gas production at RIL’s KG D-6 block do not augur well for downstream industries.
India’s gas supply situation will become even more precarious and several industries will have to use more expensive alternatives or make do with lower production.
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