Brokers' call on JSL, Cadila, L&T

Phillip Capital Neutral on JSL

International brokerage Phillip Capital has maintained its neutral ratings on Jindal Saw with a price target of Rs 125 per share. JSL’s shares closed at Rs 119 at close on Thursday. JSL has big capital requirement in Jindal ITF which may lead to higher leverage for the company in the coming quarters. “Although we believe in the long run the commencement of production from the captive mines and ITF becoming profitable will help the company in unlocking value for the share holders, in the near term (9-12 months) we continue to believe that the stock will remain under pressure,” the report said.

HSBC Overweight on Cadila

HSBC Global Research has maintained its overweight rating on Cadila Healthcare with a price target of Rs 1,020. The pharma major is currently trading at Rs 829.60 on the BSE. “We remain overweight on Cadila Healthcare on the back of emerging complex differentiated pipeline in US,” the report said. Key risks to the stock include slowdown in key geographies, pharma pricing policy risk, delay in drug approvals and appreciation of rupee.

L&T Downgraded

One of the items appeared in this column on November 8, 2012, erroneously said Credit Suisse Scales Down L&T to Neutral whereas L&T was downgraded to 'Underperform' from 'Neutral'. We regret the error.