Here are 17 stocks that brokerage firms have given investment calls.
Nomura stays cautious on the sector, says HCL Tech is the only buy call. It prefers Infosys amongst stocks having neutral ratings. It is cautious on growth/margin for tier-1 it given larger legacy exposure.
Deutsche Bank reiterates buy with a target of Rs 800 per share, indicating 17 percent upside potential based on FY16-19. It sees CAGR of 13 percent revenue and 24 percent EPS.
Nomura downgrades it to neutral from buy with target unchanged at Rs 3200 per share. It says valuations are at the upper end of our fair value estimate, expecting life business to struggle relative to bank linked insurers.
Nomura maintains buy call with target increased to Rs 1520 from Rs 1325 per share. It says the bank may deliver a 20 percent loan CAGR over FY16-19, adding specific SME sub-sectors may continue to see marginally elevated slippages. It says asset quality situation is very manageable.
Goldman Sachs says the company may post 7.7 percent margin in Q2 versus 7 percent in Q1 on improvement in product mix. Any near-term weakness in share price an opportunity to add positions.
Citi expects 8 percent dividend yield despite buyback, estimated at Rs 26 per share for FY17. It says if only government tenders its shares in buyback, holding would reduce to 79.3 percent. It adds payout looks secure even if entire buyback quantity is tendered.
Credit Suisse maintains outperform call stating it is a good play on growing gas demand. It has increased target to Rs 180 from Rs 165 per share.
Capital goods stocks
CLSA retains buy on L&T , IRB , J Kumar , Sadbhav Engg and NCC . Analysis shows slowdown in capex revival, indicated by backlog growth. It says backlog growth at 8 percent YoY versus 11 percent in March quarter. It says backlog growth stronger in construction, led by urban infra and roads.
HSBC maintains buy call but cuts target to Rs 690 from Rs 761 per share. It says anti-malarial sales should be strong in Q2 but branded markets growth outlook is at 25-30 percent for FY17. It says generics likely to flatten post Brexit impact on UK sales. US recovery dependent on Ratlam clearance, which is at least six months away.
JP Morgan is overweight on the stock with target at Rs 220 per share. It may be a case for re-rating as balance sheet improves & volume drives earnings.
Deutsche Bank has buy rating on the stock with target at Rs 1420 per share, expecting earnings CAGR of 35 percent over FY16-18. It says growth outlook strong, normalisation of credit costs to drive return on assets.
Macquarie says Bharti Infra is well placed to ride India’s data boom. It has outperform call on the stock with target at Rs 420 per share. It forecasts 11 percent free cash flow growth over FY16-19.
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