Brokerage: Prabhudas Lilladher | Rating: Reduce | Target: Rs 495
The brokerage observed that the bank had an operationally weak quarter, while asset quality issues still linger. The net interest income was soft on the back of sharp fall in yields of 40-50 basis points quarter on quarter. Meanwhile, credit costs, it said, continued to remain at the upper end of the guidance.
Brokerage: IDFC Securities | Rating: Neutral
IDFC Securities said that the slippages outside the watchlist was discomforting and this will be volatile across quarters. The neutral stance is on the back of weak core operating profit and Persistent Corporation stress. Further, the company could raise fresh equity in 12-18 months.
Brokerage: CLSA | Rating: Outperform | Rating: Increased to Rs 600
The global research too said that it was disappointed on the asset quality fall outside the watchlist. A moderation in NPLs is the key to its earnings, the firm added. Going forward, it will be a key to sustain high CASA growth and it expects profit to improve from this fiscal.
Brokerage: CLSA | Rating: Buy | Target: Rs 560
CLSA said that the key positive in the first quarter was the strong growth in premiums. A healthy growth in the protection business will be the key to expansion in margins. Further, it raised premium growth forecasts to 24 percent CAGR. It expects VNB margins to expand towards 15 percent over FY17-20.
Brokerage: CLSA | Rating: Buy | Target: Rs 950
CLSA said that most verticals had recovered to growth and the organic growth could just be shy of 10 percent year on year growth in this fiscal. It upgraded revenues by 2 percent, but cut margins by 150/50 basis points for FY18/19. Meanwhile, the earnings per share (EPS) estimates for FY18/19 were cut by 12/7 percent. Further, it added that the stock is an attractive play on secular growth in engineering services.
Brokerage: CLSA | Rating: Buy
CLSA said that the metals and mining major’s EBITDA was 5 percent below estimates, led by lower margins in aluminium and copper. The June quarter results, it said, were impacted by plant outages in aluminium and power divisions. These divisions should normalise in the coming quarter, it added.
Brokerage: CLSA | Rating: Sell | Target: Rs 2,950
The brokerage house said that the company maintained its guidance of high single-digit industry growth for this fiscal. Moreover, the management continues to expect the margin to slip to 14-15 percent in the medium term. It sees lackluster earnings growth post FY18.
Brokerage: CLSA | Rating: Underperform | Target: Increased to Rs 444
The research firm raised its earnings estimates by 2-9 pernet to factor in lower depreciation. The rating has been retained due to continued risks to India’s average revenue per user (ARPU).
Brokerage: CLSA | Rating: Sell | Target: Increased to Rs 1,080
CLSA said that GST had an expected impact but the outlook is better now. The 20 percent year on year earnings decline was the worst in over a decade. Further, the management commentary was soothing as July has seen an improvement. The impact of most recent price hikes and rupee appreciation should help, it added. The brokerage further cut FY18-19 EPS estimates by 3-5 percent.[“Source-moneycontrol”]