Antique Stock Broking has maintained buy rating on Jindal Steel & Power with a target price of Rs 136.
Sep 12, 2019, 07.30 AM IST
The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 40 points higher this morning, signalling a good start for Dalal Street.
As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.
• Antique Stock Broking has maintained buy rating on Jindal Steel & Power with a target price of Rs 136. Steel profits would be aided with ramp up of volumes at Angul, lower coking coal costs and value-added product mix, said Antique. Leverage levels would continue to improve driven by operational free cash flows, the brokerage said. Antique has valued the stock at 5.2 times its FY2021 estimated earnings for the steel business and free cash flow to equity-based valuation for the power business. The stock ended up 12.74 per cent at Rs 107.50 on Wednesday.
• CLSA has retained sell rating on Ashok Leyland and lowered target price to Rs 40 from Rs 50. The slowdown in the Indian truck industry has intensified in recent months; not only the downturn will persist but also see risk of an elongated cycle, said CLSA. In the past two truck downcycles, which lasted 27-28 months, Given that the current downturn is only 10 months long so far and the stock is still trading at 2 times price-to-book, it is too early and the stock is too expensive to call for a bottom, said CLSA. The stock ended up 1.3 per cent at Rs 63.70 on Wednesday.
• HSBC has maintained hold rating on Glenmark Pharmaceuticals with a target price of Rs 435. While the current share price factors in most negatives, HSBC sees limited upside from here unless Glenmark Pharmaceuticals delivers notable operational improvements and debt reduction. Realisation of the API stake sale and divesting non-core assets can ease the debt burden, though the timing is uncertain, the brokerage said. The stock ended flat at Rs 384.70 on Wednesday.
• Ambit Capital has a buy rating on Capacit’e Infraprojects and it has lowered target price to Rs 315 from Rs 384. Capacit’e won Rs 45 billion affordable housing order from CIDCO for execution over 3.5 years, said Ambit. This is one of four packages awarded to 4 of 5 eligible players with experience in modern formwork technology, said Ambit. The brokerage estimates affordable housing in Maharashtra can be a Rs 840 billion opportunity. Capacit’e can be key beneficiary and among few contractors who qualify to bid, said Ambit. The stock ended flat at Rs 210.70 on Wednesday.
• Anand Rathi has retained buy rating on Dilip Buildcon with a target price of Rs 586.To monetise five of its twelve newer hybrid annuity projects, Dilip Buildcon has executed an agreement with Cube Highways, the brokerage said. This is in sync with its strategy to focus on its strength as an EPC contractor rather than as an asset holder, the brokerage said. The stock ended up 7.2 per cent at Rs 455.80 on Wednesday.
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