Buy, Sell, Hold: 10 stocks are on analysts’ radar today

South Indian Bank, Eveready, ITC and Bharti Airtel, among others, are being tracked by investors on Thursday.

South Indian Bank

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 38

The brokerage house observed that net profit beat was by lower-than-expected provisions, while asset quality has improved. Further, the management is focused on building a low-ticket loan book with steady balance sheet clean-up.

Tata Motors

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 593

Motilal Oswal said that JLR’s December 2017 wholesale volumes were in-line at 55,000 units. Further, region-wise, China reported strong volumes at 15,603 units, up 12.6% yoy. It also observed that growth in China is reflecting introduction of the long wheelbase Jaguar XFL and strong sales of F-Pace, Discovery Sport.

ITC

Brokerage: CLSA | Rating: Buy | Target: Rs 330

CLSA said that the stock see-sawed in 2017 due to flip-flop in tobacco prices. Further, it believes that the market has more than factored in a weak volume trend. It is concerned about overall GST collections and any impact of their shortfall on tobacco taxes.

Pidilite

Brokerage: CLSA | Rating: Sell | Target: Rs 870

CLSA said that rising competition, and raw material cost will impact growth. Further, it said that Astral has scaled up India adhesives portfolio & now competes with the company. Margin expansion appears to be at risk with a rebound in crude prices.

Max Fin

Brokerage: Nomura | Rating: Buy | Target: Rs 680

Nomura said that a risk of losing the tie-up with Axis Bank would be very negative. Further, the company is last in its pecking order among its covered stocks. It valued the company’s stake in Max Life at 15 percent discount.

Eveready

Brokerage: Nomura | Rating: Buy | Target: Raised to RS 556

Nomura said that core business growth trajectory is settling down and believes that revenue growth should come back to more normalised levels. Going forward, new businesses will be key drivers of growth.

Bharti Airtel

Brokerage: Nomura | Rating: Buy | Target: Rs 625

Nomura said that it expects EBITDA/NPAT to decline 5%/43% qoq. Further, it expects montly ARPU to drop to Rs 131, a drop of 10 percent quarter on quarter and 24 percent year on year.

Bharti Infratel

Brokerage: Nomura | Rating: Neutral | Target: Rs 422

The brokerage house said that tenancies could decline qoq as telcos consolidation takes toll. Further, it sees tenancies to decline by 3,300 in Q3.

Persistent Systems

Brokerage: Credit Suisse | Rating: Initiate Coverage with Outperform | Target: Rs 960

Credit Suisse said that strong technology credentials position it well as a digital play. It expects a strong earnings revival over FY18-20.

Bajaj Corp

Brokerage: Macquarie | Rating: Initiate with Outperform | Target: Rs 637

The brokerage said that re-rating was imminent on earnings pick-up & diversification. Further, strengthened core should help the company accelerate meaningful new launches. It estimates EPS CAGR of 154 percent in FY18-20.

Cap Goods

Brokerage: CLSA

CLSA said that channel checks in national highway programme point to material pick-up in 2018 awards. It sees NHAI awarding projects worth $15 bn in H1 Vs award of $9.6 billion In FY17. It is also highlighting bunching-up of awards to be margin positive.

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