Tuesday, 12 September 2017

Buy, Sell, Hold: 10 stocks and 1 event are on investors’ radar

Tata Steel, IndusInd Bank, and ICICI Bank, among others are being tracked by investors today.

stock free tipsTata Steel

Brokerage: PhillipCap | Rating: Buy

The brokerage firm said that RAA nod from pension regulators is a positive for the stock and this final approval was the last key milestone for pension resolution. Further, it expects Thyssen JV to be announced soon post after this approval.

Brokerage: HSBC | Rating: Buy | Target: Rs 750

HSBC said that the approval of Registrar Accreditation Agreement now paves the way for merger with Thyssenkrupp. In fact, this merger will consolidate European steel industries further. The merger could help unlock synergies, it added. indian stock tips

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 741

The global research firm said that the pension issue is resolved and the focus now shifts to the potential JV with Thyssenkrupp. The merger will be a positive for both companies, it added.

Axis Bank

Brokerage: Edelweiss Securities

The brokerage observed that the bank had strong retail loan book growth and expects corporate loan growth to recover. Further, it said that the lender had stable asset quality and NPA issues have bottomed out. It recommends holding from a long term perspective.

HDFC Bank

Brokerage: Edelweiss Sec | Rating: Hold

The brokerage observed that the stock was maintaining a minor drawdown in its upward move. It saw crucial supports at Rs 1,780 / Rs 1,750.

ICICI Bank

Brokerage: Edelweiss Sec

The brokerage said that continued traction on retail loans & corp book recovery augur well for the stock. It expects margin to improve due to improving liability and asset mix. Additionally, it said that the asset quality was stable and is expected to improve. In fact, the bank is an interesting value unlocking play. It sees major resistance at Rs 320, while crucial support is seen at Rs 290.

Kotak Mahindra Bank

Brokerage: Edelweiss Sec

Edelweiss Securities said that the bank had among the best underwriting standards in the banking industry. The medium term trend for the lender is up and momentum oscillators have turned bullish. Moreover, its price pattern suggests that it can move towards Rs 1,200 in the medium term.

Deccan Cements

Brokerage: ICICI Securities | Target: Rs 700-725

ICICI Securities sees sales and EBITDA growing at a CAGR Of 9.9% & 21.4% over FY17-19. It has assigned an EV/EBITDA multiple Of 6.5-6.7x For FY19.

Cochin Shipyard

Brokerage: ICICI Sec | Rating: Buy | Target: Rs 725

It expects revenue, EBITDA & PAT CAGR of 14.2%, 13.3% & 10.5% For FY17-19. It values the company at 25x FY19 EPS of Rs 29.

IndusInd Bank

Brokerage: UBS | Rating: Neutral | Target: Rs 1,800

UBS sees merger with Bharat Financial Inclusion to be EPS accretive by FY19-20. The neutral rating is due to existence of NPL risks from mid-corp segment.

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,625

The global research firm said that the Bharat Fin merger could increase bank’s RoA by 9 bps and the merger could increase the bank’s MFI exposure to 10 percent of loans. Having said that, it does not expect a boost to CASA ratio from the merger.

Brokerage: IDFC Securities | Rating: Overweight | Target: Rs 1,725

IDFC believes that the merger will be capital accretive, positive on RoE and RoA on FY18/19. It expect swap ratio of 1.6-1.7 shares of Bharat Fin for every share of IndusInd Bank.

IndusInd Bank-Bharat Fin

Brokerage: Deutsche Bank

The bank sees an imminent deal between the two entities, which could be a positive. It added that long-term effects are immense as IndusInd becomes a dominant player in MFI space.

HUL

Brokerage: Jefferies | Rating: Assume coverage at buy | Target: Rs 1,320

Jefferies likes the company’s execution on product innovation & steady distribution expansion. Volume growth, rise in margin should underpin 16.7% EPS CAGR in FY17-20.

Coal India

Brokerage: Morgan Stanley | Target: Underweight | Target: Rs 221

Morgan Stanley said that a volume growth recovery is likely and is factored in its estimates. It said that units were expected to raise inventory to normalised levels in coming months and any potential increase in the cost vs guidance key for stock performance.

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