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Analyst Calls: Bajaj Consumer, Inox Leisure, MCX, ACC, SBI Life

Antique Stock Broking has maintained buy rating on Bajaj Consumer Care with a target price of Rs 373.

ET Bureau|
Oct 17, 2019, 07.34 AM IST
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Jefferies has maintained buy rating on SBI Life Insurance Company and revised target price to Rs 988 from Rs 918.
Good morning!

The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 3.50 points lower this morning, signalling a tepid 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 Bajaj Consumer Care with a target price of Rs 373. Antique has reduced its FY20 and FY21 EPS forecast on Bajaj Consumer by 8 per cent and 15 per cent respectively on account of cut in revenue estimates, lower EBITDA margins (due to loss of scale benefits) and increase in interest outgo. Due to the continued underperformance in revenue, pressure on margins and cut in earnings, the brokerage has reduced its target price to earnings ratio multiple to 20 times from 22 times on FY21 estimated EPS. The brokerage has mantained buy rating due to cheap valuations. Shares of Bajaj Consumer Care ended up 20 per cent Rs 234.65 on Wednesday.

• Edelweiss has initiated coverage on Inox Leisure with a target price of Rs 475. Inox Leisure is an attractive play owing to its aggressive expansion plans, premiumisation, and ramp-up of margin-accretive advertisement and food and beverage revenues, not to mention the closing gap with market leader PVR, the brokerage said. With a healthy balance sheet and negative working capital, the company is well placed to expand, it said. Shares of Inox Leisure ended down 1.3 per cent at Rs 328.80 on Wednesday.


• Morgan Stanley has maintained overweight rating on Multi Commodity Exchange of India and raised target price to Rs 1365 from Rs 1260. The brokerage likes MCX's dominant industry position, structural tailwinds to earnings led by regulation,nearterm visibility driven by cyclical factors,an asset-light business, and attractive valuation. Morgan Stanley expects the stock to double in three years. Shares of MCX ended up 1 per cent at Rs 1026.70 on Wednesday.

• Kotak Institutional Equities has maintained reduce rating on ACC and revised fair value to Rs 1500 from Rs 1453 due to rolling forward of valuations to September 2021. ACC reported in-line EBITDA in the third quarter with lower costs offsetting weaker realisations and lower volumes, the brokerage said. ACC continues to lose market share with 2 per cent YoY volume decline in the third quarter against estimate of flat volumes for the industry. Cement price remains weak and the brokerage expects it to offset pet coke cost benefits in the coming quarters. Shares of ACC ended up 1.5 per cent at Rs 1521.40 on Wednesday.

• Jefferies has maintained buy rating on SBI Life Insurance Company and revised target price to Rs 988 from Rs 918. In terms of distribution, SBI Life is the most strongly positioned insurer, the brokerage said. Exclusive distribution access with SBI and strong brand recall from its pseudosovereign identity give SBI Life a unique competitive advantage, said Jefferies. Shares of SBI Life Insurance Company ended up 4.5 per cent at Rs 877.40 on Wednesday.

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