Analyst Calls: Lupin, Info Edge, Sanofi, CIL
Prabhudas Lilladher has upgraded Lupin to hold from reduce and raised target price to Rs 760 from Rs 730 .
The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 21 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.
• Prabhudas Lilladher has upgraded Lupin to hold from reduce and raised target price to Rs 760 from Rs 730 after the drug maker sold its Japanese generic business to a private equity investor named Unison at a valuation of $526 million. With strategy of focusing in complex generics, injectable and specialty products in US and acquisition of brands in US and India, Lupin is better off with divestment of nonfocus geography, said the brokerage. The stock ended down 1 per cent at Rs 728.70 on Wednesday.
• Jefferies has raised target price on Info Edge (India) to Rs 2330 from Rs 1985 while maintaining hold rating. Info Edge's second quarter revenue was largely in line with our estimate but EBITDA missed due to higher losses in Jeevansathi, said Jefferies. Weakness in non-IT hiring reflected in deceleration in Naukri billing growth. 99acres reported a profit but management did not commit to its sustainability, the brokerage said. The stock ended up 1.5 per cent at Rs 2602.05 on Wednesday.
• IDFC Securities has maintained outperformer rating on Sanofi India with a target price of Rs 7368. The brokerage has maintained rating on the stock given attractive valuations and steady improvement in operating performance. The stock trades at 20.7 times EV/ EBITDA and 31.2 times CY20 estimated price-to-earnings ratio, which are at discount to those of MNC peers like Glaxo, said IDFC Securities. The stock ended down 0.1 per cent at Rs 6599.95 on Wednesday.
• CLSA has retained buy rating on Coal India with a target price of Rs 270. Coal India’s earnings outlook is weak near-term given muted volume growth and e-auction prices coming off a high base, said CLSA. However, the brokerage still finds it a good defensive play given little demand risk, low commodity price exposure, a net cash balance sheet, strong cash flows and its 10 per cent dividend yield. The stock ended down 1.3 per cent at Rs 207.20 on Wednesday.
• Citi has maintained buy rating on Aurobindo Pharma with a target price of Rs 860. Aurobindo continues to outperform peers on growth and margins, courtesy its well diversified pipeline and superior execution in the US, said Citi.The brokerage expects this to continue and should drive outperformance over the longer term. Near term, the Street would remain focused on compliance outcomes (Unit IV inspection; corrective action at Units VII, I, IX and XI) and closure of the Sandoz deal.The stock ended down 1 per cent at Rs 433.40 on Wednesday.