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Brokerage Radar: CLSA on financials and telecom sector

Capital infusion in PSUs and funding lines a plus, said CLSA.

ET Now|
Aug 27, 2019, 10.40 AM IST
Sector revenues growing with rising 4G penetration, said CLSA.
Here's a look at changes brokerages made to their price targets on stocks, and the sectoral commentary they made in the last 24 hours:

  • On an expansion trajectory but an expensive relative valuation
  • Westside on aggressive expansion trajectory
  • Zara remains a financial investment and growth is tapering off
  • Fund raising to support aggressive growth and valuation expensive
  • To raise Rs15.5bn in equity, (9.5bn via promoters) preff issue
  • Trading at a 34x FY21 EV/Ebitda and a 60x FY21 PE most expensive retail stock

  • Capital infusion in PSUs and funding lines a plus; push on rate cut a risk
  • Steps may be positive for housing finance companies (HFCs)
  • Support for auto demand and clarification on capital-gains taxation is also a positive
  • Govt seems to be pushing banks to pass on rate cuts
  • 5bps lower margin can drag FY20 sector earnings down 4%

  • Sector revenues growing with rising 4G penetration; prefer Bharti Airtel
  • Bharti Airtel’s is past peak capex & gearing comfortable at 3x/ebitda
  • Bharti best placed to play the sector’s recovery
  • 4G penetration is still low at 27-34% of incumbents’ subscribers
  • R-Jio is now the leading operator with 32% revenue share

Also Read

Telecom gear makers to feel the heat

Setting floor for telecom tariffs may not be practical: TRAI

China rolls out 5G telecom services

Fitch Ratings’ Nitin Soni on telecom sector in India

Government considers floor tariff for improving telecom health

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