CLSA goes bullish on these stocks! HCL Tech, Infosys, Tech Mahindra, Ashok Leyland and Hindalco
Diwali 2020 festive season is in full swing and stock markets in India too are participating whole-heartedly as is evident from skyrocketing Sensex, Nifty and other indices. Big brokerage CLSA has done some research and it has identified a number of stocks that it is bullish on or wants investors to watch carefully. So, from HCL Tech, Infosys, Tech Mahindra, Ashok Leyland and Hindalco, here is a list:
Diwali 2020 festive season is in full swing and stock markets in India too are participating whole-heartedly as is evident from skyrocketing Sensex, Nifty and other indices. Big brokerage CLSA has done some research and it has identified a number of stocks that it is bullish on or wants investors to watch carefully. So, from HCL Tech, Infosys, Tech Mahindra, Ashok Leyland and Hindalco, here is a list:
CLSA maintains bottom up bias for HCL Tech, Infosys, and Tech Mahindra in that order.
The beat, like in Q1 FY21, was driven by transient factors, most of which could reverse as the operative environment normalises. Thus, optically rich valuations and low probability of fresh triggers in a seasonally soft Q3 FY21 could keep the stocks ranged in the near term.
LSA reiterated buy rating on Ashok Leyland, raised target price to Rs 102 from Rs 94
CLSA remains constructive on Ashok Leyland as it is a pure play on the improving truck demand cycle in India. Strong EBITDA margin was driven by better than expected gross margins as well as lower employee and other expenses.
CLSA reiterates Buy rating on Hindalco, lifts their target price to Rs 270 from Rs 225
The key disappointment from the results was a much lower realisation from divestment of auto facilities. CLSA raised the EBITDA forecast by 8-12% on better earnings going forward.