TVS Motors, Zensar Technologies, Havells India, Wipro to HDFC Bank, 10 stocks you can bet on today
The benchmark indices on Dalal Street today, were trading on a cautious note. At around 1150 hours, the Sensex was trading at 36,423.67 down by 21 points or 0.06%, while the Nifty 50 was mostly subdued at 10,921.75 compared to its previous trading. Such performance was led by global peers, as stocks there fell the most in almost three weeks as rising pessimism that trade tensions with China will persist helped send technology and multinational companies tumbling. According to Standard Chartered report, Asian stocks followed their U.S. counterparts lower as rising pessimism that trade tensions with China will persist helped send technology and multinational companies tumbling.
Considering this, it becomes an utmost for an investor to make wise investment in equities. Hence, if you plan to buy or sell in equities today, then here's a list of 10 stocks that can be your bet on Dalal Street – from TVS Motors, Zensar Technologies, Havells India, Wipro, HDFC Bank and more.
Analysts at Elara Capital says, "We are impressed by the fact that even in 9MFY19, despite increasing commodity pressures and heightened competitive intensity TVS has reported a 20bp YoY increase in EBITDA margins. Other expenses/ vehicle has also been under control and commodity prices softening should benefit gross margins in coming quarters." They added, "We largely retain our FY19-21E
EBITDA for TVS. With an expected EPS CAGR of 27% over FY18-21E, TVS remains one of highest earnings growth company in listed Auto OEMs.
We reiterate Buy with a new TP of INR 685 (earlier INR 663) based on 25x weighted avg FY20-21E P/E as we roll forward." Image source: Twitter/tvsmotor
In Elara Capital's view, Zensar announced divesture of its RoW business except for four contracts with government entities in India that are non-transferable and will be completed in two quarters. After factoring in the decline in lower margin in the non-core business, we increase EBITDA margin by 73bp for FY20E and 14bp for FY21E, but decrease it by 22bp for FY19E, given the miss in 3QFY19.
It added, We lower revenue by 0.6% 2.8% and 2.2% for FY19E, FY20E and FY21E, respectively. We retain Buy with a TP of INR 280 on 15x FY20E P/E. Image source: Twitter/Zensar
Havells continues to gain market share in most of the segments it is present. The company has constantly derived growth by launching new product segments and entering new categories.
Yes Securities says, "We expect earnings growth would remain strong over the next two years led by improving reach and introduction of new products in consumer segment. We have marginally upgraded our estimates in corporating strong Q3FY19 and rationalisation of commodity prices."
Further, Yes Securities added, "The company would continue to trade at a premium to its peers due to its strong brand positioning, diversified product portfolio and healthy return ratios. We value the company at 40x FY21 P/E and recommend ADD with a 1-year price target of Rs 767." Image source: Twitter/havellsindia
L&T Finance Holding
Research Analysts at Narnolia Financial Advisors said, "L&TFH is set to deliver 21% loan CAGR over FY18-21E, AUM growth will be driven by growth in rural and home loans segment going forward. Amid the recent crisis in NBFC, L&TFH robust growth in rural portfolio has led by gain in market share in 2W & Tractor segment. L&TFH has successfully transferred rise in the cost thus margins remain intact on the rising interest scenario. Due to focus of management on rural and retail financing we expect OPEX to remain elevated."
They added, "Real estate book is experiencing stress due to postponement of demand & liquidity issue. Exposure to Supertech (Rs 800 Cr) remained standard. Exposure to IL&FS (Rs 1800 Cr) SPVs though remain operational has started defaulting in its loan servicing we will keep a close watch on the 28th Jan NCLAT hearing. The stock is currently trading at 1.7x BVPS FY20e. We maintain BUY on the stock with the target price of Rs 175." Image source: Twitter/Intfsonline
IDBI Capital said, "We factor Q3FY19 result & lower revenue growth for Q4FY19 and cut our FY19/20 revenue growth (US$) forecast by -0.8%/-3.2%. However, we increase our EPS forecast for FY19/20 by 5.1%/6.5% now forecasting a CAGR of 10.8% over FY18-20E. We maintain REDUCE with new TP of Rs304 based on PER of 14x FY20E." Image source: Twitter/Wipro
Kotak Mahindra Bank
Analysts at Karvy Stock Broking sees pressure points at the core for this bank. They added, " While we see pressure on core retail spreads, the same got negated by liquidity management (high C/D & ID ratios) and higher other interest income. We had assessed the bank to be largely past the productivity benefits from the acquired branches, the pick-up in branch expansion and costs growth this quarter cements that view."
While the Savings Account growth is relatively healthy however Karvy note the same came with continuing inch up in Average Cost of SA suggesting led by non-granular accounts.
Thereby, Karvy says, " We maintain Strong SELL on the stock with the revised target price of Rs 910 (earlier Rs 930) valuing core lending book at 2.9x FY20 P/B and subsidiaries at Rs 253 per share."
On the other hand, Nirmal Bang revised estimates for FY19/FY20/FY21 and have retained a Buy rating on KMB with a revised target price of Rs1,559 (from Rs1,558 earlier) and valuing the stock at 4.0x 1HFY21E P/BV. Image source: Twitter/KotakBankLtd
Emkay in its research note says, "The company announced delays in the shaft commissioning of its flagship zinc mine at Rampura Agucha by two months, the shaft commissioning at the SK mine by a quarter (pushed to 4QFY19), and the completion of the Fumer Plant project by two quarters.
We maintain our Hold rating on the stock with a revised target price of Rs270, reflecting the current downtrend in non-ferrous prices driven by the slowdown the Chinese economy and accounting for delay in projects." Image source: Twitter/hindustan_zinc
Emkay upgraded FY19E EPS by 3.8% while keeping our FY20/FY21 estimates largely
intact. Lack of pricing power remains a cause for concern for the cement sector.
Valuations at 16.7x/14.2x FY20/21E EV/EBITDA look rich. We maintain our Hold rating.
A price target of Rs 17,742 is set for Shree Cements. Image source: Twitter/shreecementltd
Analysts at Karvy in their research note stated that, the bank used the opportunity from high treasury gains to make higher contingent provisioning towards the pain it sees in agriculture book. With capital raise and pending built-up in financial leverage we estimate ROEs at 16.5%/16% in FY19E/FY20E.
They added, "We expect the stock to offer a better price point for entry and maintain HOLD on the stock with the revised target price of Rs 2235 (3.7x FY20E P/B). Image source: PTI
South Indian Bank
Nirmal Bank has revised estimates for FY19/FY20/FY21 and have retained Buy rating on SBL, revising our target price to Rs 20 (from Rs 21 earlier) and valuing the stock at 0.6x 1HFY21E P/BV.
It added, "South Indian Bank (SBL) reported 3QFY19 results with the key takeaways being: (1) Excluding Rs 4bn slippage pertaining to IL&FS group, NPA addition of Rs 2.59bn remained
moderate compared with a 10-quarter average (ending 1QFY19) of Rs4.96bn, (2) NIM displayed a 5 bps rise QoQ to 2.66% with MCLR re-repricing still to play out. (3) Loan book continues to retailise in a meaningful way with core retail book growing 29% YoY." Image source: Twitter/OfficialSIBLtd