Here’s what brokerages are saying on Shriram Transport, Tech Mahindra, Pharma
Nomura on CONCOR:
Maintains BUY call, target at Rs 800 per share.
Railways cuts haulage charge for empty containers and empty wagons by 25%.
Cut in empty charges is a key positive.
Company had incurred Rs 122 crore in empty running costs in H1FY19.
On a full-year basis, estimate Rs 60 crore lower empties cost.
Edelweiss Finance on Shriram Transport:
BUY call, target at Rs 1422 per share.
Kotak Institutional Equities on Tech Mahindra:
Retains ADD call, fair value at Rs 865 per share.
Company see telecom business growth of 5-7% in FY20 W/o 5G contribution.
5G opportunity can be large with revenue flow uptick in FY21.
Predictability is returning to operations and financial performance.
Early investments position the company well for 5G opportunity.
Margin in FY20 will at least match FY19 levels.
CLSA on Pharma:
Indian pharma market growth at 6% YoY in November against 15% in October
Growth on a TTM basis remains robust at 11%.
Contribution of pricing to growth turned positive after a long time.
Cipla and Lupin grew ahead of market whereas Sun Pharma’s growth trailed market.
Dr Reddy’s Labs witnessing above industry growth over the last few months.
Expect domestic market to witness 10-12% growth in FY19.
Edelweiss Finance on Shriram Transport:
Target at Rs 1,422 per share.
Expect moderation in credit cost on account of containing slippage going forward.
Liquidity position comfortable and valuation is attractive.
Major contributor to growth will be rural market.
Expect AUM to grow at 18% CAGR between FY18-FY20.
Edelweiss Finance on Ashoka Buildcon:
BUY call, target at Rs 201 per share.
Company committed Rs 150 crore in equity in its city gas distribution arm.
City gas partnership a positive development for company.
Valuation attractive at current levels.
Company can grow its CGD business while reducing its own equity commitment.
Healthy order book, a lean B/S and robust traffic growth key positives.