Here’s how brokerages rate specific sectors
IDFC Securities on GSK Pharma:
Despite likely turnaround, rich valuations and limited triggers would cap upside.
Reiterates UNDERPERFORM, target at Rs 1,185/share.
Maintain FY19/20 earnings estimates.
Macquarie on Jubilant Life:
Even as LSI is recovering, pharma business continues to deliver.
Pharma contribution to EBITDA at 81 percent in Q2FY19 vs 65 percent in Q2FY18.
Remain bullish on the stock; it’s top midcap pharma pick.
Maintain outperform, target cut to Rs 1,038 from Rs 1,192/share.
Stock is trading at attractive FY20 PER Of 10x.
IDFC Securities on Hindustan Zinc:
UNDERPERFORM rating, target cut to Rs 243 from Rs 256/share.
H2FY19 EBITDA is expected to be up 30 percent from H1FY19.
Deutsche Bank on Hindalco:
Reiterates BUY, target raised to Rs 295 from Rs 280/share.
Record deficit to underpin aluminium price strength.
Raise FY19/20 earnings estimate by 9/12 percent.
For every Rs fall vs $, company’s EPS rises by 4.5 percent.
Macquarie on Hindustan Zinc:
Higher cost guidance to weigh on earnings.
Commodity prices to remain unfavourable.
Reiterates UNDERPERFORM, target at Rs 253/share.
Credit Suisse on Hindustan Zinc:
Maintains NEUTRAL, target at Rs 295/share.
High interim dividend reflects reinvestment challenges.
FY19/20e EPS falls 14 percent/8 percent.
Do not assume any further dividend payouts this year.
Problem of excess cash and challenge to find avenues for reinvestment caps upside.
FY19 volume guidance looks steep, remain cautious.
HSBC on Inox Leisure:
Reported lower box office revenue growth vs the industry.
Other revenue streams continued growth momentum.
Screen addition was also healthy.
Maintains BUY call with a target of Rs 335/share.
Cut FY19 earnings estimates on the back of lower footfalls.
Macquarie on IndusInd Bank:
Maintains OUTPERFORM, target at Rs 1,975/share.
Bank has strong loan growth and earnings power.
Bank can easily manage some of the recent issues well
Track record of managing asset quality has been good
It does not expect any large divergences in RBI audit and this is encouraging.
ROAs & ROEs will get a fillip after the acquisition and integration of Bharat Fin.
Axis Cap on Hindustan Zinc:
Downgrades to HOLD from Buy, target cut to Rs 301 from Rs 309/share.
Increase EPS estimate for FY19/20 to Rs 24/25.
Expect multiples compression across sectors going ahead.
Cost of production for zinc remains high.