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Top brokerage calls for April 11: Jefferies bullish on Havells, Whirlpool, UPL; Nomura 'neutral' on Wipro

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Jefferies expects a steady Q4 for midcap stocks, bullish on Havells, Whirlpool, UPL, and Graphite India. Nomura has retained a 'neutral' call for Wipro with a target price of Rs 270. Citi raises target price of media companies including Sun TV, Zee, Dish TV, and DB Corp.

Top brokerage calls for April 11: Jefferies bullish on Havells, Whirlpool, UPL; Nomura 'neutral' on Wipro
Indian shares are set to open higher on Thursday, a day after the benchmark indices plunged more than 350 points on the back of profit booking in banking and technology stocks.
Trading, however, is likely to be cautious ahead of the voting for the first phase of Lok Sabha elections starting today and quarterly earnings of IT majors Tata Consultancy Services and Infosys on April 12.
At 07:14 AM, the SGX Nifty, an early indicator of the Nifty 50's trend in India, was up 0.22 at 11,677, indicating a positive start for the Sensex and Nifty.
On Wednesday, the S&P BSE Sensex settled 353.87 points lower at 38,585.35 while the Nifty50 fell 87.70 points to end at 11,584.30.
Among brokerages, Jefferies expects a steady Q4 for midcap stocks, bullish on Havells, Whirlpool, UPL, and Graphite India. Nomura has retained a 'neutral' call for Wipro with a target price of Rs 270. Citi raises target price of media companies including Sun TV, Zee, Dish TV, and DB Corp. Morgan Stanley expects a strong quarter for most corporate and retail banks.
Here are top brokerage calls for Thursday:
Jefferies on Midcaps
- Expect a steady Q4 for most midcaps under coverage
- In electrical space, like Havells, V-Guard and Finolex Cables
- Amongst plastic companies, positive on Astra Poly, Supreme Industries, and Finolex
- Amongst consumer appliances, like Whirlpool
- In agrochem sector, positive on UPL
- Maintain buy call on both Graphite India and HEG
Nomura on Wipro
- Maintain neutral call, target at Rs 270 per share
- Company may announce a buyback of $1.7 bn, equivalent to 22 percent of its net worth
- Likely to buy back 37.5 crore shares (6.2 percent of the outstanding equity)
- Acceptance ratio for retail shareholders likely to be 100 percent
- Acceptance ratio for institutions seen at 5.6 percent
- Stock price movements from the last buyback suggest near-term support
- Limited possibility of a material revival in revenue growth
Citi on Media companies
- TV value chain should report more moderate growth in Q4FY19 and Q1FY20
- Many unknowns as India changes the way it consumes TV
- Zee and Sun both expect to maintain subscription revenue base
- Any adverse impact on reach may be lower for a player like Sun
- Make small cuts to estimates for TV stocks (1-4 percent) factoring recent trends
- Estimates for print major DB Corp move up 5 percent as newsprint concerns dissipate
- Rate Zee at buy/high risk, but cautious on Dish at sell/high risk
- Maintain buy call on sun TV and DB Corp
- Target for Zee raised to Rs 515 from Rs 480, Sun TV to Rs 750 from Rs 725 per share
- Target for Dish TV raised to Rs 36 from Rs 33, DB Corp to Rs 235 from Rs 210 per share
Morgan Stanley on Financials
- Q4 should be a strong quarter for most corporate and retail banks
- Prefer large liquid banks like ICICI, HDFC Bank, SBI, Axis and Kotak Bank
- For NBFCs, expect slower revenue growth; prefer Shriram Transport Finance, M&M Finance
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