Top brokerage calls for April 3: Nomura downgrades Eicher Motors, HSBC raises ICICI Lombard's target price

Updated : April 03, 2019 09:08 AM IST

CLSA on Bharti Airtel- India mobile operations would return to growth in Q4

Morgan Stanley on Banks- Don’t see the SC judgment as a significant negative in near term

HSBC on ICICI Lombard- Maintain hold, target raised to Rs 820 from Rs 800 per share

Indian shares are likely to open little changed on Wednesday ahead of the Reserve Bank of India’s monetary policy outcome on Thursday.

According to a CNBC-TV18 poll, RBI is expected to cut the key repo rate by 25 basis points. India's manufacturing growth fell to a six-month low in March due to weak demand.

At 07:20 AM, the SGX Nifty, an early indicator of the Nifty 50's trend in India, was up 0.08 percent at 11,797.00, indicating a mixed start for the Sensex and Nifty.

On Tuesday, the S&P BSE Sensex Sensex rose 184.78 points to end at a record high of 39,056.65 while the Nifty 50 gained 44 points to close at 11,713.20.

Among brokerages, CLSA retained a 'buy' call on Bharti Airtel, while Nomura downgraded Eicher Motors to reduce and cut its target to Rs 18,335. HSBC has a 'hold' rating on ICICI Lombard but target price is raised to Rs 820 per share.

Here are the top brokerage calls for Wednesday:

CLSA on Bharti Airtel

- India mobile operations would return to growth in Q4

- Forecast a 3 percent quarter-on-quarter growth in mobile EBITDA

- India revenue would likely to be flat this quarter

- In Africa, operations may be strong with a 2 percent QoQ revenue growth

- Retain buy call with a target of Rs 410 per share

Nomura on Eicher Motors

- Downgrade to reduce from neutral, target cut to Rs 18,335 from Rs 20,653 per share

- Competition could further impact growth

- Demand outlook remains challenging

- Growth impacted by a 14 percent price hike since August 2018

- Royal Enfield has raised prices more aggressively than the increase in cost

- Expect further 6-7 percent price rise from the fourth quarter due to a switch-over to BS-6

- The company may need to re-look at the pricing strategy or incentives

- Lower volume estimates by 10 percent for FY20 to 8.23 lakh Units, flattish year-on-year

HSBC on ICICI Lombard

- Maintain hold, target raised to Rs 820 from Rs 800 per share

- Third-party motor prices unchanged, insurers expected 5-10 percent rise

- Own-damage prices could hold but are unlikely to rise

- Risks and rewards on the stock are evenly balanced

Morgan Stanley on Banks

- Don’t see the SC judgment as a significant negative in the near term

- Banks have recognised the bulk of NPLs and improved coverage

- Potential delay in recognition/provisioning will be limited

- Shift to International Financial Reporting Standards will tighten NPL guidelines in the medium term

Also, catch all the action and updates in our Market Live blog.

Top brokerage calls for April 3: Nomura downgrades Eicher Motors, HSBC raises ICICI Lombard's target price

You May Also Like

KVIC's e-market portal achieves Rs 1.12 crore turnover in 8 months

Important update for passengers boarding domestic flights from Mumbai airport

Countdown begins for ISRO's first mission in 2021, Brazil's Amazonia-1 on board

Trending on CNBC-TV18

recommended for you