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Top brokerage calls for September 13: CLSA maintains 'sell' call on Glenmark; HSBC cuts target price for steel stocks

Updated : 2019-09-13 08:10:11

Indian shares are likely to open little changed on Friday, as investors may take a breather after strong gains earlier this week. Meanwhile, Asian shares rose as hints of progress in the US-China trade dispute and aggressive stimulus from the European Central Bank are likely to lift market sentiment. Among brokerages, CLSA has a 'sell' call on Glenmark Pharma, while Morgan Stanley is 'overweight' on Mphasis. Here are the top brokerage calls for Friday:

<strong>CLSA on Glenmark Pharma:</strong> The brokerage maintained a 'sell' call on the stock with a target of Rs 350 per share. Cashflow generation in FY19 is weak with a negative free cash flow of Rs 280 crore, CLSA said, adding that fundraising will be a key catalyst. <br />The company's leverage is higher than its peers and has debt repayment of Rs 2,700 crore, it noted.
CLSA on Glenmark Pharma: The brokerage maintained a 'sell' call on the stock with a target of Rs 350 per share. Cashflow generation in FY19 is weak with a negative free cash flow of Rs 280 crore, CLSA said, adding that fundraising will be a key catalyst.
The company's leverage is higher than its peers and has debt repayment of Rs 2,700 crore, it noted.
<strong>HSBC on Steel:</strong> Weak demand and pricing environment continue to weigh on steel stocks, the brokerage said, adding that anti-dumping duties should help stem price decline. The brokerage has a 'hold' rating on Tata Steel, JSW Steel, and SAIL, and 'buy' rating on JSPL. However, it reduced the target price for all the four stocks.
HSBC on Steel: Weak demand and pricing environment continue to weigh on steel stocks, the brokerage said, adding that anti-dumping duties should help stem price decline. The brokerage has a 'hold' rating on Tata Steel, JSW Steel, and SAIL, and 'buy' rating on JSPL. However, it reduced the target price for all the four stocks.
<strong>Jefferies on Oil India</strong>: The brokerage has a 'buy' rating on the stock with a target of Rs 300 per share. $10 move in brent impacting EBITDA by only 15 percent, it said, adding that earnings are resilient, leaving the 7.5 percent yield secure.
Jefferies on Oil India: The brokerage has a 'buy' rating on the stock with a target of Rs 300 per share. $10 move in brent impacting EBITDA by only 15 percent, it said, adding that earnings are resilient, leaving the 7.5 percent yield secure.
<strong>Morgan Stanley on Mphasis</strong>: The brokerage is 'overweight' on the stock with a target of 1,100 per share. DXC an important client relationship for the company and accounts for 25 percent of its revenues, the brokerage said.
Morgan Stanley on Mphasis: The brokerage is 'overweight' on the stock with a target of 1,100 per share. DXC an important client relationship for the company and accounts for 25 percent of its revenues, the brokerage said.
<strong>Citi on JSPL:</strong> The brokerage has a 'buy' call on the stock with a target of Rs 188 per share. The brokerage said that the stock is trading substantially below replacement cost and that the promoters have a plan to substantially cut promoter pledge levels.
Citi on JSPL: The brokerage has a 'buy' call on the stock with a target of Rs 188 per share. The brokerage said that the stock is trading substantially below replacement cost and that the promoters have a plan to substantially cut promoter pledge levels.
<strong>IDFC Securities on SRF:</strong> The brokerage initiated coverage on the stock with an 'outperform' call and target of Rs 3,347 per share. Specialty chemicals business is now at a tipping point, it said, adding that R&D and infrastructure investments are set to meet latent demand from global innovators.
IDFC Securities on SRF: The brokerage initiated coverage on the stock with an 'outperform' call and target of Rs 3,347 per share. Specialty chemicals business is now at a tipping point, it said, adding that R&D and infrastructure investments are set to meet latent demand from global innovators.
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