Indian shares are likely to start on a positive note on Monday with the SGX Nifty indicating a green start for benchmark indices, Sensex and Nifty. Among top brokerage calls, Morgan Stanley has raised target price on Indiabulls Housing Finance, while reducing TP on Punjab National Bank. Here are the top brokerage calls on Monday:
Morgan Stanley believes Q1 formed a bottom of the cycle for profitability for the steel sector, expects a sharp rebound in profit for Q2. The global brokerage is underweight on SAIL with a target price of Rs 43 per share and overweight on JSPL with a target price of Rs 280 apiece. MS is overweight on Tata Steel and equalweight on JSW Steel.
CLSA says current crisis offers an opportunity for some FMCG companies to emerge stronger. The global brokerage has increased target prices for Jubilant Food, Kansai, Inox and PVR. It prefers Dabur and HUL in staples.
CLSA has set a target price of Rs 60 per share with sell rating on the PSU stock. Oil India EBITDA 10 percent higher than CLSA’s estimates, brokerage raises FY22 EPS by 75 percent but a weak Q1 leads to FY21 EPS by 15 percent.
CLSA says ICICI Lombard's dominant position and new bancassurance relationship provide headeroom for growth. The deal with Bharti AXA be earnings dilutive in the near term.
Kotak Institutional Equities says that Union Bank reports a stable operational performance in a less relevant quarter. The domestic borkerage has a reduce rating with a target price of Rs 25 per share.
Morgan Stanley says the key negative for PNB in Q1 was weaker-than-expected FY20 book value of equity per share. The global brokerage has an underweight stance on the PSB with a target price of Rs 25 per share.
Morgan Stanley maintains an underweight stance on Indiabulls Housing Finance with a target price of Rs 120 per share from a previous TP of Rs 75. The global brokerage said the housing lender's on-balance sheet borrowings rose 1 percent QoQ after shrinking 37 percent since September 2018.
Lupin has seen weakness across all businesses barring API; execution across key items remains key, says Investec. The brokerage has maintained a sell rating with a target price of Rs 815 from a previous TP of Rs 665 per share.
Cipla’s near-term EPS to be robust with support from COVID portfolio/ lower costs, Investec says, while maintaining a buy rating on the stock with a revised target price of Rs 885 per share.