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Top brokerage calls for October 11: Analysts cut target price for TCS, IndusInd Bank post earnings

Updated : 2019-10-11 08:16:32

IndusInd Bank and TCS kicked off the September quarter (Q2) earnings season, with TCS missing estimates and IndusInd Bank showing a rise in NPAs. TCS reported a 1.8 percent jump in net profit at Rs 8,042 crore. While IndusInd Bank reported a rise of 52.2 percent in consolidated net profit at Rs 1,400.96 crore. Most brokerages cut target price for both the stocks post their Q2 earnings.

<strong>Citi on TCS:</strong> The brokerage maintained a' sell' call on the stock with a target at Rs 1,870 per share. The firm reported a sluggish Q2 with revenue and margin coming in below estimates, the brokerage said, adding that management comments suggested limited visibility in the near term.
Citi on TCS: The brokerage maintained a' sell' call on the stock with a target at Rs 1,870 per share. The firm reported a sluggish Q2 with revenue and margin coming in below estimates, the brokerage said, adding that management comments suggested limited visibility in the near term.
<strong>Credit Suisse on TCS:</strong> The brokerage maintained a 'neutral' rating on the stock but cut its target price to Rs 1,930 per share from Rs 2,070 earlier. According to the brokerage, the company failed to recoup margin sequentially in Q2 after a wage hike in Q1. It added that the company is a high-quality franchise but not immune to an uncertain environment.
Credit Suisse on TCS: The brokerage maintained a 'neutral' rating on the stock but cut its target price to Rs 1,930 per share from Rs 2,070 earlier. According to the brokerage, the company failed to recoup margin sequentially in Q2 after a wage hike in Q1. It added that the company is a high-quality franchise but not immune to an uncertain environment.
<strong>Jefferies on TCS:</strong> The brokerage gave a 'buy' rating on the stock but slashed its target price to Rs 2,300 from Rs 2,500 earlier. The brokerage said that weak Q2 confirmed single-Digit growth likely in FY20, but added that the company would outperform tier-I peers on growth and margin in the medium term.
Jefferies on TCS: The brokerage gave a 'buy' rating on the stock but slashed its target price to Rs 2,300 from Rs 2,500 earlier. The brokerage said that weak Q2 confirmed single-Digit growth likely in FY20, but added that the company would outperform tier-I peers on growth and margin in the medium term.
<strong>Morgan Stanley on TCS:</strong> The brokerage was 'equal-weight' on the stock with a target at Rs 1,980 per share. Q2 revenue growth, margin and PAT were weaker than estimates, said the brokerage, adding that double-digit growth for FY20 is clearly unachievable.
Morgan Stanley on TCS: The brokerage was 'equal-weight' on the stock with a target at Rs 1,980 per share. Q2 revenue growth, margin and PAT were weaker than estimates, said the brokerage, adding that double-digit growth for FY20 is clearly unachievable.
<strong>HSBC on IndusInd Bank</strong>: The brokerage maintained a 'buy' on the stock but cut its target to Rs 1,920 per share from Rs 2,020 earlier. Benefits of low tax rate offset by lower growth and conservative provisioning, the brokerage said, adding that asset quality remained stable amid concerns on exposure to weak groups.
HSBC on IndusInd Bank: The brokerage maintained a 'buy' on the stock but cut its target to Rs 1,920 per share from Rs 2,020 earlier. Benefits of low tax rate offset by lower growth and conservative provisioning, the brokerage said, adding that asset quality remained stable amid concerns on exposure to weak groups.
<strong>CLSA on IndusInd Bank:</strong> The brokerage maintained 'buy' on the stock but cut its target price to Rs 1,950 per share from Rs 2,160 earlier. Profit missed estimates due to higher credit costs, partly to raise NPL coverage, the brokerage said adding that key positive was a reduction in exposure to stressed companies and healthy auto loan growth.
CLSA on IndusInd Bank: The brokerage maintained 'buy' on the stock but cut its target price to Rs 1,950 per share from Rs 2,160 earlier. Profit missed estimates due to higher credit costs, partly to raise NPL coverage, the brokerage said adding that key positive was a reduction in exposure to stressed companies and healthy auto loan growth.
<strong>Jefferies on IndusInd Bank:</strong> The brokerage had a 'hold' rating on the stock but cut its target price to Rs 1,405 from Rs 1,480 earlier. According to the brokerage, risk-reward is better but not enough to merit an upgrade.
Jefferies on IndusInd Bank: The brokerage had a 'hold' rating on the stock but cut its target price to Rs 1,405 from Rs 1,480 earlier. According to the brokerage, risk-reward is better but not enough to merit an upgrade.
<strong>Morgan Stanley on IndusInd Bank:</strong> The brokerage maintained the 'overweight' rating on the stock but reduced its target price to Rs 1,700 per share from Rs 2,000 earlier. The brokerage added that the company remained their preferred pick amongst mid-sized banks.
Morgan Stanley on IndusInd Bank: The brokerage maintained the 'overweight' rating on the stock but reduced its target price to Rs 1,700 per share from Rs 2,000 earlier. The brokerage added that the company remained their preferred pick amongst mid-sized banks.
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