Public sector engineering major Bharat Heavy Electricals Ltd (BHEL) reported a 36 percent year-on-year decline in its net profit at Rs 119 crore in Q2. Lower net revenue from operations and high expenses steered the fall in its quarterly net profit. Despite its poor Q2 showing, brokerages remain bullish on the BHEL stock. Credit Suisse put an 'outperform' call, while CLSA maintained its 'buy' call. Here are some top brokerage calls for Thursday:
Credit Suisse on BHEL: The brokerage maintained 'outperform' on the stock with a target at Rs 88 per share. Coal-based Thermal Power sector would revive to meet growing demand, said the brokerage, adding that Rs 7,400 crore order inflows driven by Rs 5,600 crore power and Rs 1,300 crore industries inflows.
CLSA on BHEL: The brokerage maintained a 'buy' rating on the stock with a target at Rs 67 per share. CLSA sees the government looking to unlock value by cutting stakes. The brokerage added that it also cut the stock's FY20 earnings per share (EPS) estimate by 16 percent on weak H1.
Credit Suisse on Cadila Health: The brokerage put a 'neutral' call on the stock with a target at Rs 251 per share. Cadillla Health had a good performance in the US and India in second quarter as profit concentration remained high, said the brokerage. It also noted that the quarter was impacted by wellness seasonality and a rise in India business expenses.
Macquarie on Cadila Health: The brokerage maintained 'outperform' call on the stock but cut its target to Rs 270 per share from Rs 292 earlier. Q2 performance was a tad weaker than estimates, said the brokerage. It also stated that margin expansion was contingent on recovery in domestic generics business and new US launches.
Morgan Stanley on JSPL: The brokerage is 'overweight' on the stock with a target at Rs 139 per share. The Supreme Court postponed the hearing on the company's petition related to Sarda Mines. As per the brokerage, this will be an important event to watch for the stock.