On January 29, the market extending its losing streak into the sixth consecutive session, with benchmark indices slipping a percent each ahead of the Union Budget to be presented on February 1. We have collated a list of stocks whose target price was raised by foreign brokerage houses after they released their December quarter numbers.
Colgate Palmolive | Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 1,750 per share. There was a double-digit revenue growth & margin expansion despite ad spends. The increased FY21-23 earnings by 3 percent. The Q3 has been the first quarter of double-digit revenue growth in five years, reported CNBC-TV18.
TVS Motor | Brokerage: CLSA | Rating: Outperform | Target: Raised to Rs 600 from Rs 525 per share. The price hikes offset the commodity cost push, as Q3 results were better than expected. EBITDA was 9 percent higher than the brokerage's forecast. The management indicated improving volume trends for both domestic and export markets. CLSA increased its FY21-23 EPS estimates by 15-19 percent. The stock continues to trade at a premium to its 2W peers, CNBC-TV18 reported.
Axis Bank | Brokerage: CLSA | Rating: Buy | Target: Raises to Rs 1,000 from Rs 850 per share. The result was a big beat on asset quality with a slippage of just Rs 6,700 crore. The bank is the best placed to handle any potential stress and should see credit cost normalisation in FY22 itself. The improvement in underwriting in the last four-five years should lead to a big rerating. CLSA lift its FY22-23 earnings by 5-12 percent. The stock remains one of the top picks. It’s the best way to play the benign credit cycle for corporate and retail loans from FY22, reported CNBC-TV18.
Nippon AMC | Brokerage: CLSA | Rating: downgrade to outperform from buy | Target: Raised to Rs 340 from Rs 325 per share. The net profit was supported by 2x YoY growth in other income. The mutual fund AUM QoQ growth was led by debt & equity AUMs. The market share trends across debt, equity and liquid are weak. The regaining share is critical for rerating, reported CNBC-TV18.
Bank Of Baroda | Brokerage: CLSA | Rating: Outperform | Target: Raises to Rs 80 from Rs 71 per share. The company delivered a surprise on asset quality, while sounding caution on retail/MSME. Most of the incremental stress was from corporate loans, while loan growth was better than expected & NIM stable. CLSA raised FY21 estimates to account for a strong surprise on asset quality and expects RoE to normalise to only 8 percent by FY23, reported CNBC-TV18.
Kotak Mahindra Bank | Brokerage: Goldman Sachs | Rating: Neutral | Target: Raised to Rs 1,986 per share. The PPoP growth driven by better-than-expected margin with NII beating estimates, while NII beat was partially offset by slightly higher-than-expected provisions, reported CNBC-TV18.
L&T | Brokerage: Goldman Sachs | Rating: Buy | Target: Raised to Rs 1,650 from Rs 1,450 per share. The Q3 results were a strong performance in a challenging macro environment, while it indicates sequential improvement in performance hereon, reported CNBC-TV18.
NCC | Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 80 from Rs 53 per share. CLSA raised EPS by 19 percent-21 percent on order surprise. The robust order inflows and a good execution track-record are the positive catalysts. It reduced dependence on its home state, inexpensive valuations core arguments to buy. The company has also de-levered its balance sheet & is at decade-low leverage. CLSA raised FY22-23 EPS estimates by 21 percent-19 percent, reported CNBC-TV18.
UltraTech Cement | Brokerage: CLSA | Rating: Outperform | Target: Raised to Rs 6,230 from Rs 6,000 per share. The Q3 was meaningfully ahead of estimates but cost pressure loomed. It was a strong Q3 on higher volume & better profitability. However, a rise in fuel costs is likely to weaken profitability. The firm is CLSA's top pick among large-cap cement companies, while there will be a limited upside due to near-term margin pressure & fair valuation, reported CNBC-TV18.