CLSA on Indian I.T. companies – CLSA sees a strong deal pipeline across segments in the global technology ecosystem. They see stable I.T. spends among large U.S. BFS firms. Also, the 5G rollout is on track at global telecom service providers. The cross-currency move is expected to be a minor tailwind in Q3 FY21. Strong earnings defence by most I.T. stocks appears priced-in especially for midcap names. Incremental consensus EPS upgrades to be revenue-led. Deal wins / order bookings in Q3 FY21 to be a key trigger. Elevated valuations could be a deterrent and may induce a time correction. HCL Technologies, Infosys, Tech Mahindra are preferred bottom-up stock picks for CLSA.

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Jefferies on Adani Ports – They maintain buy rating with price target raised to Rs 525 from Rs 475.  Acquired ports have given significantly better returns; KPCL is a value accretive acquisition. Revise FY21-23E estimates by 3-7% to factor in the November 2020 volume data. Promoter pledge reduction and efficient cash flow utilisation key for further re-rating. Key Risks would be sustainable sharp slowdown in port volumes, divergent trends on promoter pledges Vs management commitment.

Jefferies on ICICI Bank – They maintain buy rating with price target raised to Rs 600 from Rs 570. Banks are approaching clients with product suites and not just products. Ecosystem banking is a key focus area. Business is getting better and provisions are adequate. Management says the second half of FY21 should see higher downgrades and Covid restructuring for corporate/SME loans would be almost 1% of total loans. They see earnings recovery from FY22 with improved growth and lower credit costs.

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Motilal Oswal On ICICI Bank – They maintain buy rating maintained with price target raised to Rs 630 apiece from Rs 525 apiece. ICICI Bank is gaining market share with strong risk control. Technology remains the key growth driver. Firmly placed to deliver healthy sustainable growth. ICICI Bank remains one of the top ideas in the BFSI space See RoA/RoE of 1.7% and 15.2% respectively for FY23E.