Brokerage views: Hindustan Unilever, Asian Paints, PVR, Havells, Vedanta, Coforge in focus today
Asian Paints, Hindustan Unilever, PVR, Havells, Coforge, Mphasis and L&T Tech Services are some of the corporates that have reported their financial results for the October-December period. CLSA has a reduce call on Asian Paints with a more than five per cent cut in its target price. Goldman Sachs maintained neutral on Hindustan Unilever and raised its target by Rs 50 to Rs 2,700.
Asian Paints, Hindustan Unilever, PVR, Havells, Coforge, Mphasis and L&T Tech Services are some of the corporates that have reported their financial results for the October-December period. CLSA has a 'reduce' call on Asian Paints with a more than five per cent cut in its target price. Goldman Sachs maintained 'neutral' on Hindustan Unilever and raised its target by Rs 50 to Rs 2,700.
Here's what top brokerages make of some of these companies as investors read their earnings reports and await more of quarterly numbers from India Inc for domestic cues:
Brokerage calls on January 20
Asian Paints
CLSA maintained a 'reduce' call on Asian Paints and reduced its target price for the paint maker's stock to Rs 3,100 from Rs 3,270.
Goldman Sachs maintained 'neutral' on Asian Paints and reduced target to Rs 2,800 from Rs 3,200.
Morgan Stanley maintained 'underweight' on Asian Paints and reduced its target to Rs 2,516 from Rs 2,674.
JPMorgan retained a 'neutral' rating on Asian Paints and reduced its target to Rs 2,800 from Rs 3,365.
Jefferies maintained 'underperform' on the paint maker with a target of Rs 2,570.
Macquarie continued with an 'outperform' on Asian Paints with a target of Rs 3,600.
Hindustan Unilever
CLSA maintained an 'outperform' rating on Hindustan Unilever and raised its target to Rs 2,950 from Rs 2,900. The brokerage said elevated key raw material prices impacted the company's margin despite some improvement.
JPMorgan maintained 'overweight' on Hindustan Unilever with a target price of Rs 2,800. According to the brokerage, the company's quarterly performance was good but its improving rural narrative was shadowed by royalty increase.
JPMorgan lowered its earnings per share estimates for HUL for the years ending March 2024 and March 2024 by 1-2 per cent though it raised the estimate for the year ending March 2023 by two per cent to account for the revenue and net profit beat in the October-December period.
Goldman Sachs maintained a 'neutral' call on HUL and raised its target for the stock to Rs 2,700 from Rs 2,650.
Jefferies maintained a 'buy' on HUL and reduced its target to Rs 3,100 from Rs 3,150.
HSBC retained a 'buy' on Hindustan Unilever and raised its target to Rs 3,050 from Rs 3,000.
Citi maintained a 'buy' on HUL with a target of Rs 3,050.
Havells
- CLSA maintained 'reduce' on Havells India and raised its target to Rs 1,310 from Rs 1,275
- Goldman Sachs retained 'neutral on Havells and raised its target to Rs 1,300 from Rs 1,180
L&T Tech Services
- CLSA maintained 'sell' on L&T Technology Services and reduced its target to Rs 3,200 from Rs 3,400
- Morgan Stanley maintained 'underweight' on L&T Tech Services and raised its target to Rs 3,150 from Rs 3,000.
- JP Morgan retained 'underweight' on L&T Tech Services with a target of Rs 3,000
- Citi continued with a 'sell' on L&T Tech with a target of Rs 2,965
AU Small Finance Bank
- Morgan Stanley maintained 'overweight' on AU Small Finance Bank and reduced its target to Rs 835 from Rs 875
- Citi maintained 'buy' on AU Small Finance Bank and reduced its target to Rs 795 from Rs 805
- Credit Suisse retained 'underperform' on AU Small Finance Bank with a target of Rs 530
PVR
UBS retained a 'buy' on PVR with a target of Rs 2,300. The company's latest earnings are modest and are likely to improve steadily, according to the brokerage.
CLSA maintained a 'buy' call on PVR with a target of Rs 2,430. The company's quarterly revenue and EBITDA were better than the brokerage's estimates.
The brokerage highlighted the resurgence of box office collections of top movies and a strong content line-up for 2023.
Vedanta
CLSA maintained an 'underperform' call on Vedanta with at target price of Rs 295. Hindustan Zinc's deal to acquire Zinc International assets from Vedanta could help ease cash flow stress at Vedanta parent Vedanta Resources, according the brokerage.
Hindustan Zinc's dividend of Rs 13 per share implies a Rs 10 a share payout by Vedanta, according to CLSA.
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