Global brokerage firms on Dr Reddy’s, BPCL, Vedanta, GAIL & SAIL post Q2 results

Global brokerage firms such as Macquarie, Nomura, CLSA, as well as JPMorgan tweaked their target price on companies post September quarter results. 

We have collated a list from ZEE Business TV on recommendations from various global brokerage firms: 

See Zee Business Live TV Streaming Below:

Dr Reddy’s Laboratories: Nomura| Buy| Target Rs 5859 

Nomura maintained its rating on Dr Reddy’s but Macquarie slashed the target price on Dr Reddy’s Laboratories post Q2 results. 

Nomura maintained its buy rating on Dr Reddy’s Laboratories post September quarter results but raised its target price to Rs 5859 from Rs 5619 earlier. 

Dr Reddy’s reported a strong quarter, and the strategy to pursue growth tweaking its asset base is playing out well for the pharma major. The global investment bank raised FY22F/23F/24F EPS by 11%/5%/8%. 

BPCL: Nomura| Buy| Target Rs 550 

Nomura maintained its buy rating on BPCL post September quarter results with a target price of Rs 550. 

The Q2 results were much better than expectations. Earnings volatility will remain high, but reduced disclosures make quarterly earnings analysis difficult. 

The Q2 standalone EBITDA came ahead of estimates. The earnings beat was largely driven by higher refining margins, higher marketing margins & inventory gains.   

Vedanta: Citi| Buy| Target Rs 400 

Citigroup maintained its buy rating post September quarter results with a target price of Rs 400. 

The Q2 EBITDA rose by 5 per cent QoQ on higher aluminum volumes. Dividend support at 6 per cent yield augurs well. 

GAIL India: Macquarie| Outperform| Target Rs 205 

Macquarie maintained its outperform rating on GAIL India post Q2 results with a target price of Rs 205. 

The firm reported strong overall performance. GAIL reported a solid earnings beat in Q2, with better performance across divisions. Net profit in H1 is slightly over 80 per cent of FY21 levels. 

SAIL: JPMorgan| Buy| Target raised to Rs 165 from 150 

JPMorgan maintained its buy rating on SAIL post Q2 results and raised its 12-month target price to Rs 165 from Rs 150 earlier. 

The global investment bank increased FY23-24 estimates by 7%-21% and continued to see upside earnings risk to estimates. 

De-leveraging impressive. Spot coal prices have peaked, and hence post Q3 costs should fall even as volumes and prices should be stable. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)