Global Brokerages views on Cipla, Ambuja Cement, IRB Infrastructure & Axis Bank

Bulls took control of D-Street on Tuesday pushing the S&P BSE Sensex above 61000 while the Nifty50 closed above 18200 levels supported by strong earnings from India Inc.

We have collated a list of recommendations covered on Zee Business TV from top global brokerage firms on stocks like Cipla, Ambuja Cement, IRB Infrastructure & Axis Bank that came out with results on Tuesday: 

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Ambuja Cement: Credit Suisse upgrades stock to Outperform

Ambuja Cements Ltd, part of Swiss building material major Holcim group, has reported an increase of 10.85 percent in its consolidated net profit at Rs 890.67 crore for the third quarter ended September 2021, driven by volume growth.

The company, which follows the January-December financial year, had clocked a net profit of Rs 803.50 crore in the July-September quarter a year ago, Ambuja Cements said in a BSE filing.

Most global brokerage firms such as Credit Suisse, Macquarie, and JP Morgan raised their respective target price.

Credit Suisse upgraded Ambuja Cement to outperform from neutral post September quarter results and raised the target price to Rs 450 from Rs 435 earlier.

Macquarie also maintained outperform rating on Ambuja but raised its target price to Rs 463 from Rs 461 earlier. JP Morgan maintained its neutral rating but raised the target to Rs 360 from Rs 350 earlier.

IRB Infrastructure: CLSA maintains buy

The highway construction company has reported a consolidated profit of Rs 42 crore for the quarter ended September 30, 2021. It had posted a loss of Rs 20 crore in the year-ago quarter.

The revenue from operations grew 30% to Rs 1,465 crore as against Rs 1,123 crore posted last year. Besides, IRB Infrastructure Developers Limited will raise Rs 5,347 crore through preferential allotment. In the process, it will buy 24.9% stakes in Spanish infrastructure major Ferrovial for Rs 3,180 crore and 16.9% stakes in Singapore’s GIC for Rs 2,167 crore.

CSLA maintained its buy rating on IRB Infrastructure post September quarter results with a target price to Rs 351. The strategic deal is likely to unlock growth potential for the company.

Strategic investors see the value, and that is expected to provide growth capital. Traffic recovering smartly, and the best may be yet to come, it said.

Cipla: CLSA maintains buy with a target of Rs 1150

Drug major Cipla reported a 7.5 per cent YoY rise in the consolidated profit at Rs 709 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 659 crore in the year-ago quarter.

Its revenue from operation grew by 10 per cent to Rs 5,520 crore as against Rs 5,038 crore posted last year. EBITDA grew 4.2 per cent to Rs 1,226 crore as against Rs 1,177 crore posted last year.

The pharmaceutical company's margin contracted to 22 per cent in Q2FY22 as against 23.4 per cent posted in Q2FY21.

CLSA maintained its buy rating on Cipla post September quarter results with a target price of Rs 1150. The FY23 US pipeline and Branded market presence are long-term drivers of growth for Cipla.

We are seeing a strong growth in India and export markets excluding the US, said the note. CLSA increase FY22 EPS estimates 3%, cut FY23-24 EPS estimates 2%.

Axis Bank: Jefferies maintains buy with a target of Rs 1020

The private lender Axis Bank reported 86 per cent YoY rise in the profits at Rs 3,133 crore for the quarter ended September 30, 2021. It had posted a profit of Rs 1,683 crore in the year-ago quarter.

The Net Interest Income (NII) rose by 8 per cent to Rs 7,900 crore as against Rs 7,326 crore posted last year. The gross non-performing assets (NPA) of the lender came in at 3.53 per cent in the quarter under consideration, lower than 3.85 per cent reported in the previous quarter ended June 30, 2021.

Jefferies maintained its buy rating on Axis bank post September quarter results with a target price of Rs 1020. The 2Q profit stood at Rs31bn (+86% YoY) ahead of estimates aided by lower credit cost.

Moderation in slippage, and low restructuring were positives from the results. The loan growth slowed to 10% YoY/ 1% QoQ as a pick-up in retail/SME was offset by a fall in corporate loan.

(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.)