Global View: What should investors do with Vedanta, ICICI Prudential and HPCL?

The Indian markets fell for the second consecutive day in a row on Wednesday weighed down by muted global cues.

Sectorally, buying was seen in power, auto, utilities, and healthcare, while selling was seen in realty, energy, oil & gas, and telecom stocks.

See Zee Business Live TV Streaming Below:

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Vedanta:

JPMorgan maintained its overweight rating on Vedanta with a target price of Rs 400. If the company choose to list Aluminum, Steel & Oil separately would effectively mean 4 entities across these 3 and 1 residual entities, which could own copper smelting, power & Zinc International.

In our view, if the company were to choose the above option, the most likely way could be via a de-merger with mirror shareholding of the existing VEDL, as it would be easier to achieve compared to an IPO process, said the note.

The press release does not mention anything on whether Zinc International would be sold to VEDL’s subsidiary HZ.

Also Read: Vedanta mulls group restructuring; separate listing of businesses
https://www.zeebiz.com/companies/news-vedanta-mulls-group-restructuring-...

ICICI Prudential Life Insurance
 
CLSA maintained the outperform rating on ICICI Prudential Life Insurance for a target price of Rs 750.

The global investment bank remains confident of doubling FY19 value of the new business (VNB) by FY23.
 
Despite near-term challenges in individual protection business with another round of reinsurer price hikes, other key levers – credit life, annuity & non-par savings – should support the VNB growth

HPCL:

Jefferies maintained its buy rating on HPCL and raised its target price to Rs 410 from Rs 370 earlier.

Marketing margin on auto fuel improved sharply in November. The excise duty cuts have created room for price revision, said the note. Early in the refining cycle that should firm up over CY22E.

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