BROKERAGE RADAR

Edelweiss on Reliance Industries
Maintain Buy; Raised TP to Rs 1,457 from Rs 1,201
Another robust petchem show; Gasifier stabilization underway
Jio – Surprisingly steady ARPUs; Retail - revenue & margins surge
With commissioning of mega core projects, expect FCF to turnaround
At current price, stock trades at an undemanding

MOSL on Reliance Industries
Maintain Buy; Raise TP to Rs 1,301 from Rs 1,211
Petchem drives standalone profitability; Jio surprises again
Consolidated EBITDA exceeded estimates on the back of Jio and retail operational performance
Positively surprised by Jio’s stellar ARPU despite aggressive pricing

Nomura on Reliance Industries
Maintain Buy with TP of Rs 1,220
Strong Q1 results – Petchem/Jio/Retail gets better; Refining in line
Jio continues to surprise with strong numbers
Expect consolidated EBITDA/Net Profit to grow at a CAGR of 34%/27% over FY18-20
Expect pace of capex to slow in coming quarters

Kotak on ICICI Bank
Maintain Buy with TP of Rs 400
Most metrics show improving trends
Internals of results broadly suggest a gradual recovery
No new negative surprises under new management
High provisions result in a loss; New disclosures not too worrisome

Goldman Sachs on ICICI Bank
Maintain Buy with TP of Rs 375
Bank reported pick-up in core operating profit growth
Accelerated balance sheet clean up by increasing provisioning charge
Fresh NPL slippages were much lower than expectations
Multiple catalysts to drive stock performance

Investec on HCL Technologies
Maintain Buy; Raise TP to Rs 1,100 from Rs 1,048
Q1 disappointing with an organic revenue growth of 0.7%
See negligible impact to FY19 EPS estimates
Buyback and lower ETR offset lower revenue growth impact
Large deal wins drive visibility

Goldman Sachs on HCL Technologies
Maintain Neutral; Raise TP to Rs 1,039 from Rs 1,025
Q1 revenue and EBIT margins below estimates
Expect renewal rates in IMS (36% of revenues) remain under pressure
See limited visibility on pick-up in organic growth in medium to longer term

Edelweiss on Bank of Baroda
Maintain Buy with TP of Rs 180
Impressive Q1 with improvement in asset quality and stable core
Revenue build-up on track; Sustenance key
Expect growth with quality momentum to gain traction
Expect stock to rerate as visibility on earnings delivery improves

JPMorgan on NTPC
Maintain Overweight with TP of Rs 190
Q1 net profit below analyst estimates
Expect healthy EPS growth in FY19 off the reported base of FY18
Lower under-recovery of capacity charge and partial absorption of wage hike provisions to boost EPS

JPMorgan on M&M Financial Services
Maintain Underweight with TP of Rs 435
Q1 higher loan growth offset on credit cost increase
INDAS shift increases F18 net income by +20%
Reduction in credit losses will be key towards improving ROA
Remain underweight as valuations are at a sharp premium

CLSA on JSW Energy
Maintain Sell; Cut TP to Rs 63 from Rs 69
Low water levels in Satluj river hurt Hydro generation in peak season
Dark spreads contract on rising coal and USD
Weak core and risk to ROE from long-gestation capex to cap valuation

CLSA on Westlife Development
Maintain Buy; Raise TP to Rs 550 from Rs 475
Strong SSSG leading to double-digit EBITDA margins
Gross margin expansion led by menu innovations and better mix
Key beneficiary of recovery in urban discretionary consumption