BLOOMBERGQUINT BROKERAGE RADAR

Credit Suisse on Tata Steel
Maintain Outperform with TP of Rs 860
Bhushan Steel acquisition drove net profit miss; Adjusted EBITDA inline
India business inline; Europe business beats estimates
Cut EV/EBITDA multiple as cyclical profitability of industry improves

CLSA on Tata Steel
Maintain Buy with TP of Rs 855
Good operational results in Q1
Steel margins expand QoQ in both India and Europe
Margins to ease sequentially from Q1 high
Iron ore integration can provide a boost to Bhushan Steel margins

Investec on Tata Steel
Maintain Buy; Raise TP to Rs 730 from Rs 720
Operational beat across geographies on back of stronger spreads
Balance sheet remains a concern
An expensive Bhushan power win and volatility in currencies are near term risks
Mgmt. refrained from commenting on Bhushan power

Credit Suisse on Cadila Healthcare
Maintain Neutral; Cut TP to Rs 370 from Rs 400
EBITDA missed estimates as decline in US was led by Tamiflu
Cut FY19/20 EPS by 6-7% to factor weak Q1 results
Stay Neutral due to high concentration

CLSA on Cadila Healthcare
Maintain Buy; Cut TP to Rs 440 from Rs 460
Sales & EBITDA in-line; Net profit beat driven by other income
US expected to pick-up from H2FY19; India to remain stable
Strong US along with improving India outlook are key potential earnings drivers

Credit Suisse on Cummins India
Maintain Outperform with TP of Rs 850
Positives: exports grew, margins expanded & domestic does not reflect a worrying decline
Maintained guidance despite divergent performance in exports and domestic
Believe next quarter could possibly carry an upgrade
Sharp correction and underperformance in last two years driving reasonable valuations

Macquarie on Cummins
Maintain Outperform; Raise TP to Rs 975 from Rs 965
Expect 100 bps margin improvement for FY19
Mix improvement, better pricing and favourable currency movements to expand margins
Tax rate hike limits earning upgrades, but confidence in earnings should still rise
Mgmt. commentary most positive; Cummins is the cheapest Indian industrial stock

CLSA on Lemon Tree
Q1FY19 – strong start to FY19
Network expansion on track; Incremental focus shifting to asset-light model
Changing industry dynamics to support premium valuations
Will review estimates post the earnings call on August 16