*BROKERAGE RADAR*


HSBC on Aviation Sector

InterGlobe: Downgrade to Hold from Buy; Cut TP to Rs 925 from Rs 1,475

Jet Airways: Downgrade to Reduce from Hold; Cut TP to Rs 150 from Rs 375

SpiceJet: Downgrade to Hold from Buy; Cut TP to Rs 102 from Rs 165

Indigo’s Q1 results sent a distress signal for the sector

While fuel and forex were broadly known, yield softness was a surprise

Stocks are down and are trading near their historical trough valuations

Headwinds will continue to keep the volatility alive

Any strength in the yield should be the next catalyst



Nomura on Reliance Nippon

Initiate Buy with TP of Rs 315

Growth opportunity too large to worry over cyclicality

Focus rightly shifting towards profitable asset mix

Core profitability to improve despite yield pressure

Distribution strength driving market share gains in retail

Valuations factoring in cyclicality risks and regulatory pressure now



Deutsche Bank on Berger Paints

Initiate Buy with TP of Rs 375

Product differentiation and distribution expansion to drive double-digit volume growth

New niche segments a strong medium-term growth driver

Expect moderate margin expansion to continue

Expect Revenue/Net Profit CAGR of 17%/22% over FY18-21



Deutsche Bank on Kansai Nerolac

Initiate Buy with TP of Rs 575

Fastest-growing paint company and key beneficiary of a likely capex cycle revival

Margin expansion to continue led by premiumisation and operating leverage

Leveraging parents global technology for new launches

Capacity to increase by 50% over next 3 years

Expect Revenue/Net Profit CAGR of 17% over FY18-21



Morgan Stanley on GAIL (India)

Maintain Overweight; Cut TP to Rs 473 from Rs 511

Fundamentals are getting strong

Positives: push to lower pollution, clarity on hike in pipeline tariff

Weaker US gas prices coupled with higher oil prices to lead to upside risks

Cut TP due to lower multiples across its businesses due to higher bond yields in India



JPMorgan on HCL Tech

Maintain Overweight with TP of Rs 1,050

Risk-reward balance delicately poised

Judicious course-correction can shift balance in a more favorable direction

Do not see HCL making disruptive moves to improve its positioning in digital

Maintaining margins can be difficult in the face of continued growth difficulties

CLSA on Titan

Maintain Outperform with TP of Rs 1,050

Q1 results ahead of estimates; Massive margin gains in watches

Jewellery: Higher Ebit, but weaker revenues

Management sounded positive and maintained its guidance for >25% jewellery growth

Sustained pick-up in growth is critical for stock-price performance



Morgan Stanley on Titan

Maintain Overweight with TP of Rs 1,080

Q1FY19: In-Line Earnings

Key positive for the quarter is the watch business margin

Key disappointment during the quarter was the jewellery business margin



UBS on Nestle

Maintain Neutral with TP of Rs 10,750

Strong quarter; Volumes in line; Profit beat

New launches continue; Management warns about raw material inflation

Margins to come under pressure in the near term

Strong performance priced in; Limited upside



CLSA on Nestle

Maintain Outperform; Raise TP to Rs 11,700 from Rs 10,200

Q2CY18 results ahead of estimates

Good growth with strong margin expansion

Input costs are inching up but strong pricing power allays margin concerns

Believe Nestle is on a good growth trajectory



JPMorgan on Godrej Properties

Maintain Neutral with TP of Rs 850

Accounting change impacts net earnings

Like-to-like financials much better

Pre-sales come off partly on higher base

Real estate companies to now focus on deliveries rather than hitting revenue recognition thresholds

Morgan Stanley on Godrej Properties

Maintain Equal-weight; Raise TP to Rs 707 from Rs 682

Opening net worth lower by Rs 740 crore due to IND AS

Management optimistic on pickup and expects consolidation to continue

Expect Godrej to continue to deliver on new project acquisitions

Expect new launch momentum in the ensuing quarter



Morgan Stanley on Tata Global Beverages

Maintain Underwei