BROKERAGE RADAR

Citi on Tata Power
Maintain Neutral; Cut TP to Rs 77 from Rs 100
Higher coal costs, CERC order and price cap on domestic sale of coal to impact
Cut EPS estimates to factor in higher losses in Mundra, lower Maithon and coal profits
Top pick in electric utilities is NTPC; Buy rating also on Power Grid and CESC

Goldman Sachs on Maruti Suzuki
Maintain Buy with TP of Rs 11,041
Ciaz will underpin the brand’s strong customer loyalty
Expect new model to kick-start the roll out of hybrid powertrain in India
Expect new Ciaz to further widen leadership and add to existing robust order backlog

Deutsche Bank on Indian Cement Sector
Cement prices remain weak; All-India price dropped by 1.8%
since end-June to Rs 325/bag
Prices correct as expected in lean season; Cost inflation to impact margins
Remain constructive on longer term outlook; Central and North best placed

Morgan Stanley on Ultratech Cement
Maintain Overweight with TP of Rs 4954
Century deal approved by CCI
Ultratech’s domestic capacity should increase to 104MT
Market share of 23-24%, making it 2.5x larger than the second player by capacity

Deutsche Bank on Federal Bank
Maintain Buy with TP of Rs 115
Limited business impact of Kerala Floods
Do not see any credit risk for corporate sector and retail sector
Credit costs to rise marginally in FY19

Nirmal Bang on Dixon Technologies
Initiate Buy with TP of Rs 3,285
Preferred play in highly scalable electronic manufacturing services industry
Backward integration to improve value addition
Market leadership and capacity expansion to drive growth
Expect Revenue/Net Profit CAGR of 19%/31% over FY18-FY21