BROKERAGE RADAR

IDFC Securities on YES Bank
Downgrade to Underperformer from Neutral; Cut TP to Rs 230 from Rs 350; Potential Downside 28%
Cut in Rana’s tenor is a very big negative for YES Bank
Rana’s absence will slow down loan and fee growth
Could also impact bank’s ability to raise high net worth deposits
This risk has not been priced in; Expect significant correction

Citi on YES Bank
Downgrade to Sell from Buy; Cut TP to Rs 270 from Rs 440; Potential Downside 15%
Believe there is premium attached to the stock due to Rana Kapoor
Likely that bank will have to defer its capital raise plans
Delay in capital raise to impact growth
Time period of over four months could prove short to find a suitable external candidate

Macquarie on YES Bank
Maintain Outperform with TP of Rs 425; Potential Upside 33%
Rejection is a major negative development
Expect a sharp gap-down opening on Friday
Absence of any communication from YES or RBI will be an overhang on stock

Jefferies on Graphite India
Maintain Buy with TP of Rs 1415; Potential Upside 48%
Closure of Bengaluru facility to not impact volumes
Power cost to increase if Co. would start graphitisation at Nasik facility
Impact on EBITDA would be less than 0.5%

CIMB on NMDC
Maintain Add; Raise TP to Rs 161; Potential Upside 36%
Expect higher iron ore prices; Global ore prices to remain stable
NMDC to benefit from likely mining disruption in Odisha
Steel plant when commissioned can add Rs35/share to TP

UBS on Havells India
Maintain Sell; Hike TP to Rs 540 from Rs 500; Potential Downside 16%
Strong brand franchise visible but priced in
Scope of further premiumisation low
Lloyd performance bears watching

HSBC on Grasim
Maintain Hold; Cut TP to Rs 1,140 from Rs 1,190; Potential Upside 7%
VSF and caustic business continue to shine, boosting standalone earnings
Believe continued weakness in other business will have an offsetting effect
Sharp decline in ABC and Idea market caps has been a major drag on share price

CLSA on Infosys
Maintain Buy with TP of Rs 780; Potential Upside 8%
Infosys sees optimism in BFSI and outsourcing momentum in Europe
Deal wins better, digital focus stays, pricing pressure normalised
Proactive capital allocation, senior exits not a worry