BROKERAGE RADAR

Citi on ICICI Securities
Initiate Buy with TP of Rs 425; Potential Upside 30%
Expect it to be a key beneficiary of a shift to financial avenues of savings
Leading retail broking franchise; Growing in distribution
Client franchise can benefit from ICICI group
Expect Revenue/Net Profit to grow at a CAGR of 16%/21% over FY18-21

Edelweiss on Sheela Foam
Initiate Buy with TP of Rs 2,010; Potential Upside 20%
Superior brand with strong distribution and pricing power
Positives: Broad-based growth, easing raw material prices and improving mix
Expect Revenue/EBITDA/Net Profit to grow at a CAGR of 14%/30%/35% over FY18–20
Sheela Foam trades at high valuations, but EPS reflects the opportunity size

UBS on Infosys
Maintain Buy; Raise TP to Rs 865 from Rs 737; Potential Upside 18%
Currency gains create opportunity to accelerate investments
Attrition remains a challenge; Senior management retention is key
Upgrade estimates and TP to reflect recent currency moves

BofAML on Glenmark Pharma
Maintain Neutral; Raise TP to Rs 715 from Rs 600; Potential Upside 4%
Respiratory drivers in EU intact for double digit growth
US pipeline in generics is lacking visibility
Big launches in FY20, but see near-term risk in mupirocin competition
Debt reduction expectations on back of recent deals led to stock re-rating

Citi on Cummins India
Maintain Buy; Raise TP to Rs 844 from Rs 779; Potential Upside 13%
Exports guidance could get revised up post Q2
Positive on a potential business rebound
Increase TP to factor in higher sales and higher EBITDA margins

Macquarie on Indian IT Services
Currency boost in improving growth environment
Industry trends continue to point at growth acceleration
Upgrade Wipro and Hexaware to Outperform on valuations
In large cap preference is HCL Tech > TCS > Infosys > Wipro and Tech Mahindra
In mid-caps, preferred pick is L&T Infotech

Macquarie on Ujjivan Financial
Maintain Outperform; Cut TP to Rs 460 from Rs 490; Potential Upside 40%
Rising bond yield concerns overdone; Changing liability mix being overlooked
Ujjivan on track to deliver 35% loan CAGR and 16% RoE by FY21
Correction in the past 3 months provides attractive entry price

Citi on BHEL
Maintain Neutral; Raise TP to Rs 84 from Rs 78; Potential Upside 8%
NTPC Talcher 1320MW likely to fructify soon
Of the total order Rs 19000 crore orders are slow moving
Increase EPS estimates by 7-8% based on trends in the latest annual report

Deutsche Bank on Tata Global
Maintain Hold with TP of Rs 285; Potential Upside 28%
Integration of international business to drive cost optimisation
Increased focus on Indian business, entry into branded coffee and profitable Starbucks augurs well
Expect 14% earnings CAGR over FY18-21

CLSA on HDFC Life
Maintain Buy with TP of Rs 600; Potential Upside 33%
Mgmt sees healthy growth in insurance industry as it remains preferred pool of household savings
HDFC Life is banking on expanding distribution and product innovation
Believe HDFC Life is well placed to deliver a 24% CAGR in new premiums