Trading Calls Today:

Morgan Stanley on Tata Motors (CMP: 432) 

Maintain Overweight, Target 502 

JLR CEO resigns 

Adrian Mardell, who has been a part of JLR for 32 years will take over as interim CFO 

Continue to watch JLR’s FCF Improvements 

FCF enhancements is vital in deleveraging story 

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 Morgan Stanley on ICICI Bank (CMP: 914) 

Maintain Overweight, Target 1250 

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 Morgan Stanley on Kotak Mahindra Bank (CMP: 1966) 

Maintain Equalweight, Target 2215 

Margin Improved sharply over previous 12 months & ought to proceed to enhance 

Loan Growth stays robust with no vital moderation 

Operating prices stay elevated 

Asset Quality benign & greatest it has been in a few years 

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 BoFA on Bank of Baroda (CMP: 163) 

Maintain Buy, Target 190  

1% RoA is now a conservative base case with upside dangers from all earnings drivers; 

 sustainable credit score development potential of 13-15%  

At 0.75x P/B, risk-reward very enticing  

Meaningful room for re-rating as investor notion improves 

 

Morgan Stanley on Bank of Baroda (CMP: 163) 

Maintain Overweight, Target 195 

(Asia Pacific Summit Feedback) 

Mgmt sees upside threat to its 12% YoY mortgage Growth steerage for FY23 

Margin Expansion stays on Track 

Operating prices will see some improve over subsequent 12 months 

Asset high quality outlook stays robust 

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 Goldman Sachs on IndusInd Bank (CMP: 1144) 

Maintain Buy, Target lower to 1377 from 1389 

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 Morgan Stanley on TCS (CMP:3355) 

Maintain Equalweight, Target 3050 

Near time period demand tendencies holding up with pockets of weak point 

Maintaining Stable Pricing outlook &25% Exit Margin by This fall 

Co believes medium time period outlook is nice 

Co says development over subsequent 5 years must be higher than final 5 years 

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 Morgan Stanley on Tata Elxsi (CMP: 6946) 

Maintain Underweight, Target 5800 

Mixed demand outlook throughout vertical- Autos robust, Media weak 

Margin Decline ked by investments & Normalisation of prices whereas pricing is secure 

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 Citi on Hindustan Zinc (CMP: 319) 

Maintain Neutral, Target raised to 285 from 260  

Announced 2nd interim dividend of Rs15.5/sh,  

money outflow of Rs88.7bn ($1.1bn)  

Total dividend for FY23 thus far- Rs36.5/sh, implying a payout of 147% on est. 

 money outflow of $1.9bn Trades at 7x 1-yr fwd EV/EBITDA 

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 Morgan Stanley  on Hindustan Aeronautics (CMP: 2681) 

Maintain  Overweight, Target  3024  

Improving visibility & margin steerage revised upwards  

F23rev development steerage maintained at 7-8%,  

EBITDA margin steerage revised to 26-27% (vs 24-25% earlier)  

H2F23 margin could be decrease than H1F23 on account of anticipated improve in share of manuf rev 

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 BoFA on ABB (CMP: 3036) 

Maintain Neutral, Target 3231  

Robust orders/robust backlog present near-term visibility  

Margins proceed to develop on brief cycle and higher combine  

Outlook robust  

Valuations at 60 est. 2yr fwd PE (at +2SD degree) costs in +ves 

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 Jefferies on Home First Finance Co (CMP: 717) 

Initiate Buy, Target 900 

Among the quickest rising inexpensive HFCs 

Expect EPS CAGR of 24% & ROE improve to fifteen% (12% FY22) over FY22-25e, driving re-rating 

Expect to ship 30% mortgage CAGR over FY22-25e by increasing distribution by 60%  

& leveraging superior productiveness  

This ought to drive 28% NII CAGR over FY22-25e, regardless of some NIM stress 

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 Morgan Stanley on Oberoi Realty (CMP: 894) 

Maintain Equal weight, Target 885 

Interest price affect on residential demand is to date restricted 

Thane launches ae possible in subsequent qtr 

Can probably generate Rs 1500 cr income every year from the mission over subsequent 10 years 

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 CLSA on HDFC Life Insurance Co (CMP: 528) 

Maintain Buy, Target 690 

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 CLSA on ICICI Lombard (CMP: 1131) 

Maintain Buy, Target 1550 

 Morgan Stanley on ICICI Lombard (CMP: 1131) 

Maintain Overweight, Target 1400 

Combined ratio is elevated on Investments in Distribution & Competitve Intensity 

Pricing Should Start Improving in subsequent 3-4 qtrs 

Co will proceed to spend money on retail well being 

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 Macquarie On Sun Pharama (CMP: 1019) 

Maintain Outperform, Target 1140 

For Oct’22, Ilumya unit gross sales in US jumped 10% MoM & 46% YoY,in keeping with Symphony Health information  

Cequa market share continues to inch up in dry eye market, 4.3% vs. 3.8% in Mar’22  

Winlevi TRx remained flat MoM 

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 Macquarie on Uno Minda (CMP: 544) 

Neutral, TP Rs 531 

Current auto element portfolio present process premiumization in keeping with  

business demand; additional upside in EVs  

Getting future prepared with EV powertrain associated element functionality 

 Raise FY23E/24E earnings by 15%/14% 

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 Jefferies on Cement 

Worst appears behind us 

Past 4qtrs have been difficult for the cement 

Majority of managements indicated that prices for Q2FY@3 are more likely to be flat/declining 

Cement pricing development Q3 to date is encouraging/constructive 

Volume development for previous 2 qtrs has turned strong and we anticipate the development to proceed 

(Disclaimer: The views/solutions/advises expressed right here on this article is solely by funding consultants. Zee Business suggests its readers to seek the advice of with their funding advisers earlier than making any monetary resolution.)