Brokerages raise target price in these 3 stocks post Q2 results

-

Brokerages have raised target price on HUL, Infosys and Avenue Supermarts, while maintained their rating post their Q2 numbers.










The Indian market has been witnessing volatility in the last few session as the earnings season kicked off for Indian Inc. Concerns over the US-China trade deal, stressed financial sector and expectation of a further stimulus by the government have also added kept investors on their toes.
Analysts expect the earnings to remain tepid this quarter. Meanwhile, some of the companies have already declared their earnings for the quarter ended in September 2019.

HUL, Infosys and Avenue Supermarts are the three companies that got a pat on the back from the brokerages after their Q2FY20 results.
The company reported a 5.8 percent sequential growth in Q2FY20 with its net profit at Rs 4,019 crore. Revenue during the quarter rose 3.8 percent QoQ to Rs 22,629 crore, while in dollar terms revenue rose 2.5 percent at $3,210 million.
KR Choksey has reiterated accumulate rating on Infosys and revised target price to Rs 893 per share (previous target Rs 792) with an upside potential of 10 percent.
The brokerage house expects the company to continue this momentum
going forward as it plans to invest heavily in the expansion of digital segments in the areas like Data Analytics, Cloud computing, and IoT.
ICICIdirect has maintained its hold rating on the stock with a revised target price of Rs 885.
It expect revenue growth to moderately surpass the upper guided band and margins are likely to see an improving trajectory from here on. They expect margins to expand to 23 percent in FY21E.
Avenue Supermarts 
D-Mart operator, Avenue Supermarts posted a 47.54 percent year-on-year jump in its net profit at Rs 322.63 crore, while revenue increased 22.26 percent to Rs 5,998.90 crore. Its EBITDA rose 32.3 percent to Rs 515.4 crore and the EBITDA margin was up 8.66 percent.
ICICIdirect reiterated reduce rating on the stock with a revised target price to Rs 1,700 from the previous target price of Rs 1,450.
On the back of the recent corporate tax rate cut, it revises earnings estimates upwards by 15 percent.
Hindustan Unilever 
FMCG major Hindustan Unilever (HUL) registered a 21 percent year-on-year jump in its net profit at Rs 1,848 crore. Its EBITDA was at Rs 2,443 crore, up 21 percent. The domestic consumer segment of the company grew by 7 percent with underlying volume growth at 5 percent.
Prabhudas Lilladher retained it accumulate rating but raised the target to Rs 2,083 from Rs 1,967 per share.
It has cut the company's FY20 and FY21 EPS by 1.1 percent and 2.6 percent despite 5 percent volume growth and strong margin expansion on account of delayed rural recovery despite good monsoons, limited scope to increase margins from the current level and liquidity issues in trade channels.
ICICIdirect maintained its hold rating on the stock with a target price of Rs 2,075.
Broking house feels that the company is best placed within the sector to use this windfall to balance between strengthening its competitive position and improving profitability.
Source By: Moneycontrol
Professional Advisory For Help And Support- AllianceResearch

Comments

Post a Comment

Popular posts from this blog

Technical picks- Top 15 stocks that experts are betting on for 14-70% returns in FY20

-
Technical picks: 15 stocks that experts are betting on for 14-70% returns in FY20, If the momentum continues, the index is all set to climb Mount 12K and hit a target around 12,400-12,700 in the next 12 months, according to experts. Nifty50 has rallied about 13 percent so far in FY19 and if experts are to be believed, it is on track to hit fresh record highs in FY20. The optimism in market lately has been on the back of hopes of a stable government post elections, strong buying by foreign investors, rate cut by Reserve Bank of India and stability in rupee-dollar pair. Historically, we have seen a decent rally in the market before and after the general elections. This year also, Nifty has formed a new base in the 10,600 – 11,000 zone and has been witnessing pre-election rally in the last few weeks. If the momentum in market continues, Nifty could touch 12,000 and hit a target around 12,400-12,700 in the next 12 months, according to experts. “If we go by the principle of ‘
Read more

What is a Trading Plan?

-
Image
How many times have you had a position to go against you? You planned the trade correctly, but soon after you bought your initial position, you discovered that the price you paid was higher than what it was now worth. The first trade was a loser compared to the market price. What could you do with this losing trade? You could sell it out and look to buy something else, or you could buy a few more shares or contracts at the new lower price. Which is the better solution to your dilemma? In most cases, Most people, however, would buy more at lower prices. They would average their losses on the way down if they are buying, or average their losses on the way up if they are shorting. There's an old saying that if it looked good at a higher price, it looks a lot better at a bargain price. Traders determine whether they will average or not by looking at what they are trading: stocks,  options , or futures. Let's look at each of these trading vehicles in terms of averaging
Read more
-
Image
Cash market is a marketplace where the immediate settlement of commodities takes place in this market between the purchaser and the seller. This is also known as spot market cash market transactions take place over the counter or in a regulated exchange in contrast transactions take place exclusively on exchange. The price of the cash market is usually less than the futures market this market has two day delivery period due to the time duration to move cash from one place to another. In this market most speculative retail trading is done as spot transactions are on an online platform in this market the moral context speculation is considered negatively. Then there is also a part of this market known as the energy spot market where surplus energy producers instantly spot purchasers or buyers for energy and negotiate prices within milliseconds and deliver the energy. In this market, securities are traded in a possibly changing current market place. Cash market is differen
Read more