Analyst Calls: Suven, Sadbhav Engineering, Future Lifestyle, PNC Infratech

stock market 4-getty

The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 25 points lower this morning, signalling a weak start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

• Anand Rathi has maintained its buy rating on Suven Life SciencesNSE 0.75 % with a target price of Rs 387. The brokerage expects sales coming from specialty chemicals to improve further with the revenue expected to grow by 5 per cent over FY20. The brokerage has raised the margins of the company to touch 16.7 per cent in FY20 and 22.8 per cent in FY21 on the back of lower than anticipated research and development cost. Shares of Suven Life Sciences closed 0.36 per cent higher at Rs 302.9 on Tuesday.

• Yes Securities has maintained buy rating on Sadbhav EngineeringNSE 2.84 % with target price of Rs 168. The brokerage expects the project execution to pick up in the next two quarters. Further, the debt is likely to decline with repayment of loans by Sadbhav Infrastructure Properties from the funds to be received from sale of build operate and transfer (BOT) projects. Also, the company expects receipt of appointed dates for two projects worth Rs 16 billion over next couple of months. Shares of Sadbhav Engineering closed 4.6 per cent higher at Rs 122.5 on Tuesday.

• Edelweiss Securities has maintained a Buy rating on Jindal Stainless with a target price of Rs 65. The brokerage said it remains upbeat on Jindal’s potential volume ramp-up and deleveraging of balance sheet. The company has outperformed its listed global peers in quarter ending September despite challenging macroeconomic environment. In last three years, the company has repaid Rs 17.6 billion in standalone debt and is targeting repayment of another Rs 2 billion in FY20. Shares of Jindal Stainless closed 3.6 per cent higher at Rs 38.5 on Tuesday.

• Emkay Securities has maintained a Buy rating on Future Lifestyle Fashion with a target price of Rs 560. Growth outlook continues to be strong, however balance sheet improvement with working capital/debt reduction will be the key triggers, the brokerage said. The company also plans to drive further improvement in net working capital, capex and reduction in rental expenditure going forward. Shares of Future Lifestyle Fashion closed at Rs 405 apiece, up by 2.5 per cent on Tuesday.

• HDFC Securities has maintained a Buy rating on PNC InfratechNSE 0.54 % with a target price of Rs 340. According to the brokerage, PNC has been delivering robust performance for past six-seven quarters as entire order backlog worth Rs 98.7 billion has moved into execution. Also, as NHAI bidding picks up PNC is well placed to bag new orders. Net debt of PNC has reduced from Rs 4.4 billion in first quarter of FY20 to Rs 1.4 billion. Shares of PNC Infratech close 2.1 per cent higher at Rs 191.8 on Tuesday.


Author: Roky