Good morning! The domestic stock market on Friday showed early signs of a possible breakout from its consolidation range.
And Nifty futures on Singapore traded 49 points higher this morning, signalling a good start for Dalal Street. • Kotak Securities has maintained buy rating on KNR Constructions and cut target price to Rs 226 from Rs 333.
The current lockdown is expected to negatively impact earnings in the near to medium term, said Kotak Securities.
The brokerage has assumed order inflows of Rs 1,500 crore for FY20 against Rs 2,500 crore earlier and assumed order inflows of Rs 2,000 crore against Rs 3,000 crore estimated earlier.
The stock ended down 0.15 per cent at Rs 196.10 on Wednesday. • Kotak Institutional Equities has upgraded Axis Bank to buy from reduce.
The brokerage said the upgrade reflects the correction in valuation multiples, strong liability franchise and a slightly different entry point into this slowdown for the bank which should result in faster recovery in business momentum as it moves into a more normalised environment.
The brokerage has revised its fair value to Rs 620 from Rs 740, cutting estimates by around 20-25 per cent to address these concerns.
The stock ended down 5.5 per cent at Rs 358.45 on Wednesday. • Credit Suisse has maintained outperform rating on Inter-Globe Aviation with a target price of Rs 1,850.
IndiGo could have large losses between the fourth quarter of Fy20 and the first half of FY21, eroding around 75 per cent of net worth, said Credit Suisse.
The brokerage has retained outperform rating on strong long-term growth across several parameters.
The stock ended down 6.41 per cent at Rs 999.75 on Wednesday. • Edelweiss has maintained buy rating on Coal India with a target price of Rs 160.
Coal India's March performance was a tale of two extremes with production surging 7 per cent year-on-year to 84 MT, which is the highest ever monthly level, and sales volume falling 10 per cent.
The brokerage said it finds Coal India attractive due to sound balance sheet and undemanding valuations.
The stock ended down 0.4 per cent at Rs 139.40 on Wednesday. • Maybank Kim Eng Securities has maintained buy rating on Hexaware Technologies and cut target price to Rs 310 from Rs 340.
In a report tieled ‘Covid-19 impact priced in’, the brokerage said Hexaware's exposure to impacted industries such as travel, education and fitness is about 15 per cent of revenue.
Maybank said the stock is trading below 2 standard deviations of its five-year mean.
Strong management team and improving revenue mix keeps its well placed to capture demand, and client concentration risk is also declining, said Maybank.
The stock ended flat at Rs 226.25 on Wednesday.