Top brokerage calls for July 25: Morgan Stanley 'overweight' on Bharti; CLSA maintains 'sell' rating on Asian Paints

SUMMARY

Indian shares looked set for a positive start on Thursday, as investors are likely to pick beaten-down stocks after five days of continued selling. While the US stocks surged to record highs as chipmakers rallied, Asian shares remained cautious as the euro hovered near two-month lows on bolstered expectations of rate cuts in Europe. At 7:15 AM, the SGX Nifty futures traded 23.50 points higher at 11,296, pointing to a positive start for the Sensex and the Nifty 50.

By CNBC-TV18Jul 25, 2019 8:16:06 AM IST (Updated)

HSBC on Steel sector: The brokerage believes that there could be more disappointment for the sector in Q1 as steel price recovery remains elusive on weak demand. It maintains 'hold' rating on Tata Steel and JSW Steel.

Morgan Stanley on Bharti Infratel: The brokerage is 'overweight' call on the stock with a target price at Rs 323 per share. It notes that the company's quarterly revenue is in-line with estimates, but the EBITDA is weak.

CLSA on Jubilant FoodWorks: The brokerage is positive on the stock but cut its target price to Rs 1,400 from Rs 1,500. It adds that the stock would be range-bound until the same-store growth picks up.

CLSA on Asian Paints: The brokerage has a 'sell' rating on the stock but raised the target to Rs 1,300 from Rs 1,285. Asian Paints’ near-15 percent volume growth is a big positive surprise despite the sluggish auto trend, the brokerage noted.

Morgan Stanley on Shriram Transport: The brokerage is 'overweight' on the stock with a target price at Rs 1,350 per share. PAT is marginally better than expectations and asset quality was in-line with seasonality, it adds.

Morgan Stanley at Canara Bank: The brokerage is 'underweight' on the stock with a target at Rs Rs 220 per share. Lower margins and sequential rise in slippages are the key negatives, while lower than expected other operating expenses were key positive, the brokerage said.

Morgan Stanley on ICICI Prudential Life: The brokerage is overweight on the stock with a target at Rs 450 per share. It expects premium growth to recover through the year with help from favourable base.

Morgan Stanley on IDFC First Bank: The brokerage is underweight on the stock with a target price of Rs 30 per share.