Monday's top brokerage calls: GDP growth, Voltas and more

SUMMARY

India's gross domestic product (GDP) growth fell to 3.1 percent in January-March 2020 quarter, according to official data released on Friday. For the full fiscal, the Indian economy grew by 4.2 percent against 6.1 percent expansion in 2018-19. Here is what brokerages make of the GDP growth and other top brokerage calls for the day:

By CNBCTV18.comJun 1, 2020 8:52:06 AM IST (Published)

CLSA on GDP: GDP growth is above estimates, said the brokerage. It revised real GDP forecast for FY21 further down to -44 percent from -2.6 percent.

Kotak on GDP: The brokerage maintained its FY21 GDP growth estimate at (-)5.8 percent versus 4.2 percent in FY20.

HSBC on GDP: The brokerage expects a 3 percent YoY GDP contraction in 2020. Growth is likely to have contracted in April but recovered gently in May, it added.

Morgan Stanley on Voltas: The brokerage maintained 'equal-weight' call on Voltas after the cooling solutions major announced Q4 results on Friday.

Jefferies on Voltas: The brokerage believes Voltas’ Q4 results will be viewed positively in the context of the current pandemic.

Nomura on CEAT: The brokerage maintained a 'reduce' call on the stock with a target at Rs 754 per share. CEAT’s revenue decline in Q4 is in-line with consensus but weak demand remains a worry, said the brokerage.

Credit Suisse on Lupin: The brokerage downgraded the stock to 'neutral' from 'outperform' and raised the target to Rs 820 per share from Rs 690 earlier. It also raised FY21 EPS estimates by 20 percent due to lower Solosec spend and tax guidance.

Credit Suisse on ConCor: The brokerage upgraded the stock to 'outperform' from 'underperform' with a target at Rs 475 per share. It said that valuations are reasonable at current levels.