Monday's top brokerage calls: Reliance Industries, ICICI Bank and Federal Bank

SUMMARY

Morgan Stanley believes Reliance Industries' Q2 results beat adds a tailwind to the earnings upgrade cycle and, Credit Suisse says rising core profitability and lower credit costs are likely to drive ICICI Bank's return on equity higher. Here are the top brokerage calls for the day:

By CNBCTV18.comOct 25, 2021 8:31:25 AM IST (Published)

Credit Suisse on ICICI Bank | The brokerage has raised its earnings per share estimates by 6-9 percent for FY22-FY24 taking into account stronger net interest margins. Rising core profitability along with lower credit costs are likely to drive return on equity higher, Credit Suisse said.

Morgan Stanley on Reliance Industries | The brokerage believes Q2 results beat adds a tailwind to the earnings upgrade cycle. Refining, broadband subscribers and retail margin should drive 16 percent upgrades in 2022, according to Morgan Stanley.

Morgan Stanley on Federal Bank | While maintaining its 'overweight' rating on shares of the lender, Morgan Stanley said that the bank's Q2 earnings has surprised positively. Federal Bank is well-positioned to manage margin as the interest rate cycle turns, the brokerage said.

CLSA on ICICI Bank | The brokerage noted that the bank has now consistently been delivering sector-best growth. Recent asset quality trends indicate that credit costs will likely undershoot, CLSA said.