Top brokerage calls for August 23: CLSA bullish on DLF, IndusInd Bank; Citi 'neutral' on IndiGo

SUMMARY

Indian benchmark indices, the S&P BSE Sensex and NSE’s Nifty 50, are set to open little changed on Friday amid cautious trades in the global markets. On Thursday, the stocks plunged over 1.5 percent in the absence of any relief measures from the government. Among brokerages, CLSA is bullish on DLF and IndusInd Bank. Here are the top brokerage calls for Friday:

By CNBC-TV18Aug 23, 2019 8:05:49 AM IST (Published)

Morgan Stanley on Future Retail-Amazon deal: Amazon is making an equity investment, acquiring 49 percent stake in Future Coupons, which is a promoter group company that currently holds a 7.3 percent stake in Future Retail. The brokerage expects the proposed transaction to be at a 'significant' premium to the warrant issue price of Rs 505 per share. Amazon is also likely to adopt the hybrid model in India, it added.

CLSA on IndusInd Bank: The brokerage has a 'buy' call on the stock with a target at Rs 2,160 per share. FY19 annual report shows that the deposit franchise needs to be strengthened, it says, adding that retail and corporate business showed healthy growth but credit costs dragged profit.

CLSA on DLF: The brokerage has a 'buy' call' on the stock with a target price of Rs 228 per share. Management mounts a credible defence as an old legal matter pops up, CLSA says, adding that the issue raised in the petition filed before SC is indeed immaterial. However, news flow risk remains in the near term, it explains.

Citi on IndiGo: July growth for the aviation industry is a tad slower than the 6 percent levels witnessed in June, the brokerage said in a report. Citi remains 'neutral' on the stock as the conflict between promoters remains an overhang. It also added that market share trends would be more organic and steady in the near future.