Top brokerage calls for November 4: Nomura cuts YES Bank's target price, Citi maintains 'sell' on Dr Reddy's

SUMMARY

Yes Bank on Friday posted a net loss of Rs 600.1 crore during the September quarter due to a one-time deferred tax asset (DTA) adjustment of Rs 709 crore on account of changes in the corporate tax rate regime. Nomura is 'neutral' on the stock, while Macquarie has put an 'underperform' call. Here are the top brokerage calls for Monday:

By CNBC-TV18Nov 4, 2019 7:59:17 AM IST (Published)

Nomura on YES Bank: The brokerage maintained a 'neutral' rating on the stock and cut its target to Rs 63 per share from Rs 110 earlier. The brokerage said that raising capital could resolve near-term solvency issues, but the path to recovery looked challenging.

Macquarie on YES Bank: The brokerage has an 'underperform' rating on the stock with a target at Rs 50 per share. According to Macquarie, credit cost estimate could surprise negatively, adding that it seriously doubts the bank management's ability to assess risk.

Citi on Dr Reddy's: The brokerage put a 'sell' call on the stock and raised its target to Rs 2,600 per share from Rs 2,375 earlier. According to the brokerage, multiple one-off factors were reflected in its Q2 results and the US revenue surprised negatively even after adjusting for one-offs. It added that meaningful upside would require a pick-up in business momentum.

Nomura on Dr Reddy's: The brokerage put a 'buy' call on the stock with a target at Rs 3,284 per share. Dr Reddy's earnings estimates for FY21 and FY22 remain unchanged.

Nomura on auto sales: According to the brokerage, volume decline was lower in October compared to the past few months. It added that industry retailed much higher than wholesales due to the festive season. It put 'buy' recommendations on M&M and Ashok Leyland among original equipment manufacturers (OEMs) and maintained 'reduce' on Eicher Motors and TVS Motor.