Top brokerage calls for October 24: CLSA, JP Morgan raise target price for Bajaj Auto, Morgan Stanley remains 'underweight' on HCL Tech

SUMMARY

Bajaj Auto on Wednesday reported better-than-expected Q2 earnings. The standalone net profit this year came in at Rs 1,402 crore v/s Rs 1,152.48 crore last year, an increase of 22 percent year-on-year (YoY). HCL Technologies posted a 6.9 percent rise in its consolidated net profit to Rs 2,711 crore for the September 2019 quarter and raised its revenue growth forecast to 17 percent for 2019-20. Among brokerages, CLSA and JP Morgan raised the target price for Bajaj Auto. Morgan Stanley maintained an 'overweight' call on L&T. Here are the top brokerage calls for today:

By Mousumi Paul Oct 24, 2019 8:54:42 AM IST (Updated)

Morgan Stanley on L&T: The brokerage maintained an 'overweight' call on the stock with a target price of Rs 1,753 per share. The brokerage believes key positives include core revenue growth, infrastructure margin and return-on-equity.

Macquarie on Havells: The brokerage maintained 'underweight' on the stock with a target price of Rs 586 per share. It said that the company's electrical business is a bigger worry. The consensus sees earnings cut as valuation remains untenable, the brokerage added.

Macquarie on HCL Technologies: The brokerage maintained its 'outperform' rating on the stock with a target price of Rs 1,340 per share. According to the brokerage, the company's results were in-line at the revenue level.

JP Morgan on Bajaj Auto: The brokerage maintained an 'underweight' rating on the stock and raised its target price to Rs 2,450 per share from Rs 2,400 earlier.

CLSA on Bajaj Auto: The brokerage maintained the 'sell' rating on the stock and raised its target to Rs 2,800 per share from Rs 2,525 earlier. CLSA said that the export growth rates are moderating on a high base.

Morgan Stanley on HCL Technologies: The brokerage maintained an 'underweight' call on the stock but increased the TP to Rs 1,090 per share. The brokerage said the company's organic growth rates have been better than the peers'.