Wednesday's biggest brokerage calls: IndusInd Bank, Tata Motors and more

SUMMARY

Indian equity markets are likely to open on a lower note on Wednesday, following Asian peers amid concerns related to the coronavirus pandemic slowing economic growth. Among brokerages, Morgan Stanley maintained 'overweight' call on IndusInd Bank, but slashed its target price by more than half. Here are the top brokerage calls for today:

By CNBC-TV18Apr 1, 2020 8:24:59 AM IST (Published)

Morgan Stanley on IndusInd Bank: The brokerage maintained 'overweight' stance on the stock but cut its target price to Rs 525 per share from Rs 1,130 earlier. It added that there is a significant downside risk to asset quality if the duration of the coronavirus lockdown increases.

Morgan Stanley on NBFCs: As per the brokerage, NBFC valuations are implying significant distress. It added that HDFC and Bajaj Finance are strongly positioned and have the ability to take 40 percent and 30 percent of additional bad loans respectively.

Morgan Stanley on Tata Motors: The brokerage was 'overweight' on the stock with a target of Rs 86 per share. It said that aggressive competition and the slow market has kept Tata Motors’ business in deep losses.

Morgan Stanley on Dr Lal Path Labs: The brokerage maintained 'underweight' call on Dr Lal Path Labs.

CLSA on Varun Beverages: The brokerage maintained 'buy' call on the stock and raised its target price to Rs 766 from Rs 750 earlier. It sees multiple growth levers beyond 2020 for Varun Beverages.

CLSA on Healthcare: The brokerage expects a shortages of testing kits and protective gear to ease in a few days. The pace of testing has increased but logistics disruption and high costs are roadblocks, it noted.

Macquarie on City Gas Companies: As per the brokerage, low natural gas price is positive for city gas companies. It added that the impact will depend on the volumes from transportation and residential segments.

Jefferies on COVID-19: Large fiscal stimulus is needed to minimise economic impact, said the brokerage. It added that large private financials, select consumer discretionary appear attractive.

Jefferies on Voltas: As per the brokerage the lockdown in India will impact Voltas’ air-conditioner sales in Q1FY21. The company's balance sheet strength will tide over tough times, it added.