Wednesday's top brokerage calls: Adani Ports, ONGC, SBI Life and more

SUMMARY

The Indian market is likely to open flat Wednesday following mixed Asian peers. Morgan Stanley has added Jubilant Foodworks and removed Titan from its focus list while CLSA has cut EPS estimates for Varun Beverages by 60 percent. Here are the top brokerage calls for today.

By CNBC-TV18May 6, 2020 8:59:40 AM IST (Published)

FY21 will be tough for SBI Life, given volatile market & negative COVID-19 impact, Morgan Stanley said.

Soft realizations and higher operational expenditure in Q4 drove the miss for Adani Ports in its earnings review, Morgan Stanley said.

After being Underweight on ONGC for 3 years, Morgan Stanley has recently turned upgraded the stock. The brokerage sees energy demand in India recovering going ahead.

CLSA has cut EPS estimates for Varun Beverages by 60 percent as the company faces a sharp impact from the lockdown extension.

CLSA has maintained Neutral rating on SAIL with a target price at Rs 24 per share.

CLSA said that passenger vehicle and 2-wheeler recovery could take 3-6 months post lockdown.

Macro outlook is getting tough and recovery in financials is likely to be gradual, Morgan Stanley believes.

Morgan Stanley has added Jubilant Foodworks to its focus list and removed Titan as it believes QSR will be among the first beneficiaries of recovery in discretionary consumption.