Brokerage Research Reports share price target

While markets have rallied in anticipation of the faster economic recovery, valuations of stocks may have run up ahead of themselves. As a marked strategy of safety first, we believe that chasing stability with a healthy dividend yield would be an astute approach to follow

Markets have been witnessing the fastest rally in recent times across the globe.

High dividend yield stocks

L&T; Technology Services (LTTS), a niche play on ER&D; services, is on the cusp of high-growth trajectory steered by potent catalysts: 1) ongoing strong digital and IoT wave to spearhead ER&D; growth; 2) T30A3' strategy is well etched out to ramp up LTTS's offerings to top-30 clients and target adjacent three customers in each vertical; 3) well-diversified presence across verticals along-with lower top clients' concentration insulates its revenues in downturns; and 4) strong parent in L&T; LTTS leverages on strong engineering capabilities and relationships of L&T.;...

The cement industry, after witnessing a healthy demand growth of ~13% in 2018-19, exhibited slowdown with de-growth due to various factors like general economic slowdown, general elections in April-May'19, extended monsoons, low capex on infrastructure, financial stress in the NBFC and housing sectors and lastly the outbreak of Covid-19 which impacted construction activities leading to de-growth for FY20, first time in the last two decades. The nationwide lockdown amid the coronavirus outbreak will have a significant near-term impact on the cement industry. Once the...

New class of HIV treatment could end the road for Indian players. We raise red flag over Indian drug suppliers who are exposed to Global Fund and sovereign Institutional tender business as the spread of Covid-19 could divert global attention away from serious diseases (Malaria, TB, and AIDS) and the new class of HIV treatment could end the road for Indian ARV (Antiretroviral) suppliers. The immediate threat to Indian suppliers because of Corona virus (SARS-nCOV2) will be felt in near to medium term as 1) COVID has disrupted 85% Global Funds activities for HIV, TB and malaria...

quality and earnings over FY21-22. Consequently, GNPA & credit costs estimates stand tweaked to 9.3% for FY21 (earlier 7%). While our estimates (EPS up by 6% for FY21 and 1-2% FY22-23E) sufficiently incorporate rural-led tractor and pre-owned recovery translating into better NII and anticipated higher other income, the same should stand offset by continued elevated provisioning (CC at 530bps FY21, 300bps FY22). Moreover, capital raising coming at a huge dilution is translating into low order RoEs (7-10%: FY2223E) at current expensive valuations (2xPABV FY23E). With structurally low return profile offering no respite, we reiterate REDUCE rating with SoTP target...

LTI reported a resilient Q1FY21, inline with our forecast on operational basis. Revenue declined by 4.7% QoQ in CC in-line our forecast of -4%. EBIT margin of 17.4%, improved 70bps QoQ, vs. our forecast of 17.1%. Further, higher treasury income resulted in EPS of Rs23.9, -2.4%/16.6% QoQ/YoY, being a big beat to our forecast. LTI has secured 1 large deal with net-new TCV of US$20 mn. It has added 1 more Fortune 500 client taking the total to 67. LTI confirmed that the deal pipeline is up 19% YoY. Further, it expects Q2FY21 revenue to see a QoQ growth. We largely maintain our FY21/22E revenue forecast but increase EPS forecast by...

NIFTY EPS cut by 14.4% and 12.1% for FY21 and FY22: FY20 turned out to be a year with flat NIFTY EPS at 444. We have cut our FY21 and FY22 Nifty EPS by 14.4% and 12.1% and introduced FY23 EPS nos. we now estimate 3% decline in NIFTY EPS for FY21, 34% growth in FY22 and 18% growth in FY23. As FY22 will be a year over a covid-29 base FY23 will be first year of normal growth. While our FY21 EPS estimates are higher than consensus by 2.1%, they are lower than consensus by 3.2% and 7.1% for FY22 and FY23 respectively. Auto, Telecom, BFSI and Metals will be key driver of earnings in FY23 while FY22...