Brokerage Reports: 18th December 2023

1. HSBC on Autos (2024 outlook):
– 2023 had favorable conditions (demand, launches, lower commodity prices, valuation boost).
– Unlikely to repeat in 2024, expect moderate returns.
– Risks: Rising commodity prices and demand slowdown.

2. HSBC on PI Industries:
– Buy, TP reduced to Rs 4100 from Rs 4400.
– Challenges for Pyroxasulfone affect PI’s CSM export growth.
– Impact might be softer than feared; management optimistic about FY24.

3. CITI on Infosys:
– Neutral, TP R$ 1565.
– Mega deals expected to boost future growth in 4QFY24.
– Decline in discretionary spends slowing, but challenges in specific sectors.

4. CITI on TCS:
– Sell, TP Rs 3170.
– Good deal wins, but clients pausing spending on existing business.
– Uncertainty persists; difficult to predict overall business improvement.

5. CITI on LTI Mindtree:
– Sell, TP R$ 4660.
– Client caution persists; Fed event might boost sentiment.
– Emphasis on cross sell/up sell; cautious optimism on investment returns.

6. CITI on Wipro:
– Sell, TP Rs 360.
– 3Q visibility unchanged; intense furloughs in BFSI and Tech.
– Discretionary spends scaled down, productivity focus, cautious hiring.

7. CITI on Tech Mahindra:
– Sell, TP Rs 1000.
– Regional focus for productivity, leadership hiring completed.
– Sector-specific challenges, cautious outlook.

8. CITI on HCL Tech:
– Neutral, TP Rs 1295.
– Discretionary spends pressured earlier, ER&D business impacted.
– Uncertain demand situation, low double-digit growth outlook.

9. CITI on Eicher Motors:
– Buy, TP Raised to Rs 4700.
– Steady Royal Enfield volumes despite competition.
– Nov’23 decline attributed to festive seasonality.

10. MS on Telecom:
– Reliance Jio’s current plans indicate a move towards premiumization.

11. Jefferies on Industrials:
– 2Q order flows up 67% YoY; L&T strong.
– Operating leverage boosts margins for ABB, Siemens, Thermax in 2Q.
– Top picks: L&T, Siemens, Thermax, KEI.

12. IIFL on Laurus Labs

– While we don’t have a specific rating on Laurus Labs, we suggest considering the stock for investment at prices below Rs350, as we estimate a fair value of Rs450 per share by March 2025.

13. INCRED on PG Electroplast:
– Downgraded to hold, TP Rs 2446.
– AC division major growth driver; competition may increase.
– Risk-reward not favorable.