Goldman Sachs on Bandhan Bank
Goldman Sachs believes that the appointment of the new MD and CEO, along with the resolution of the CGFMU claim, eliminates immediate concerns. This allows the focus to shift to the bank’s fundamentals and removes uncertainty about business continuity after the management change.
Jefferies on Bandhan Bank
Jefferies has a “Buy” rating on Bandhan Bank with a target price of Rs 240. Partha Sengupta has been appointed as the new MD and CEO for three years. His previous experience as Deputy MD and Chief Credit Officer at SBI and as MD and CEO of IOB is seen as a positive factor. Additionally, the bank is set to receive Rs 3.1 billion from the CGFMU claim.
Investec on Bandhan Bank
Investec has a “Sell” rating on Bandhan Bank with a target price of Rs 180. They note a 24% recovery from the CGFMU claim and the new CEO’s appointment. However, they believe the overall financial impact of the CGFMU audit is less significant than expected and anticipate that the bank will eventually need to raise confidence capital to improve its capitalization.
Nomura on Credit Access Grameen
Nomura has downgraded Credit Access Grameen to “Reduce” and cut its target price to Rs 950. With upcoming state elections in Maharashtra, Bihar, and Jharkhand—regions that make up 28% of its total assets under management—there may be disruptions. Nomura also notes a sharp decline in disbursements and asset quality deterioration.
MS on Tata Elxsi
Morgan Stanley has a “Underweight” (UW) rating on Tata Elxsi with a target price of Rs 6860. They expect muted growth in the second quarter and believe that achieving revenue growth in fiscal year 2025 will be challenging. Although there may be recovery in the healthcare sector from the third quarter and some transportation deals might support growth, there is growing caution in the European auto industry and limited growth visibility in the media sector.
CLSA Technical View on PSU Index
CLSA points out that the PSU Index has broken down from a topping pattern observed from June to September. As long as the price remains below the resistance from the falling 50-day moving average, currently at 21,422, there is a risk of further declines. They specifically highlight downside risks for Coal India and PFC.
UBS on Kotak Bank
UBS has a “Neutral” rating on Kotak Bank, raising its target price to Rs 1950. They cite cyclical challenges affecting net interest margins and customer deposits, while credit costs are rising. The bank’s sensitivity to rate cuts is significant, and stability in core operations is crucial for a potential re-rating of the stock. They consider the current valuation fair, priced at 2 times the expected book value for fiscal year 2026.
CITI on Cipla
Citi maintains a “Buy” rating on Cipla with a target price of Rs 1870. They note that a China-based pharmaceutical company has received approval for a generic version of BMS’ Abraxane, which could capture a significant market share and potentially lower prices. However, if there are further delays in Cipla’s Goa facility resolution, the opportunity for the generic Abraxane could diminish. Currently, Abraxane contributes about 6-7% of Cipla’s expected earnings per share for fiscal years 2026-2027.
CITI on Indus Tower
Citi recommends a “Buy” on Indus Tower with a target price of Rs 500, viewing the recent share price drop as a buying opportunity. They see three key events to watch: the second quarter results, the conclusion of Vodafone Idea’s delayed bank funding, and a possible waiver of the bank guarantee by the government.
Nomura on Credit Access Grameen
Nomura has downgraded Credit Access Grameen to “Reduce” from “Neutral” and cut its target price from Rs 1,100 to Rs 950. They see multiple headwinds and an uncertain outlook, noting a significant decline in disbursements and asset quality. The issues with asset quality are viewed as medium-term challenges for the microfinance sector rather than short-term cyclical problems.
Jefferies Greed & Fear
Jefferies is adjusting its relative-return portfolio in the Asia Pacific excluding Japan, increasing the weighting of China by half a percentage point while reducing India’s weighting by the same amount.
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