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CCL is India’s largest manufacturer and exporter of instant coffee with a market share of ~28%. It supplies to more than 60 countries and has established long term relationships with customers.
We feel investors could BUY the stock at CMP and add on declines to Rs 164-168 band (13x Dec-20E EPS) for sequential targets of Rs 209.5 (16.5x Dec-20E EPS) and Rs 222.5 (17.5x Dec-20E EPS) in three to four quarters. At a CMP of Rs 186, it is trading at ~14.6x Dec-20E EPS.
Wipro Ltd is the third largest Indian IT services company and the largest third-party BPO operator in India. It has the widest range of services, including systems integration, IT-enabled services, package implementation, software application development & maintenance, and R&D services.
We think investors could BUY the stock at the CMP and add on declines to Rs 269-273 (11.0x FY20E EPS) band for sequential targets of Rs 346 (14.0x FY20E EPS) and Rs 393 (16.0x FY20E EPS) over 3-4 quarters. At the CMP of Rs 305 the stock trades at 12.4x FY20E EPS.
We have revised our multiples downward due to the above reasons, revised our FY19 and FY20 estimates and our revised target is Rs 280 (10x FY20E EPS).
TCI has been performing well for the past 4 quarters posting good revenue growth and profit growth across segments. GST roll out is expected to further help company continue its growth in the Freight and the SCS business.
We feel investors could buy the stock at the CMP, and add on dips to the Rs 320-324 band (30x FY20E EPS) for sequential targets of Rs 396 (37x FY20E EPS) and Rs 412 (38.5x FY20E EPS). At a CMP of Rs 354.9, the stock trades at 33.3x FY20E EPS.
We have valued the company on SOTP basis. We feel investors could buy the stock at the CMP and add on declines to the Rs 227-231 band for sequential targets of Rs 279 and Rs 295 in 3 to 4 quarters.
The RBI increased the Repo Rate by 25bps to 6.25%. Reverse Repo Rate increased by 25bps to 6%, Cash Reserve Ratio stays at 4%. Policy stance unchanged at ‘Neutral’.
L&T is the market leader for any large infrastructure project in India, and is a proxy for infrastructure development. Revival of domestic capex and higher crude prices would benefit the company in terms of higher order inflows inthe domestic market, as well as from international (especially Middle East) markets.