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    Analyst Calls: Hindustan Zinc, Tata Power, HCL Tech, Info Edge

    Synopsis

    Edelweiss has maintained hold rating on Hindustan Zinc and revised target price lower to Rs 225 from Rs 255.

    stock market 4-gettyGetty Images
    CLSA has maintained buy rating on Info Edge India with a target price of Rs 2,400.
    Good morning!

    The domestic stock market on Monday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 86.50 points higher this morning, signalling a good start for Dalal Street.

    As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

    . Edelweiss has maintained hold rating on Hindustan Zinc and revised target price lower to Rs 225 from Rs 255. Despite potential gains from a volume uptick and cost-reduction initiatives, the brokerage expects Hindustan Zinc’s stock performance to remain tepid amid lower LME zinc prices. In light of the unfavourable LME zinc price outlook, the brokerage has trimmed the stock’s valuation to 11 times from 12.5 times P/E. Shares of The stock ended up 3.5 per cent at Rs 217.40 on Friday.
    hzinc-graph

    • ICICI Securities has maintained buy rating on Tata Power Company with a target price of Rs 87. Tata Power, through its whollyowned subsidiary Khopoli Investments Ltd, announced divestment of its entire 50 per cent stake in Cennergi (Pty), a South African JV. The brokerage expects this along with other anticipated divestments, to aid in partial repayment of non-core debt resulting in an earnings CAGR of 29 per cent over FY20-FY21 with EBITDA of Rs 99 billion growing at 5 per cent CAGR. The stock ended up 3.6 per cent at Rs 67 on Friday.


    • Prabhudas Lilladher has maintained buy rating on HCL Technologies with a target price of Rs 1,210. The brokerage said its meeting with management of HCL Technologies has increased its conviction in the growth trajectory of their organic and product business in FY20. The company is on its way to deliver industry leading organic growth of and meet its margin guidance of 18.5-19.5 per cent in FY20, said Prabhudas Lilladher. The company is confident of its ability to win mega deals, the brokerage said.The stock ended flat at Rs 1,049.70 on Friday.

    • IIFL has maintained add rating on Vardhman Textiles with a target price of Rs 1,050. In contrast to healthy 32 per cent EBITDA growth witnessed in FY19 on the back of expanding yarn spreads and improving product mix, Vardhman Textiles’ FY19 annual report expects demand uncertainty post the US-China trade war to weigh on FY20 yarn spreads, said IIFL. The brokerage expects weak yarn spreads in H1 to drive 250 bps moderation in EBITDA margin to 14.9 per cent. This along with the last phase of capex spends should moderate RoCE to 12 per cent, said IIFL. The stock ended down 1.8 per cent at Rs 921.80 on Friday.

    • CLSA has maintained buy rating on Info Edge India with a target price of Rs 2,400. Info Edge’s stock has moderated following negative newsflow in Zomato and some moderation in its hiring, the brokerage said. With solid long-term growth drivers across the four parts of the business, the brokerage said this provides an attractive entry point. Info Edge remains a scarce listed internet firm that plays into long-term digitisation of recruitment, realty, food and financial products with several dominant or leading platforms, said CLSA. The stock ended up 7.7 per cent at Rs 2075.05 on Friday.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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