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Buy, Sell, Hold: Here are 3 stocks that are being tracked by analysts today

A telecom major and a low cost carrier are among the three stocks that are being tracked by analysts today.

Brokerage: Kotak Securities

Kotak Securities said that the revenue miss was driven by weak topline in India, South Asia and Africa segments. The company doubled down on cost rationalisation in the wake of immense pressure on revenues. It observed that the performance of wireless business was impressive, given Jio’s continued free offerings in March. Further, it stated that the company’s Q4 performance indicates a legacy that can deliver a reasonably respectable outcome.

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 400  FREE STOCK  TIPS

The brokerage highlighted that while realisations fell, the impact was largely offset by volume growth in voice and data. The data usage of 54 percent YoY has reverted to pre-Jio levels. Mobile metrics suggest that the company is willing to match Jio’s price aggression in a bid to defend revenue share.

Brokerage: CLSA | Rating: Underperform | Target: Rs 365

The brokerage observed that a dilution in average revenue per user (ARPU) hit Indian mobile revenues for the firm. It lowered FY18-19 consolidated revenue and EBITDA estimates by 2 and 5 percent. Furthermore, it forecasts FY18 EBITDA to decline by 12 percent year on year. Higher operating cost for India business likely to continue given the company’s rising 3G/4G footprint.

Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 280

The brokerage observed that domestic wireless volume growth was robust. Severe pricing pressure led to revenue and EBITDA decline. Having said that, Africa and enterprise business performed well, with the margin seeing improvement on lower operating expenditure.

Petronet LNG

Brokerage: Kotak Securities | Rating: Add | Target: To be reviewed post concall

The brokerage termed Petronet’s Q4 EBITDA to be in line with its estimates despite modestly lower re-gasification volumes at 180 T BTUs. It said that the net income was boosted by sharply higher other income and lower tax rate. Furthermore, it said that Dahej plant’s utilization moderated to 93 percent amid high spot LNG prices. The 87 percent yearly jump in EPS reflects 26 percent rise in LNG offtake at Dahej and lowe international costs.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 403

The global brokerage firm believes that competition of Dahej expansion is well timed to capitalize on growing LNG demand. It expects earnings CAGR of over 20 percent over FY17-19 on expansion at Dahej facility and a ramp up at Kochi. It suspects that diversion of cargoes from Kochi to Dahej enabled the company to earn higher tariffs

Brokerage: Goldman Sachs

Goldman Sachs does not expect a major stock correction as EBITDA was weaker than consensus. It has put earnings estimates and 12-month target price under review.

InterGlobe Aviation

Brokerage: Axis Cap | Rating: Buy | Target: Rs 1,318

Axis Cap termed the airline’s Q4 revenue to be in line with the estimates, while operating profit was lower on account of higher ATF cost. It is now well placed to capture further market share led by ramp up in its expansion plan.

Simultaneously, stabilizing yields should ease margin pressure due to the company’s low cost structure, it said. Axis Cap also adjusted its fleet addition estimates in line with the revised management guidance and said that the carrier was approaching a fleet size of 131.

Brokerage: Motilal Oswal | Rating: Neutral | Target: Rs 1,234

The brokerage valued InterGlobe Aviation at 14 times FY19 earnings per share (EPS) to arrive at a value of Rs 1,234, implying 8 percent upside. It is modelling over 26 and 24 percent year on year ASK (available seat kilometer) additions for FY18/19.
 www.Shristocktips.com

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