Credit Suisse On Persistent Systems
- Initiated ‘Outperform’ with target price of Rs 960, implying a potential upside of 29.1 percent from yesterday’s close.
- Persistent is an attractive digital play; the company has transformed itself to address the larger enterprise digital opportunity.
- Expect digital exposure to be at least 40 percent and non-linear revenue to be 25 percent.
- Increasing share of high-growth businesses to drive overall growth.
- Product DNA, partnerships with growing platforms, and internet of things are key differentiators.
- Expect strong earnings revival over the financial years through March 2020.
- Expect revenue and earnings per share to grow at a compounded rate of 12 percent and 18 percent, respectively, over the financial years through March 2020.
- For best in industry growth, stock trades at reasonable valuations.
Axis Securities On Himadri Speciality Chemical
- Initiated ‘Buy’ with target price of Rs 238, implying a potential upside of 30 percent from yesterday’s close.
- New products to drive growth. Himadri deals in products widely used in high growth sectors. Foray into speciality product to add value.
- Entry barriers exists in form of technology and experience.
- Coal Tar Pitch - the flagship product has robust demand.
- Carbon Black - the new earnings driver.
- Value-added products to help improve margins.
- Expect revenue and net profit to grow at a compounded annual growth rate of 23 percent and 58 percent over the financial years through March 2020.
- Deserves premium valuations because of robust growth potential.
- Company has plans to raise capital using QIP route.
Macquarie On Bajaj Corp
- Initiated ‘Outperform’ with target price of Rs 637, implying a potential upside of 28.4 percent from yesterday’s close.
- Bajaj Corp. is a major play on a rural recovery in India.
- Strengthened core to help accelerate meaningful new launches; aid long-term growth potential.
- Bajaj can potentially have a portfolio of hair-oil brands.
- Bajaj Almond Drops remains a cash cow, but company to reduce dependence.
- Expect significant ramp-up in NoMarks over the financial years through March 2020.
- Expect volume, revenue, operating income and net profit to grow at a compounded rate of 7 percent, 17 percent, 19 percent and 15 percent, respectively, over the financial years through March 2020.
- Rural recovery to help boost volume.
- Bajaj Corp re-rating imminent on earnings pick-up and diversification.