Employees walk past electronic ticker boards that indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

4 Stocks That Got Favourable Rating From Brokerages

Brokerages initiated coverage on Himadri Speciality Chemical, Whirlpool and ICICI Prudential Life with a favourable rating. Meanwhile, research firm HSBC upgraded Gujarat Pipavav’s stock rating to ‘Buy’ from ‘Hold’ and also raised its price target.

Here’s what brokerages had to say:

Geojit On ICICI Prudential Life

  • Initiated ‘Buy’ with price target of Rs 450, implying a potential upside of 10.9 percent from Friday’s close.
  • Outlook on Indian life insurance sector remains bright.
  • Indian life insurance industry is at the cusp of enormous growth.
  • ICICI Life is well-positioned to capture the strong growth.
  • Best play on life insurance sector.
  • Expect ICICI Life to deliver 22 percent and 15 percent in return on equity and return on enterprise value in the next financial year.
  • Expect new business premium to grow at a compounded rate of 20 percent over the financial years through March 2019.
  • Strong brand and parentage; Well placed on distribution.
  • Remains outperformer in private life insurance despite challenging business environment.
  • Diversified multi-channel distribution network gives a competitive edge.
  • Under-penetrated market provides significant growth opportunity.

Equirus on Whirlpool

  • Initiated ‘Add’ with a price target of Rs 1,717, implying a potential upside of 12.1 percent from Friday’s close.
  • With favorable industry dynamics Whirlpool is well-poised for growth.
  • Plugging portfolio gaps to drive incremental volumes, improve brand image.
  • Distribution network expansion, new product launches to drive growth.
  • Revenue growth to be powered by refrigerators, WM and ACs.
  • Expect revenue, operating income and net profit to grow at a compounded rate of 19 percent, 21 percent and 20 percent respectively over the financial years through March 2020.
  • Stock trades at reasonable valuations.
  • Refrigerator segment – penetration levels to increase to 43 percent by March 2022.
  • Washing machines – Growth to be driven by fully-automatic machines.
  • Air conditioning segment – Split ACs to lead the way.
  • Focus on profitable growth to shore up operating income and net profit.

ICICI Direct on Himadri Speciality

  • Initiated ‘Buy’ with price target of Rs 245, implying a potential upside of 29.3 percent from Friday’s close.
  • Growth visibility is healthy with impressive capex and firm financing plans amid robust product demand.
  • Debt at controlled level; debt-to-equity steadily on decline.
  • Expect revenue, operating income and net profit to grow at a compounded rate of 22.7 percent, 29.3 percent and 38 percent respectively over the financial years through March 2020.
  • Expect Himadri to command premium valuations among its peers.
  • Coal tar pitch: Dominance to sustain; cash cow.
  • SNF a construction chemical is big opportunity.
  • Carbon black: Industry in sweet spot, Himadri a key beneficiary.
  • Advance carbon material to fetch high margins and boost earnings from March 2020.
  • Himadri is one of the only few listed players with exposure to Electric Vehicle.

HSBC on Gujarat Pipavav

  • Upgraded to ‘Buy’ from ‘Hold’; raised price target to Rs 174 from Rs 144, implying a potential upside of 8.1 percent from Friday’s close.
  • Pipavav is set to receive another two weekly services.
  • Rebound in India-China EXIM trade bodes well given exposure to Far East.
  • Earnings momentum to resume an upward trend in the near future.
  • These service wins along with improved trade outlook raised earnings estimate.