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4 Stocks That Got Favourable Rating From Brokerages

Brokerages initiated coverage on Himadri Speciality Chemical, Whirlpool and ICICI Prudential Life.

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)
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)

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.