The Biggest Upgrades And Downgrades By Analysts In November
Axis Bank Ltd. and Marico Ltd. saw the biggest upgrade in analyst expectations in November on improving financials.
Axis Bank and Marico received six more ‘Buy’ ratings each in November, the most among the 278 stocks tracked by at least 10 analysts, according to the data compiled from Bloomberg. This is the highest number of upgrades for Axis Bank in a month since July 2014; and the most since February 2017 for Marico.
The improved analyst optimism comes as the Nifty 50 index gained 4.5 percent in November after two straight months of decline. Foreign investors turned net buyers during the month as crude prices eased and the rupee strengthened, while the central bank took multiple measures to ease liquidity for non-bank lenders.
Analysts turned more bullish on Axis Bank as an improving credit cycle is expected to improve its asset quality, and better net interest margin and lower valuations than peers could boost return on equity, according to brokerages. Marico’s operating performance beat estimates and volumes jumped even as raw material prices remained stable in the quarter ended September, according to its filings. Valuations of the maker of Parachute coconut oil remain reasonable compared to peers, according to Motilal Oswal.
LIC Housing Finance Ltd. received three fresh ‘Buy’ ratings as the non-bank lender’s share of income from high-yielding loan book increased and asset quality remained stable.
A better-than-estimated second quarter and proposed acquisition of Heinz India prompted analysts to upgrade Cadila Healthcare Ltd., while inexpensive valuations compared to peers worked for Mahanagar Gas Ltd.
Sun Pharmaceuticals Ltd. and Cipla Ltd. got two fresh ‘Sell’ recommendations each after below-estimate September-quarter earnings. JSW Steel Ltd. received one additional ‘Sell’ due to falling steel prices and concerns over leverage.
Biggest Change Price Targets
- Foreign exchange losses, higher diesel costs and concerns around container freight station business led to the highest cut in 12-month target price for Navkar Corporation Ltd.
- Higher slippages, negative asset-liability mismatch and liquidity crunch led analysts to lower the target price on Dewan Housing Finance Ltd.
- Expectation of sluggish performance in engineering and polymer product business prompted analysts to lower the return potential of Skipper Ltd. by 28 percent.
- Simplex Infrastructure Ltd.’s target price was lowered on expectations that liquidity crunch and rising interest rates may hurt its earnings.
- United Spirits Ltd. and Aditya Birla Fashion Ltd. saw the biggest increase in their target price after surpassing analyst estimates in the second quarter.