UBS upgrades RIL to buy; JP Morgan initiates coverage on Sona BLW

Sona BLW is an auto component supplier of differential gears and trades at a premium valuation compared with global peers. “The greater premium leaves a low margin of safety for the stock with a downside risk,” it said.

The brokerage, meanwhile, maintained its overweight stance on

with a target price of Rs 1,400, which is about 46 per cent above its previous close of Rs 960 as steel prices have bottomed in India given limited imports.

It expects a sequentially muted performance in Q2 as prices created upside risk to consensus estimates. “Lower coking coal price will drive an earnings rebound in the second half of the current year.”

Tata Steel posted a 21 per cent fall in its consolidated net profit to Rs 7,714 crore for the April-June quarter due to higher costs of materials and finance costs. The domestic steel major had reported a net profit of Rs 9,768 crore in the same period of 2021-22.

UBS has upgraded

to buy from neutral with a target price of Rs 3,150 on the back of new energy opportunities. “New energy will become the growth engine of all segments. Retail and Jio are moving on a faster than expected growth trajectory,” it said.

CLSA said while ‘s loan growth remains slugging, pre-provision operating profit (PPOP) growth is picking up. It has suggested a buy rating on the lender with a target price of Rs 975, which hints at about a 35 per cent upside.

“Retail liability momentum is key to a larger rerating and margins surprised positively,” it said. “Retail term deposit momentum needs to pick up and is a key rerating driver.”

Axis Bank reported a 86 per cent jump in its consolidated June quarter net profit at Rs 4,380.59 crore, helped by a steep fall in the amount set aside for bad loans. The third largest private sector lender, on a standalone basis, witnessed a 91 per cent increase in the net profit at Rs 4,125.26 crore.

Morgan Stanley has maintained its overweight stance on

with a target price of Rs 230 for the lender even as core pre-provision operating profit (PPOP) was 38 per cent below estimates on lower revenue.

It said that the growth appears less profitable and the loan growth was strong. “Non-core earnings were strong and drove PAT beat,” the broker added.

Canara Bank reported a 72 per cent rise in net profit led by retail loan growth and a strong increase in other income. The PSU lender reported a net profit increase to Rs Rs 2,022 crore in the quarter ended June 2022.

Similarly, Morgan Stanely has also maintained its overweight rating on

with a price target of Rs 1,100 as it believes that margin pullback can be sharp given higher operating leverage.

TechM has reasonably strong growth and good FCF yield but the company, like its peers, disappointed on the margin front, it said.

The Mahindra group’s Tech Mahindra reported a 16.4 per cent slide in June quarter net profit at Rs 1,132 crore as its margins narrowed due to a slew of factors. The fifth-largest IT exporter in the country had posted a net profit of Rs 1,353 crore in the year-ago period.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)