JPMorgan is overweight on the stock with a target price of Rs 1,500. The research firm is positive on the stock and said it was one of its top picks. The bank’s qualified institutional placement (QIP) worth USD 650 million was a positive trigger for the stock. Furthermore, it feels that the issue will remove a overhang from the stock and improve its balance sheet.
Deutsche Bank has reiterated its buy call on the stock with a target price of Rs 356. The National Company Law Tribunal (NCLT) on Thursday approved the merger of Cairn and Vedanta. Based on that, the analyst firm highlighted that only a nod from the petroleum ministry was pending. The research firm expects the merger completion in by the first quarter of FY18. It also sees a potential to re-rate the stock and it could provide further upside.
Citi has retained a buy call with a target of Rs 850. It believes that the valuation discount to Zee has narrowed over the past year. Moreover, Tamil dominance will aid growth to the firm, it said.
Credit Suisse has maintained an outperform rating with an unchanged target of Rs 630. However, it is sanguine on volumes and margin of JLR. It sees platform consolidation to help offset rise in incentives. The research firm sees product excitement in passenger vehicles, but it remains muted in commercial vehicles.
Telecom major Bharti Airtel on Thursday said it will acquire 4G business of Tikona Networks, including broadband spectrum and 350 sites across 5 circles, for about Rs 1,600 crore. Morgan Stanley pegs the acquisition to be in line with its expectations. It believes the buyout poses an upside to the capital expenditure.
Power Sector
JPMorgan has picked Power Grid as its top bet in the power sector based on high earnings visibility. This is followed by NTPC, which will see a steep uptick in project commissioning in 2017. It recommends avoiding Adani Power and downgraded Tata Power to neutral from overweight.
Infrastructure sector
Jefferies believes completion of NHAI (projects) in the nine months in FY17 has grown at an impressive 25 percent year on year. It expects FY17 highway completion to be the best ever. The research firm highlighted that six out of eight EPC players reported 15-50 percent YoY topline growth in Q3 and said that it preferred companies with robust execution capability over order book.
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