Gujarat Ambuja Cement
Recommendation: Rs 166
Refco Securities
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Refco Securities has given a hold recommendation on Gujarat Ambuja Cement at Rs 166. Going forward, the pressure on margins is expected to continue due to the weakness in cement prices. The stock is trading at a premium to adjusted EV/tonne based valuations of Rs 157 per share.
But the brokerage house is bullish on the company's prospects in the long term. The management's focus on cost reduction and aggressive marketing strategy will eventually lead to improvement in margins and market share.
Balaji Telefilms
Recommendation: market performer at Rs 101
Kotak Securities
Given the declining trend in Balaji Telefilms share in the top 25 and top 50 programs on general entertainment channels in the past few weeks, Kotak Securities has downgraded the scrip from market outperformer to market performer rating at Rs 101.
Although there is no threat to Balaji's pre-eminent position, the falling market share indicates a near-term flattening of revenues and earnings. The company's earnings are estimated to grow by 95 per cent in FY03 (Rs 11.2). But the earnings growth is expected to remain flat beyond FY03.
Cipla
Recommendation: add at Rs 976
Inquire India Research
In an update, Inquire India Research has downgraded Cipla from buy to add recommendation at Rs 976. The US district judge decision to upheld the remaining patents for Prilosec by AstraZeneca will have a significant bearing on Cipla's medium-term performance, both earnings as well as stock price.
In the past also, pharma stock has shown a tendency to reacted sharply to news items. Although the long-term outlook on the stock remains positive, the brokerage house believes there could be a 10 per cent near-term downside from the current levels.
Two-wheeler sector
Recommendation: neutral
Sushil Finance
Expecting cut-throat competition and decelerating growth in volume offtake to adversely impact the high premium currently enjoyed by the two wheeler companies, Sushil Finance has downgraded its ratings on Hero Honda from strong buy to sell and Bajaj Auto from strong buy to accumulate.
Though the brokerage house has retained its accumulate rating on TVS Motors, the target price has been reduced Rs 450 from Rs 560 given earlier. The brokerage house believes that price is becoming a key factor influencing the consumers buying decision which will eventually lead to commoditisation of the fast growing motorcycle segment.
Hughes Software
Recommendation: market
performer at Rs 145
Kotak Securities
In an result update, Kotak Securities has re-iterated its market performer rating on Hughes Software Systems at Rs 145. The results were in line with the expectations but the decision to move beyond communications industry domain is likely to dilute the company's strong domain focused positioning.
The company also indicated that the growth will be largely driven by non-HNS business and HNS revenue growth will remain muted over the next few quarters.