JPMorgan on Cyient*
Overweight Call, Target Rs 2,100
Divesting Stake In Cyient DLM; Proceeds To Be Used For M&A & Debt Repayment
Co Intends To Utilise For Investments In The Semiconductor Business
Co’s DET Biz Has $47 m Debt As Of Jun’24, We Believe It Can Be Partly Repaid Using Sale Proceeds
Vertical Where We Believe There Could Be Potential M&A Is Auto
*UBS on Avenue Supermart*
Buy Call, Target Rs 6,000
Channel Checks Indicate Strong Demand
DMart Store Visits Indicate Strong Footfall And Sales Growth
Minimax Is A Smaller Format With Focus On Grocery
*BofA Sec on Varun Bev*
Buy Call, Target Rs 1,840
Business Fundamentals Remain Strong
Believe Pullback After Results Is An Enhanced Buying Opportunity
Business Momentum Is Healthy
See Upside From Distribution Expansion, New Products (Dairy Beverages, Energy/Sports Drinks)
New Territories Like South Africa, Congo Can Also Be Seen As An Upside For The Co
*CLSA on Global Telecom Outlook*
Downgrade Tech Mah To Hold, Target Rs 1,670
Downgrade Tech Mah On Back Of Strong Rally & Stretched Valuations
Global Telecom Capex Outlook Remains Weak But Deal Wins Are Still High
Enterprise 5G Commercialisation Is Still Sometime Away Due To Lack Of Use Cases
Tech Mah May Face Multiple Near-term Challenges, Particularly In Its Telecom Vertical
There Is No Announcement Of Any Large Cost Optimisation Deals From Tech Mah
Multiple Deals Announced By TCS, Infosys & Wipro
*Bernstein on Auto Sector*
PV Volumes Have Grown At A CAGR Of Only 4% From FY19-24 Vs 8-9% In The Past
PV Volumes Are Not Yet In A Frothy Phase Or Have Seen An Absolute Peak
Without An Entry-Level Recovery, Believe Volumes Will Be In The Low-single Digits
Volumes Will Expand To High-single Digits By FY25/26 As Macro Continues To Stay Healthy
Still Prefer Maruti Over M&M As It Faces Low Expectations
Maruti Stacks Up Well On Inventory And The Room For Affordable Vehicle Recovery
*Bernstein on Life Insurance*
Outperform Call On SBI Life, Max Fin & HDFC Life
Underperform Call On ICICI Prudential Life
Market Perform Call On LIC
Private Life Insurers In India Present A Good Way To Get Exposure To High-income Households
Private Life Insurers Have Stable Growth Runway, Healthy Compounding & Modest Valuation Ask
Think Indian Life Insurers Deserve More Attention From Investors
*JPM on Cyient*
OW, TP Rs 2100
Divesting stake in Cyient DLM; proceeds to be used for M&A and debt repayment
Co intends to utilize for investments in the semiconductor business, organic growth and inorganic M&A, as well as to retire debt.
Cyient’s DET business has $47m of debt as of Jun’24, which believe could be partly repaid using while remaining amount could be used for M&A
Apart from semiconductor biz, other vertical where there could be potential M&A is Auto
*GS on SJVN*
Sell, TP Rs 85
CO also announced that 1320MW Buxar thermal power plant has been delayed further with Unit 1 expected to be commissioned by end-FY25 & Unit 2 in FY26
Arun-3 commissioning timelines maintained
At 3.2x P/BV H1FY27E risk-reward unfavorable
