HDFC

Brokerage: JPMorgan | Rating: Overweight | Target: Hiked to Rs 1,975

The global research firm expects steady earnings growth and minimal asset quality risk. Further, it also expects earnings per share (EPS) to growh at 15 percenr CAGR over 3 years. It values HDFC Life At Rs 55,000 crore, implying price/embedded value of 4.4x (FY17). It views HDFC as a defensive stock.

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Glenmark

Brokerage: Nomura | Rating: Buy | Target: Hiked to Rs 880

The global broking firm sees a potential upside of 45 percent in the stock and believe that US launches and out-licensing deals will positively impact earnings. Further, it said that approval of four key drugs will add USD 50 million with EPS impact of Rs 9 per share in FY19. It also said that the out-licensing will generate upfront payments of more than USD 100 million.

Somany Ceramic

Brokerage: IIFL Sec| Target: Rs 967

The brokerage house has initiated coverage on the stock with a potential upside of 20 percent. it expects revenue growth to bounce back to 18 percent in FY19 and sees acceleration in tile segment & ramp-up of brownfield capacity. it also expects consistent strong performance, healthy balance sheet and low leverage.

Pharma

Brokerage: Goldman Sachs

The global investment bank observed that the sector continues to underperform and new launches are the key to this. Further, it said that the stock is still not pricing in a bear or stress case. It likes Aurobindo due to continued momentum in product launches and valuations. Meanwhile, it has a sell on Cipla as it does not see disproportionate growth from the US.

Media

Brokerage: IIFL

IIFL said that digitization will help Zee and Sun. Further, it expects EPS to grow at CAGR of 23/16 percent for Zee/Sun over FY17-20. It sees Zee’s total revenue to grow 6%/17%/14% for FY18/19/20, while Sun’s total revenue could grow 9%/21%/16% for FY18/19/20. Having said that, Dish TV could face a bigger threat from 4G/FTTH and feels there is a need to reinvent.