ICICI Direct is bullish on Shoppers Stop and has set a price of Rs 435 on the stock on its recent research report.
According to ICICI Direct, the management is targeting 7-8% like to like (LTL)) sales growth in FY14E and is confident of achieving the same as consumption has held up well despite the weak economic environment. The newly opened stores (eight to nine per annum) will also aid revenue growth.
"While it is business as usual for departmental stores, the losses of the HyperCity segment continue to dent the overall performance. The management aims to achieve EBITDA and PAT level break even in FY14E and FY15E, respectively. We value SSL on an SOTP basis wherein we value the HyperCity format at a 20% discount to the departmental segment's multiple (0.8x FY15E EV/sales). Bearing in mind the long term prospects, we maintain BUY with a target price of Rs 435," ICICI Direct has stated in its research report.
Broking firm Prabhudas Lilladher is bullish on IndusInd Bank and has set a price target of s 540 on the stock.
"IndusInd Bank's (IIB's) Q1FY14 performance was reassuring on operating metrics and has also addressed investor concerns on the CV book. PAT at Rs 3.35bn (+42 percent YoY) was better-than-expected with in-line NIMs and core fees driven by higher treasury income, partly also used to start a build-up of dynamic provisioning. ROEs have inched back to 17.5 percent in just two quarters of the QIP which is a positive and with IIB delivering on most operating metrics, we continue to remain positive and maintain a "BUY" recommendation. However, our PT of Rs 540 implies a modest a 10 percent upside," says Prabhudas Lilladher research report.