SBI Life Insurance

Prabhudas Lilladher has placed a buy call on the stock of SBI Life Insurance. "Overall operating metrics have been improving while growth remains better in industry, while margins have an upward bias of 100 basis points improvement each year. Retain BUY with a revised target price of Rs 991 (from Rs 906) based on Sep-21 2.9x P/EV (rolled over from Mar-21)," the firm has stated in its report.

IndusInd Bank

ICICI Direct has placed a buy call on the stock of IndusInd Bank, with a price target of Rs 1,400.

There is comfort of exposure to stressed accounts (media, diversified and housing finance) being contained around 2 per cent of loan book (Rs 4000 crore).

"Hence, we believe even a knock off of the same from ABV could lead to a reduction of Rs 50 in ABV from estimated Rs 612 on FY21E basis. Consequently, the stress case valuation indicates risk reward turning favourable with downside risk remaining limited. Therefore, we upgrade the stock from HOLD to BUY with a target price of Rs 1400 (earlier Rs 1605) valuing the stock at 2.3x FY21E ABV. Leadership succession is on the cards. Top internal candidate being considered should address investor concerns," ICICI Direct has stated in its research report.

Infosys

Sharekhan has placed a buy call on the stock of Infosys with a price target of Rs 880.

Infosys delivered a mixed bag results during Q2FY2020, with revenues a tad below our estimates while margins remained ahead of our estimates. Constant currency (CC) revenue grew by 3.3 per cent, quarter on quarter, 11.4% y-o-y (fourth consecutive quarter of double-digit growth), driven by strong growth in financial services, energy & utilities, manufacturing, communication and life-science.

At the CMP, the stock is trading at 21x/19x of its FY2020E/ FY2021E earnings estimates, which is currently at a 9% discount to TCS. As Infosys is delivering strong performance on both revenue and margin front, we believe the discount to TCS would further narrow down going ahead. Hence, we maintain our Buy rating on the stock with an unchanged price target of Rs. 880.

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