Institutional Activity

SG Asia Pacific Equity Research has upgraded Hindustan lever (HLL) from Hold to a buy recommendation at Rs 206 with a price target of Rs 250. Though sales still remain slack, the worst seems to be over. Good monsoons and new brand-building initiatives is expected to boost the sales in the future. The earnings per share is estimated to grow by over 20 per cent to Rs 7.2 in the current fiscal.

Jardine Fleming India Securities has upgraded Mahanagar Telephone Nigam (MTNL) to a buy from market performer rating at Rs 107 with a price target of Rs 125. Some of the private operators, and competitors of MTNL, might have to delay their fund-raising plans in light of current market conditions. While, on the other hand, there have been signs of tightening by the government to ensure that private operators adhere strictly to the Universal Service Obligations (USOs).

Indosuez W.I Carr Securities has reiterated a sell recommendation on Smithkline Beecham Consumer Healthcare (SBCH) at Rs 434 with a price target of Rs 380. With the macro environment still tough and growth slowing down in malted foods, SBCH is facing pressure on revenues and might not be able to sustain strong first half growth in the second half of this fiscal. The increase in ad spend and higher financial cost will keep the earnings growth to about 15 per cent in the current quarter.

Merrill Lynch has reiterated a buy recommendation on Ranbaxy Laboratories at Rs 654. The 12-month price target has been revised to Rs 1,000 from Rs 750 earlier. With niche products such as Cefuroxime Axetil and Isotretinoin included the current product portfolio, the US generic business is likely to provide sustainable profits to the company. According to the estimates Cefuroxime Axetil alone could provide sustainable profits of Rs 160 (US$35m) each year for the next few years.