INSUBCONTINENT EXCLUSIVE:
Dolat Capital has slashed target prices of leading consumer durables, capital goods and logistics companies in the range of 7 per cent to 29
per cent as these sectors are facing multiple headwinds on demand, execution and pricing front in light of the spread of Covid-19 in India
The brokerage has maintained buy on Voltas, L-T and Container Corporation but trimmed target price on these stocks
For Havells, the brokerage has cut the target price and downgraded the stock as well
Dolat analysed the outlook for these stocks:
Container Corp of India
CMP: Rs 303
The firm has maintained buy rating on Container Corporation
but trimmed target price to Rs 610 from Rs 665
Container volumes of the company are likely to get hit in the first half of the ongoing financial year due to effect of the virus spread and
subsequent slowdown, said Dolat.
Larsen - Toubro
CMP: Rs 719.05
The firm has maintained buy rating and reduced target price on the capital
goods and engineering major to Rs 1,200 from Rs 1,700
Dolat expects the domestic EPC business of L-T to decline 10 per cent due to delay in getting the new orders and internationak business may
decline by 25 per cent due to current issues in export markets.
Havells India
CMP: Rs 493
The firm has downgraded the stock to reduce from
accumulate and slashed target price to Rs 540 from Rs 650
Given the already subdued demand for its base products, the global pandemic is putting fuel in the fire, as masses are preventing themselves
for doing any activities outside, said Dolat.
Voltas
CMP: Rs 13.7
On Voltas, Dolat has maintained buy rating but trimmed target price to Rs
The brokerage is seeing demand challenges in the first half of the financial year due to lower incoems and deferment of expenses
The international orders will get impacted on account of uncertainty over coronavirus issue, and the shutdown of the markets in various