In case of SBI, CLSA expects a return on equity (RoE) of 15 per cent-plus going ahead. It said the prevailing valuations of SBI are undemanding, adding that SBI remains one of its top picks in the banking sector. Credit cost continues to undershoot it said, adding that the management has guided for an improvement in net interest margin (NIM). The brokerage has a target of Rs 660 on the stock.
On Eicher Motors, CLSA has a target of Rs 3,089. Eicher Motors is its top pick in the two-wheeler segment, as domestic demand for Royal Enfield is strong with improving production numbers. Pricing is strong and demand is returning, it said, adding that operating leverage will drive a margin recovery in the VECV business.
VECV or VE Commercial Vehicles is a joint venture between the Volvo Group and Eicher Motors.
Meanwhile, UBS has a target of Rs 1,260 on Tech Mahindra as while fourth quarter revenues were in line, margin missed its estimates. Lower-than-expected margin was relative to consensus estimates, it said. The brokerage expects a downward consensus earnings revisions and is expecting the stock to underperform in the near term.
