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Wipro has signed an agreement to acquire Capco, a global management and technology consultancy to the BFSI industry, for a cash consideration of $1.45bn (~2x EV/Sales on a trailing basis).

Capco acquisition reflects Wipro's aspiration and bold bet to accelerate revenue growth and augment capabilities. Most of the Consulting business acquisitions across the industry failed to deliver anticipated revenue synergies in the past. We maintain the Hold rating with a revised TP of Rs 450 at 20x FY23E earnings (earlier 18x).

Firstsource Solutions-Buy



We expect FSOL to deliver ~19 per cent earnings growth over FY20-23E. We maintain Buy with a TP of Rs 125 at 15x FY23E earnings, considering a sustainable improvement in the revenue growth trajectory with stable margins and strong cash generation.

KSB-Buy

Recommendation by Anand Rathi Share and Stock Brokers

In the next 2-5 years, vast number of opportunities are underway for KSB especially in FGD, nuclear power (NPCIL), and O&G. Export opportunities too are good, aided by a strong parent, technology and cost competitiveness.

We introduce CY22e and expect 16 per cent/23 per cent revenue/PAT growth. Our rating we upgrade to a Buy, at a target of Rs 1,008 (25x CY22e earnings).

Endurance Technologies-Buy

Recommendation by Motilal Oswal Institutional Equities

We prefer ENDU over 2W OEMs as the best way to play the 2W industry, given that the company has a strong positioning with all OEMs and is the beneficiary of the underlying trend in premiumization, scooterization, and electrification.

Maintain Buy with a TP of Rs 1,750 per share (28x Mar'23E consolidated EPS).

Gujarat State Petronet-Buy

Recommendation by Motilal Oswal Institutional Equities

Gujarat State Petroleum (GUJS) has a 54 per cent stake in Gujarat Gas (GUJGA), which amounts to a market capitalization of INR197b, much higher than GUJS' m-cap at Rs 156b.

- Major concerns for the above anomaly have been: a) expected decline in tariffs of GUJS due to over-utilization of the High Pressure grid, and b) concerns over the usage of cash.

- Gujarat State Petroleum Corporation (GSPC), the parent company of GUJS with a 37.6 per cent stake, has traditionally been a debt ridden company, raising concerns whether the cash generated by GUJS may be used to reward minority shareholders.

- We value GUJS' standalone operations at 7x to arrive at our TP of Rs 400/share (core business continues to trade for free) and reiterate Buy.

Trident-Buy

Recommendation by Motilal Oswal Institutional Equities

Work-from-home in most of the big cities across the world has contributed to demand revival in Home Textiles - with people spending more on home improvement products as the home has become their primary workplace.

We value TRID at 14x FY23E EPS to arrive at TP of Rs 19. Maintain Buy.

Camlin Fine Sciences-Buy



The Supreme Court of China has levied a penalty of RMB159.32mn (Rs 1.8bn) on Camlin Fine Science's (CFIN's) JV partner Wanglong Technology, on account of suspected infringement of intellectual property used in the process for producing Vanillin.

Moreover, CFIN has started mechanical work on convertible plant to produce Ethyl/Methyl Vanillin at Dahej, which is expected to be completed by Q4FY22. In case the company, for unknown reasons, is not able to restart the plant (Wanglong) for Vanillin production, alternative uses may be considered. Accordingly, we do not expect a significant hindrance to CFIN's overall operating performance.

Aditya Birla Fashion and Retail-Buy



We like ABFRL's increased aggression and raise estimates marginally, factoring in strong growth plans. Steady execution with strengthening balance sheet and improving ROCEs and FCF offers scope for re-rating. Maintain Buy with a revised TP of Rs 206 (from Rs 190).

Bharat Petroleum Corporation Limited-Buy



BPCL board has approved the sale of its 61.65 per cent stake in Numaligarh Refinery to a consortium of Oil India and Engineers India, and the Assam government for Rs 98.8bn.

The sale is an important milestone in BPCL's disinvestment process, and cash proceeds may also be paid to BPCL shareholders as a special dividend of Rs 40-50/sh in the next 1-2 months. Retain Buy and OW on BPCL, with a TP of Rs 495.

Tata Motors-Buy



We reaffirm Buy on TTMT with a TP of Rs 375 (Rs 355 earlier), based on an EV/EBITDA of 2x/11x on JLR/standalone estimates on FY23E and the value of other subsidiaries/investments at Rs 68/share. We have assigned a value of Rs13/share for the China JV due to the anticipated turnaround, based on an EV/EBITDA multiple of 4x, resulting in an increase in our TP. Key downside risks: Luxury car demand contraction in target markets, failure of new launches, and adverse currency/commodity prices.

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