5 stocks that brokers and research houses are bullish on

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, April 27, 2013, 10:44 [IST]

Next week markets are likely to be volatile as results keep trickling in. A few heavyweights are likely to announce their results next week. Here are a few stock ideas from leading brokerage houses and research firms, keeping in mind fundamentals.

Rallis India

Prabhudas Lilladher recommends buying the Rallis India stock with a price target of Rs 140 in its April 26, research report. The firm values the Rallis stock at 18x FY14E earnings, resulting in target price of Rs 140. Rallis was last trading at Rs 120 on the Bombay Stock Exchange.

HeroMotor Corp

Dolat Capital is bullish on Hero Motocorp and has recommended a buy rating on the stock with a target price of Rs 1800 in its April 26, 2013 research report. The firm notes that the recent under performance makes it the best bet in the two wheeler segment. Hero Motor Corp was last trading at Rs 1596.

Cairn India

Ventura Securities has recommended buying the Cairn India stock. "At the current market price of Rs. 289 the stock is trading at 5.4x and 5.7x its estimated earnings for FY14E and FY15E and we recommend a BUY on the stock," the firm has stated.

MRF

Microsec is betting on MRF to do well and has recommended buy rating with a target of Rs 15,810. "At the current market price of Rs 13,828, the stock is trading at a P/E of 7.8x its FY13E EPS of INR1773 and 7.4x its FY14E EPS of INR1860. The company has sound business model and ROE of 22.5 percent. We assign a P/E multiple of 8.5x to its FY14E EPS to arrive at a Target price of INR15810 for a time period of 12-15 months," says Microsec research report.

Mphasis

Prabhudas Lilladher has put an accumulate rating Mphasis with a target of Rs 420 on the stock. "According to the management, organic revenue is likely to decline by 2-3 percent QoQ due to a decline in both HP and Direct Channel, with EBIT margin at 15-16 percent. However, including DR, revenue will grow by 11-12 percent QoQ, with operating margin of 14-15 percent. However, due to cash outflow for acquisition and dividend and a higher tax rate, EPS is likely to be muted on QoQ basis. The business seems likely to be troughed out in H1FY13. We expect momentum to get better in H2FY13. We retain our ‘Accumulate' rating, with target price of Rs420, 10x FY14 earnings estimate," says Prabhudas Lilladher research report.

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