Even as the markets have closed at their all time peak levels, analysts feel that there is some more steam left for the Sensex and the Nifty to grind higher. Here are 5 stocks that brokerages are betting on from a medium to long term perspective.
J K Tyres
ICICI Direct is bullish on J K Tyres and has set a price target of Rs 285 on the stock. "With net debt levels appearing to have hit a peak and likely to ease downwards, we believe the major market concern is likely to be alleviated. Improvement in return ratios is also a major positive. Hence, we do not believe the lowly valuations are justified. We recommend BUY with a target price of Rs 285," the research firm has stated.
Prabhudas Lilladher is bullish on Aurobindo Pharma and has set a price target of Rs 749 on the stock.
"The stock with an ROE and ROCE of 43.3% and 21.4 in FY14 and expected ROE and ROCE of 41.0% and 24.3% in FY15 is one of the cheapest stocks in the health care universe. We continue to maintain a ‘Buy' and raise the TP to Rs 749", says Prabhudas Lilladher research report.
Angel Broking has a buy call on Dishman Pharma with a price target of Rs 123. "At current levels, Dishman is trading at 4.7x and 4.0x FY2015E and FY2016E earnings, respectively. Hence, we maintain a buy on the stock with a price target of Rs 123," the firm has stated.
Strong order book to help growth
Maximus Securities has a buy call on KEC International. The brokerage firm has set a price target of Rs 160 on the stock. "Considering KEC International's strong order book, revenue visibility, improving margins, and formation of a stable government at the centre, we come up with a buy recommendation on KEC with a target price of Rs 160 per share which is 13.77x its FY16E," the firm has said in its research report.
Emkay puts a buy call on KEC
Emkay Global has set a price target of Rs 150 on KSK Energy. "Maintain Buy, as we remain positive from 1-1.5 years view and expect Mahanadi to earn reasonable RoE. However, pain in the stock might remain and it may see lower levels till Mahandai is fully commissioned," a Emkay Global report states.