Markets have corrected a little after the recent spike in crude prices and now await the government's Union Budget. Here are 5 stocks that the brokers are recommending to buy.
Likelihood of earnings improving.
Brokerage firm Kotak Securities has recommended buying DB Corp, after meeting with the company's management. The management is confident on a double digit revenue growth in FY15. The brokerage firm has increased its estimates by 3 per cent as well as price target to Rs 337 (15x FY16E PER) expecting earnings beat in the upcoming quarters coupled with improving developing conditions.
Brokerage firm Sunidhi Securities is upbeat on DCM Shriram Ind. At the current market price of Rs 106, the share is trading at a P/E of 5.8x on FY14A and 3.8x on FY15E. "We recommend BUY with a target price of Rs.154 in the medium term at which the share will trade at a P/E of 5.5x on FY15E," the firm has said in its research report.
Target price of Rs.700.
ICICI direct.com has recommended the stock as the company is venturing into new opportunities for growth and spending much on promoting new brands. The firm has said, "We reiterate our BUY rating with a revised target price of Rs.700 (based on 6.0x FY16E EPS of Rs.118.3)." However, the firm has cautioned against low liquidity.
Cost control and technological upgradation.
Firstcall Research has a buy rating on Exide Industries with a target price of Rs.162 for medium to long term investment. "The Company's cost control and technological up gradation initiatives are progressing well. This will enable the company to succeed in its marketing efforts in a highly competitive market in the future," says Firstcall Research report.
Increase in CAGR.
According to the brokerage firm ICICI direct.com, Greaves Cotton has a buy rating. The firm expects revenues to increase at a CAGR of 8% and RoEs to go up by 20% by FY16E. The firm stated, "We roll our valuations on FY16E EPS and increase target multiple from 12x to 16x to factor in gains from operating leverage, pick up in auto volumes and marginal recovery in infrastructure segment. We revise our target price to Rs.128."