6 Stocks That Brokerages Are Recommending Investors To Buy

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Stocks have corrected a tad bit this week, particularly, stocks that have reported poor quarterly results. Most analyst feel that at the current prices, the indices might be fairly valued, though selective stocks are a good pick.

Here are 7 Stocks That Brokerages are recommending investors to buy.


Punjab National Bank reported a poor set of quarterly numbers. However, brokerage firm Edelweiss has recommended buying the stock, because of cheap valuations.

"Considering valuations of 0.5x FY18E book after factoring in potential stress, focus on granularity & healthy liability franchise (CASA > 40%), we maintain ‘BUY'.

The stock of PNB closed at Rs 73 on the National Stock Exchange.

TD Power Systems

Brokerage firm Emkay has recommended buying the shares of TD Power Systems.

"Order backlog in the product segment stands at Rs 2.9 bn. Management has indicated of newer opportunities in the railways segment which are likely to be announced in the near future.

The company continues to remain zero debt and carries cash balance of ~Rs2bn in its standalone entity. At current levels, the stock trades at 16.5X FY18 EPS. We maintain Buy with price target of Rs 345/share."

Cosmo Films

Dynamic Levels is bullish on Cosmo Films and has set a target of Rs 450 on the stock.

"We initiate coverage on Cosmo Films Ltd as a BUY @320-340 with a target of Rs 450 representing a potential upside of 30% from the buy price. COSMO FILMS is trading at a low PE of 8.9.

The brokerage firm believes that capacity expansion will lead to growth in volume, a diversified product portfolio will reduce risk and improving EBITDA and profitability margins.


RPP Infra

Medici Firma has recommended buying the stock of RPP infra.

"RPP Infra has seen steady growth across its execution trajectory over the past few quarters. The company is relying on its core strength of executing projects at a fast pace on EPC basis in order to manage large book at relatively less amount of liquidity.

The model has helped the company to maintain strong margins. In FY16, RPP Infra is expected to expand its topline by approximately 20%-22% with 50 basis to 75 basis points dent in operating margins on lower execution in the last two quarters. However, the trend is expected to improve over the next few quarter with higher margins in FY17," the firm has stated in its research report.


Exide Industries

Brokerage firm Edelweiss has suggested buying the stock of Exide Industries.

"Exide, being a leading player in batteries in India, is well poised to benefit from uptick in OEM cycle and margin improvement driven by cost-cutting initiatives. Hence, we maintain ‘BUY' with a SOTP-based TP of INR177, valuing standalone at 18x FY18E EPS The stock is trading at 18.6x FY17E and 16.5x FY18E EPS."

KEC International

Geojit has set a price target of Rs 152 on the Exide stock.

"We believe the healthy orders & improvement in SAE business will leverage the margins and earnings growth.

We improve our FY17E and FY18E EBITDA margin estimates by 40 bps & 20bps respectively. We factor 10% & 36% CAGR on sales & adj. PAT over FY 16-18E and value KEC at 11xP/E on FY18E earnings and recommend a buy with a target price of Rs152

Read more about: brokerages
Story first published: Friday, May 20, 2016, 8:36 [IST]
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