These stocks have the potential to generate decent returns for investors. We have picked these stocks straight from the top research reports of the leading brokerage houses in the country. Here are 7 such stocks.
State Bank of India
Brokerage firm, K R Choksey has set a price target of Rs 302 on the stock of State Bank of India.
"Strengthening of operating metrics backed by rich franchise, improvement in granular asset quality and staunch capital sufficiency coupled with the recent price run-up, we tweak the valuation multiple higher to 2.0x P/ABV FY18E for the standalone entity and value subsidiaries at INR 47 per share, with a revised SoTP price at INR 302.
Maintain BUY recommendation on the stock. At CMP, the stock is trading at 1.7x P/ABV FY18E," the firm has said.
SBI shares were last trading at Rs 246.
Axis Capital has placed a buy call on newspaper to digital media to radio player, Jagaran Pakashan.
"Given strong presence across Hindi heartlands, we expect JAGP to be key beneficiary of revival in ad spends due to macro recovery.
Healthy expansion in Radio business (higher volume from new stations and better yields from existing channels) to further boost medium-term growth. Maintain BUY with TP of Rs 215 (16x FY18E EPS of Rs 13.5)," the firm has said in its research report.
Jagran shares closed at Rs 189 on NSE.
East India Securities has placed a buy call on the shares of Talbros Automotive.
The company has finally seen a turnaround with first double digit sales growth in nearly six quarters.
Its core gasket business commands 38% of the gasket market in India.
"Talbros Automotive has been continuously diversifying its product portfolio by new product launches and increasing client footprint.
The positive impact of new orders from various OEMs, expectation of good monsoon, expected boost in demand due to 7th pay commission and GST implication, are expected to drive strong performance in FY17 and FY18, with improving EBITDA margin. Based on these factors, we maintain our DCF based target price of Rs 171 per share (9.5x FY18E EPS).
The stock offers a 49% upside from current level. Thus, we maintain our Buy rating," the firm has said in its research report. Talbros shares are trading at Rs 124 on the NSE.
Dynamic Levels is bullish on Apar Industries and has set a target of Rs 630 on the stock. The firm believes that "UDAY"- the Government's flagship initiative
will be a game changer for Power sector Companies.
The company accounts for about 50% of the Indian transformer oils market and about 22% of its aluminium conductor market. Largest aluminium conductor exporter from India.
The shares of Apar Industries last closed at Rs 544.
Karvy has placed a buy rating on Motherson Sumi with a price target of Rs 381 n the stock.
"With improving revenue visibility, we marginally increase our valuation P/E multiple from 24x to 25x. Accordingly, we increase our target price by 15% to Rs 381, valuing the stock at 25xFY18E EPS.
In view of strong business profile, strong order book and better revenue visibility to achieve 2020 target, we maintain our positive view on MSSL and reiterate our BUY recommendation on the stock," the firm has said in its research report.
Shares of Motherson were last trading at Rs 334.
Bank of Baroda
K R Choksey is bullish on the stock of Bank Baroda and has placed a buy call with a target of Rs 173.
Given the rich liability franchise, strong liquidity management, capital sufficiency and higher PCR levels, we maintain a positive long term outlook on BoB, the firm has said.
"That said, the stock can be bought at lower levels, given that the bank stands as one of the better retail franchise better placed in the PSU space. We, therefore, maintain our target price at INR 173 valuing the bank at 1.47x P/ABV FY18E. At CMP, the stock trades at 1.2x P/ABV FY18E," the firm has said in its research report.
Bank of Baroda shares were trading at Rs 151 on the NSE.
Mahindra and Mahindra
Axis Direct has placed a hold call on Mahindra and Mahindra in its recent research report.
"After two bad monsoons, a good one this year can aid a sharp recovery in rural demand. In our view, M&M's new compact Uvs are not its best attempt, but outlook for its rural-facing businesses (tractors & majority of its UVs) could turn favorable.
Our earnings estimate is largely unchanged, however we downgrade the stock to HOLD with SoTP-based TP of Rs 1,482 on limited upside," the firm has said in its research report.
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