6 Hot Stocks That Brokerages Are Recommending To Buy

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Individuals who are interested in investing in the stock market should be careful when it comes to selecting stocks. Stock investment should always be considered for long term as it can give better returns.

Investment in equities attract tax if sold before one year of investment as short term capital gains tax will be applicable. There is no tax for long term capital gains.

Here are some stocks which brokerages are recommending buy:

Bharat Electronics

Motilal Oswal is recommending buy on Bharat Electronics with a target price of Rs 1450 in its latest research report on September 23, 2016.

"Post strong order inflow of INR 170b in FY16, the management has guided orders worth INR 120b-150b in FY17 (our estimate: INR 135b; five-year average: INR 79b). Key orders wins expected in FY17 include: (a) hand-held thermal imagers, (b) electronic warfare systems for the Indian Army, and (c) network-centric systems for the P15 Bravo ships. The Akash weapon systems order worth INR 50b-60b along with the LR SAM (Barrak 8) is likely to slip to FY18. Annual order inflows over the next 2-3 years are expected to remain in the range of INR 100b-150b, as there is a strong pipeline of nomination-based orders", Motilal report said.

"We expect BHE to report EPS of INR62 in FY17 and INR69 in FY18. Maintain Buy; our target price is INR1,450 (21x FY18E EPS), added further.

Prabhudas Lilladher has also recommended accumulate rating on Bharat Electronics with a target price of Rs 1500.

Shares of Bharat Electronics were seen trading at Rs 1287, higher by 0.57 per cent on BSE at 10.59 am IST. It touched an intra-day high of Rs 1295 during trade.

 

Infibeam

Infibeam is an e-commerce company, focused on developing successful ecommerce platforms and ecosystems.

KR Choksey is recommending a buy on Infibeam stock with a target price of Rs 1062 in its research latest research report.

"With an e-commerce boom running in India at full-swing, the rate at which the brick and mortar retailers are transforming to an online platform is unimaginable. India's ‘e-tail' market stood at US$ 7 Bn in 2015 and is expected to grow at a CAGR of 44% to US$ 44 Bn by 2020. As of FY15, Infibeam's potential addressable market, i.e. the organized offline retail market, stands at US$ 46 Bn (INR 3,082 Bn). This market is expected to grow at a CAGR of 26% between FY15 to FY20 to US$ 146 Bn (INR 9,782 Bn), " the research report said. 

The stock is trading at EV/Sales (x) of 8x, 5.5x and 3.7x to its FY17E, FY18E and FY19E revenues. Notably, the services segment contributes 31% to top-line, however we believe that this segment holds immense potential, the report added.

Shares of Infibean were seen trading at Rs 922, lower by 0.47 per cent on BSE at 11 am IST. It touched an intra-day high of Rs 935 and low of Rs 905 during trade.

 

Dabur India

Dabur India Ltd (Dabur), the leading Indian FMCG company, is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Geojit BNP Paribas is recommending buy rating on the stock with a target price of Rs 322.

Dabur has a wide distribution network, covering 5.3mn retail outlets, one of the highest among FMCG companies. We are factoring 130bps increase in overall EBITDA margin to 19.3% by FY18E driven by new premium offerings & prudent cost management. We initiate Dabur with a "Buy" rating valuing the stock at 35x FY18E EPS arriving at a target price (TP) of Rs322.

Currently, Dabur has 16 brands with a turnover of over Rs 1bn, and three brands with turnover of more than Rs10 billion.  
Shares of Dabur Indiawere seen trading at Rs 278, higher by 0.52 per cent on BSE at 11 am IST. It touched an intra-day high of Rs 281 and low of Rs 278 during trade.

 

Zee Entertainment

Motilal Oswal is bullish on Zee Ent and has recommended a buy rating on the stock with a target price of Rs 610.

To reverse the trend of dipping ratings, Zee TV intends to rev up its content pipeline by another 5-6 hours of original programming hours (OPH) per week in 2HFY17. It is also weeding out non-compelling content with limited viewership, the report said.

Considering the multiple growth levers (regional channels, &TV, international biz), we maintain our FY17/FY18 EPS estimates and our target price of INR610 (30x FY18E EPS plus INR18/share toward &TV DCF value less INR18/share toward preference share liability), added further.

Shares of Zee Entertainment were seen trading at Rs 552, higher by 0.80 per cent on BSE at 11 am IST. It touched an intra-day high and 52-week high of Rs 556 during trade.

 

Yes Bank

Yes Bank stock has corrected by 15% over past two weeks presumably as the bank deferred its capital raising plan.

Antique Stock Broking believe that bank is well on track to deliver industry leading growth/return ratios even as it diversifies its asset book and adds granularity to its liability franchise. We believe that at current growth momentum bank will surpass 40% CASA mix in FY19 (one year ahead of its guidance) while the normalization in savings rate and improved asset mix will enable it to improve margins to 3.75%.

Antique Stock Broking is bullish on the bank and  has recommended buy rating with a target price of Rs 1401.

Shares of Yes Bank were seen trading at Rs 1,298, higher by 2.34 per cent on BSE at 11 am IST. It touched an intra-day high of Rs1,304 during trade.

 

Take Solutions

GEPL Capital is recommending a buy rating on theTake Solutions with a target price of Rs 201.

Take Solutions Ltd. (TSL) is a Chennai based global IT solution and services provider. The company is involved in providing IT solutions to Life sciences (LS) and Supply chain management (SCM) vertical. The company has strong domain expertise in providing cost effective comprehensive solutions to the business. TSL provides LS solutions to pharmaceutical and biotechnology companies on a contract basis.
TSL has niche business segments like SCM (supply chain management) and LS (Life science). The company has deep domain expertise and robust product portfolio, the report said.

Shares of Take Solutions were seen trading at Rs 171.90, higher by 0.79 per cent on BSE at 11.07 am IST. It touched an intra-day high of 173 during trade.

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author  do not accept culpability for losses and/or damages arising based on information in this article.

 

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