6 Attractive Stocks That Brokerages Are Recommending To Buy

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Investment in equities is not easy as there are a lot of risks involved with it. Individuals who are looking for higher returns and ready to bear risk can opt for stock investment.
There are many recommendations and tips on stocks available in the market. One should do their own research before buying any stock.

However, these brokerage houses come up with research reports based on various fundamental aspects and suggested price targets.

Here are 6 stocks that brokerages are betting on from a long-term perspective.

Jubilant Life Sciences

ICICI Direct has placed a buy rating on the Jubilant Life Sciences stock with a target price of Rs 795 in its latest research report. 

"Jubilant Life Sciences (Jubilant), through one of its units Jubilant DraxImage, Canada, has received USFDA 505 (b)(2) approval (new drug application) for Ruby-fill (Rubidium 82). Ruby-fill is used for nuclear cardiology diagnostic positron emission tomography (PET) procedure to evaluate regional myocardial perfusion in adult patients with suspected or existing coronary artery disease. The product is expected to be launched in Q3FY17", the report said.

"Overall pharmaceutical business is expected to grow at 21% to | 2873 crore on the back of strong growth in radiopharma business followed by CMO and generic sub-segments. We expect Radio Pharma's contribution to pharma, total revenues to improve from 23%, 12% in FY16 to 29%, 19%, respectively, by FY19. Similarly, EBITDA margins may improve to 26.3% by FY19 from 22.0% FY16 given the tilt of the product mix towards margin accretive businesses", added further.


Greenply Industries

Religare has recommended a buy rating on the Greenply Industries with a target price of Rs 290 in its research report.

"Management's FY17 EBITDA margin guidance remains intact at ~10% for plywood and 28-29% for MDF. (3) Working capital for the fiscal is likely to remain stable. (4) MDF expansion in Andhra Pradesh is on track to commence production by Sep'18. Maintain BUY with an unchanged Sep'16 TP of Rs 290", the firm has said in its research report.

"GIL's management indicated that the demand for plywood and MDF has not improved much during the quarter. Management has maintained its FY17 guidance of 109-110% capacity utilisation in plywood (partly aided by the substitution of outsourcing by in-house production of Ecotec) and 106-107% utilisation for MDF" the Religare report added. 

CCL Products

Edelweiss is bullish on CCL Products and has recommended buy rating on the on the stock with a target price of Rs 295 in its latest research report.

"CCL Products India's (CCL) Q2FY17 revenue/EBITDA belied our estimates by 45%/51% on account of advanced annual maintenance shutdown (from Q3 to Q2) and longer than planned refurbishment, leading to loss of production. However, CCL expects to increase output and reduce operating cost in H2FY17 following the revamp, the Edelweiss report said.

We estimate volume CAGR of 12% over FY16-18, led by capacity expansion in India and better capacity utilisation in Vietnam (from 58% in FY16 to 85% in FY18). At CMP, the stock trades at 23.8x FY17E and 17.7x FY18E EPS, " the report said.


Sharda Cropchem

Sharda Cropchem LTD ('SCC') is a generics agrochemical company, follows a differentiated asset-light business model focusing on product registrations and outsourced manufacturing.

Motilal Oswal is bullish and has recommended buy rating on Sharda Cropchem with a target price of Rs 500.

Given SCC's unique, asset-light business model, management's focus on increasing the number of registrations, we believe management's guidance of 18% revenue growth over FY16- 18 with stable margins, is achievable, as per the report.


India Cement

ICICI Direct is bullish has recommended buy rating on the India Cement with a target price of Rs 190 in its research report.

India Cement (ICL), as one of the largest cement manufacturers in the southern region, is expected to be a key beneficiary of a demand revival in the key south regions, especially Andhra Pradesh (AP) and Telangana.

Apart from price hikes, ICL is taking steps to improve cost efficiency by increasing usage of pet coke, incurring capex to improve plant efficiency and increasing captive power consumption, which we believe will aid margin expansion.

Further, limited capacity addition in the south would help the company to improve its capacity utilisation over the longer term. The stock is trading at attractive valuation of US$80/tonne, ICICI Direct said.

Indian Hume Pipe

Dynamic Levels is bullish on India Hume Pipes and has recommended buy rating on the stock  with a target price of Rs 850 in its latest research report.

"The Company has wide network of over twenty factories and over 100 projects under execution in India. As a result the company's products have found acceptance in highly competitive markets.

The company's Expertise is at work right from designing of custom made pipes to the company's total engineering packages for pipeline projects," Dynamic Levels report said.

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Story first published: Monday, October 10, 2016, 10:25 [IST]
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