Propelled by an interest rate cut, stocks in India posted their best weekly gain in almost 2 months. Analysts are mostly bullish that there would be a further rally in stocks. Here are a few stocks that they are telling investors to buy.
DCB
Kotak Securities is bullish on DCB and has recommended buying the stock with a target price of Rs 132. The stock closed the day at Rs 119. Kotak feels that DCB continues to be a potential re-rating candidate with opex improvement on track, healthy asset quality, stabilizing credit costs and comfortable core capital (tier-I: 13.6%).
United Breweries
ICICI Direct has recommended buying United Breweries in a range of Rs 905-925 for the target price of Rs 1095 with a stop loss of Rs 820. The firm believes that in the current Nifty consolidation phase consumption stocks could rally.
Yes Bank
KR Choksey has set a price target of Rs 855 on the Yes Bank stock. At Rs 787, the stock is trading at 2.4x FY16 adjusted book and 12.7x FY16 earnings, leaving limited upside from the current level. We maintain "ACCUMULATE" rating on the stock with target price of Rs 855, potential upside 8.6%", says K R Choksey research report.
Sharekhan Bets on Thomas Cook
Sharekhan has recommended buying Thomas Cook. "We recommend a Buy rating on TCIL with a price target of Rs250 (enterprise value [EV]/EBITDA of 15x on FY2017 consolidated estimated earnings factoring fully diluted equity capital of Rs 36.45 crore)", says Sharekhan research report.
Sell target on ITC
Kotak has said to reduce holding in ITC. "The company is likely to report weak growth in the coming quarter, on the back of 6% decline in cigarette volumes. The stock currently trades at 26x PER FY16E, at a significant discount to FMCG peers (32-35x PER FY16E for domestic peers, 40- 45x PER FY16E for MNC FMCG players), given that ITC's exposure to commodity prices is lower. ITC stock remains vulnerable to further hikes in excise duties in the upcoming budget."
Buy Infosys
Angel Broking is bullish on Infosys. According to the firm the stock is trading at a discount to its peer like TCS; we believe the valuation gap can narrow down once growth picks up at Infosys.
"We maintain our Buy rating on the stock with a target price of Rs 2449", says Angel Broking research report.
M&M
ICICIdirect.com has recommended to buy M&M Financial Services in the range of Rs 325-331 for the target price of Rs 395 with a stop loss of Rs 294, in its research report dated January 05, 2015.
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