Markets have gained 6 per cent this week, as Foreign Portfolio Investors chase Indian equities after sustained selling in the last few months.

Mahindra and Mahindra

SPA Research has placed a buy call on the stock of Mahindra and Mahindra with a price target of Rs 1283.

The stock closed at Rs 1216 on the BSE.

"We expect revenue & profit to grow at a CAGR of 14.7 per cent & 17.7 per cent respectively between FY15- 17E. Inspite of the positive factors, we maintain our Hold rating on the stock as the CMP prices in most of the benefits that may accrue to M&M over the next 1 year, " says the research report.

Cipla

Sharekhan has set a price target of Rs 581 on the shares of Cipla. In fact, the brokerage firm has downgraded the stock to a hold.

"Valuing the stock at 20x its FY2017 earnings per share (EPS) of Rs 29.1, our revised price target comes to Rs 581, giving a limited upside. Thus, we have downgraded our rating to hold".

Oil India

Sharekhan has also placed a hold on the stock of Oil India. The brokerage firm has set a price target of Rs 390 on the stock.

"We have assigned a 50 per cent discount to the investment of the company in oil exploration assets considering the lower crude oil environment but we have considered other assets at par with the book value to arrive at a net value of Rs140 per share, which is 45% of the current market cap of the company. Also, at the current price, the dividend yield is around 5 per cent. Therefore, we retain our Hold recommendation on the stock".

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