Even as the markets hit historic highs, there are many stocks that still have some steam left. Here are a few stock ideas from leading brokerages in the country.
HDFC Securities has placed a buy call on the stock of Birla Corp. The company is engaged in the manufacture of cement, jute and steel tubes. HDFC Securities has set a price target of Rs 1,455 on the stock. "Strong reversal in demand is expected in the states impacted by sand shortage, once the issues around sand supply are resolved.
Volumes should also rebound from the seasonally weaker numbers delivered in 2Q, and we expect that
the price increases in 2HFY18 should offset the cost pressures from rising petcoke.
We have revised our FY18 estimates marginally to account for somewhat lower pricing year to date," the firm has stated. Check stock quote of Birla Corp here
Khambatta Securities has placed a strong buy on the stock of Sun Pharma with a price target of Rs 579 on the stock.
"The company expects to file NDA for Seciera; a dry eyes drug by 3Q FY18. The company has spent substantially on R&D related to development of MK-3222 (Tildrakizumab), an investigational therapeutic antibody candidate, which achieved positive results in Phase 3 trials for the treatment of chronic plaque psoriasis (a skin ailment).
Tildrakizumab NDA filing is expected to be done by Merck in FY 2018. Odomzol launch could be another big positive for the company," Khambatta Securities has stated.
Valuations for Sun Pharma
"We value the business at 25.0x (which is within Sun Pharma's 3year P/E range of 12.2x -38.3x) FY 2019E adjusted diluted EPS of Rs 23.2, arriving at a share price of Rs 579 generating 14.8% potential upside from current levels. Hence, we upgrade our rating for Sun Pharma common stock to ‘Strong Buy'.
Rama Steel Tubes
Joindre Capital Services has recommended buying the stock of Rama Steel Tubes. Rama Steel Tubes Ltd. (Rama Steel), is one of the major player in the steel pipe tubes in India.
"On a rough cut basis, in FY18, Topline is expected to touch Rs 350.20 crores. On the bottomline level we expect the company to record a PAT of Rs 15.20 crores in FY18E. Thus on a conservative basis, RSTL should record a EPS of Rs 9.55 for FY18E.
For FY19E and FY20E our expectation is that earnings traction for RSTL would continue to remain strong wherein we expect a EPS of Rs 15 and Rs 21 respectively.
Target price of Rama Tubes Ltd
Hence we believe that at the current price of Rs 181 the Rama Tubes Stock looks undervalued at a PE of 12x and 8xbased on FY19 earnings and FY20 earnings and
should be purchased at the current price for a price target of around Rs 235 over the next 12 to 15 months.
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