5 Stocks That Brokerages Are Betting On

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Markets have fallen around 7 per cent from peak levels. Many analysts are suggesting a buy on decline strategy to make money from stocks. Here are a few stocks that are being recommended by brokerage houses.

Escorts Ltd

Geojit has placed a buy call on Escorts Ltd with a price target of Rs 973 in its latest research report.

"Margin expansion through new launches & cost initiatives and further government support for better agricultural output is expected to be earning growth catalysts. We upgrade our profit after tax estimate for FY18/FY19 by 11 per cent and per cent respectively to factor higher operating leverage.

We believe that the current valuation is justifiable on the back of robust earnings outlook and massive government push. We value Escorts Ltd at 23 times on FY20 Estimates EPS with a revised target price of Rs.973 and maintain our rating as Accumulate," the firm has said.

Escorts last closed at Rs 912 on the Bombay Stock Exchange. Check stock quote of Escorts here

Hero Motor Corp

LKP Research has placed a buy call on Hero Motor Corp with a price target of Rs 4097 in its research report.

"On the bottomline, setting up of new plants will increase the depreciation expenses but also provide with tax benefits as Halol and AP both are tax haven plants. In line with lower than expected Q3, we have slightly reduced our FY18E/19E estimates, while have introduced FY20E numbers. Rolling over to these numbers, we maintain BUY rating on the stock with a target of Rs 4,097," the firm has said.

 

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers.

The shares of Hero Motor Corp last closed at Rs 3546 on the NSE.  Check stock quote of Hero Motor Corp here

Relaxo Footwears

Dolat Capital has placed a buy call on the stock of Relaxo Footwear with a price target of Rs 655 in its research report.

"Going ahead, we believe that the company would continue to increase its distribution reach in southern and western markets. Further, premiumization would help it to gain the margins.

In addition, with GST in place, we believe the organized sector would continue to outperform and Relaxo being a market leader in the economy category, is poised to take an advantage of the growing share.

We have increased our FY19 earnings estimate from Rs 14.6 to Rs 15.2 considering strong Q3 performance.

We are valuing Relaxo at 43x FY19E to arrive at a TP of Rs 655. Maintain Accumulate," the firm has said in its research report," the firm has said.

Relaxo last closed at Rs 610 on the NSE. Check stock quote of Relaxo here

Bajaj Auto

LKP Research has placed a buy call on the stock of Bajaj Auto with a price target of Rs 3,641.

"Bajaj Auto posted better than expected numbers at the topline as 17.6 per cent year-on-year growth in volumes and 1 per cent rise in realisations led to an 18.7 per cent growth at the top line. This was on the back of low base of last year and recovery in the exports markets," the firm said.


"We maintain buy rating on the stock with a rolled over target price of Rs 3, 641 on FY20 estimated, more or less maintaining our FY18 estimated and FY19 estimates," the firm has said. The stock of Bajaj Auto last closed at Rs 3,124 on the NSE.

Check stock quote of Bajaj Auto here

J K Lakshmi Cement

Geojit Securities has placed a buy call on the stock of J K Lakshmi Cement with a price target of Rs 447 in its research report.

The cement price cap set by the state government in Chhattisgarh (60 per cent of total sales in East) was removed and will support realisation in East in the coming quarters. Management expects the demand will be good in the coming two quarters (pre-monsoon).

"We expect demand to pick up in the coming quarters (pre-monsoon) which coupled with the ramp up in recently commissioned capacities bodes well for JKLC. The margins will have an impact due to recent surge in fuel cost. We value JKLC at EV/EBITDA of 12x on FY19E for standalone and 10x for UCWL and arrive at a target price of Rs 447 with Accumulate rating," Geojit has said.

Disclaimer

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

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