Markets have corrected a good 6 per cent from peak levels, despite seeing some bounce back on Monday. Here are a few stocks that brokerage houses are recommending investors to buy.
Indo Count Industries
J M Financials has placed a buy rating on the stock of IndoCount Industries with a price target of Rs 140 on the stock.
"The company has completed phase-I capital expenditure to augment capacity from 68 million meters to 90 million meters. Management maintained FY 2018 volume guidance at 56 million meters. Cotton price movement and the off take in volume going forward remains the key monitorable. The Board has declared an Interim Dividend of Rs 0.4/share (20 percent payout ratio). We downward revise our FY18E/FY19E earnings in tandem with the recent performance and roll forward to FY20E to arrive at our revised fair value of INR 140/share. Maintain BUY," the firm has said in its latest research report.
Reliance Securities has placed a buy call on the stock of Ambuja Cements with a price target of Rs 310.
"Though we moderately tone down our EBITDA estimates by 6 per cent and 3 per cent for Calendar Year 2018 E and CY19E, respectively to factor in higher fuel prices and realization pressure in the quarter, we continue to believe that Ambuja Cements is on a firm footing to witness a traction, going forward on the back of likely recovery in realisation, sound demand environment and improvement in operational efficiencies.
We maintain our BUY recommendation on the stock with a revised Target Price of Rs 310," the research firm has said.
Reliance Securities is bullish on the stock of Ahluwalia Contracts and has placed a buy rating on the stock with a price target of Rs 405.
"While Ahluwalia Contracts seems to be conservative in terms of order inflow outlook owing to increased competitive intensity, we continue to maintain our positive stance on ACIL on the back of healthy balance sheet, asset light business model, and superior return ratios.
Marginally tweaking our earnings estimates for forward years and introducing our Financial Year 20 estimates, we reiterate our BUY recommendation on the stock with a revised Target Price of Rs 405 (from Rs 385 earlier)," the firm has said.
Kotak Securities has placed a buy call on the stock of Carborundum Universal with a price target of Rs 418.
"We are encouraged by the strong growth reported across key high margin products and expect earnings momentum to flow into FY 19/20. We expect turnaround across all the divisions led by global recovery for company's products.
In view of significant upside to our target price, we upgrade Carborundum Universal stock (ascribe Price to earnings ratio 22 times FY 20 estimated earnings) to BUY (SELL earlier) with revised price target of Rs 418 (Rs 408 earlier)," the firm has said in research report.
Edelweiss has placed a buy call on the shares of Sunteck Realty with a price target of Rs 508. "The company has ventured into the affordable housing segment via the Joint Development Agreement route for a project in Naigaon (10msf saleable area), in the extended Western suburbs in MMR; we believe this will broaden its growth horizon.
We incorporate this project (Rs 60 per share) in our valuation and maintain ‘BUY' with target price of Rs 508 (Rs 423 earlier) as we roll over to FY20E," the firm has said.
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