Markets have tanked a fair bit in trade today, as the US Fed has advanced the possibility of interest rate hikes to 2023. In fact, the Fed sees at least 2 rate hikes in 2023. This has sent stocks across India into a tailspin, with the Sensex losing as much as 350 points in trade today. In the midst of this carnage, here are a few stocks that brokerage firm Emkay Global has a "buy" or "sell" or "hold" call on.
LIC Housing Finance
Emkay Global has placed a "hold" call on the stock of LIC Housing. The firm does not see an upside potential on the stock. In fact, the target price is Rs 470, which is a fall from the current market price of Rs 485.
"We have incorporated preferential allotment of 45.4 million shares to the promoter (LIC). However, we expect further need of capital considering the demand environment and elevated NPAs. Maintain Hold/EW in EAP with a revised target of Rs 470 (Rs 432 previously), corresponding to 1.2 times FY23E P/Adj. Book (1x FY23E book earlier)," the brokerage has said.
The stock of LIC Housing has seen a sharp up tick in the last few months and is closer to its 52-week highs and investors may well resort to sell on a rally.
Emkay Global is not bullish on the stock of L&T Infotech and has recommended a sell on the stock of the IT company.
"Cuelogic will be integrated with LTI's Digital practice, which is a focus area for LTI. The acquisition will augment its domain capabilities. Given the size of the acquisition (<0.5% of LTI's revenue), we do not expect any meaningful revision to our earnings forecasts. We have a Sell rating on the stock with a TP of Rs3,550 (24x FY23E EPS).
The lower target price of Rs 3,550 is significantly lower than the current price of Rs 4126 on the stock," the brokerage firm has said. The stock of L&T Infotech like those from the IT space have rallied significantly in the last few months.
Emkay Global has suggested buying the stock of KEC International with a price target of Rs 475 on the stock, as against the current market price of Rs 406. This is an upside of almost 155 from current levels.
"We marginally raise FY23/24E EPS by 3-4% on better execution guidance in the Civil business (14% of FY22E sales) and arrive at a revised price target of Rs 475 (Rs 460 earlier), based on 15 times FY23E EPS (its long-term average PE multiple). We expect FY21-FY24E EPS CAGR of 18%, led by partial margin rebound over the period," the brokerage has said.
All of the above stocks are picked from the report of Emkay Global. Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.