3 Buy, Sell and Hold Stocks Recommended from Motilal Oswal

The leading broker, Motilal Oswal has given a recommendation of buy on a mid cap, sell on Large cap pharma, and hold on a blue chip. These companies are Bridage Enterprise, Lupin and Info edge. The recommendation is based on the estimates of the analyst coverage. Here are the details.

Stock to Buy: Bridage Enterprise, with a target price of Rs 720 per share.

Motilal Oswal analyst coverage report suggests a good surge in share price of upto 45% of this leading property developer, Brigade Enterprise. The free float market capitalisation of the company is Rs 6,271.26 crore.

According to the brokerage report, "With better-than-expected pre-sales performance and healthy launch pipeline for 4QFY23, we raise our FY23E pre-sales by 8% to Rs 38 billion. However, lower recognition in 3QFY23 leads to 5% and 8% decline in FY23E EBITDA and PAT, respectively. As the company ramps up its launches, 9msf of area is likely to be launched in the next 12 month v/s 4.5msf launched in TTM. Brigade Enterprise Limited will further enhance its focus on business development. The current valuations imply Rs 4.2 billion value to the company's residential business, which is in line with the net asset value of existing project pipeline. This indicates that the future growth potential is not priced in. We reiterate our 'BUY' rating on the stock with an unchanged target price of Rs 720, implying an upside potential of 45%"

Brigade Enterprise Limited's share market price is Rs 483.50 per share, it is down by 2.34% for the day. Within a year the stock price fell down by mere 1.19%, but in three years it has shot up by 110.35%. It's 52-week high is at Rs 585 per share and 52- week low is at Rs 385.25 per share.

Stock to Sell: Lupin, with a price target of Rs 610 per share

As per the analyst coverage report of Motilal Oswal, based on the estimates, the stock price may decline by decline by 17% of Lupin Ltd. Hence the analyst has suggested investors to sell this multinational pharma company stock.

The brokerage reports explains the reasons for downgrading the stock to sell. " Given the expensive valuation even after factoring in earnings upside from niche products, we downgrade the stock to SELL. We cut our EPS estimates for FY23/FY24/FY25 by 41%/6%/5%, factoring in; a delay in g-Spiriva approval, increased operational costs on account of field force addition, a gradual revival in the domestic formulation (DF) segment, and higher financial leverage. We value Lupin Limited at 22x 12M forward earnings to arrive at a price target of Rs 610.

The stock price of Lupin Limited plunged down by 10.28% within a year, and 2.52% in three years to Rs 685.30 per share as the current price. It's 52- week high is at Rs 805 per share and 52- week low is at Rs 583.05 per share. This multinational pharma company's free float market capitalisation is Rs 16,533.54 crore.

Stock to Hold: Info Edge, with a target price of Rs 3,800 per share

Motilal Oswal has given a neutral or hold view for Info Edge, India's premier online classifieds company. Based on the company's evaluation, the brokerage report states that the company has shown strong quarter, despite the pressure. Free float market capitalisation of this large cap internet company is Rs 26,547.34 crore.

Based on the outlook from management insights and its evaluation, the brokerage sees potential from Info Edge Ltd. "Though near-term growth in Recruitment is expected to be adversely impacted by lower IT demand, good medium-term growth in Recruitment should help the company deliver 16% revenue CAGR over FY23-25.With the management investing prudently, some of its current investments should scale up over the medium-to-long term, further contributing to the group's valuation. With margins improving, we expect scale benefits over the next few years. The current valuations fairly price in its growth outlook. We individually value Info Edge's group entities using a DCF-based valuation. Our SoTP-based TP stands at INR3,800. We reiterate our Neutral rating.

The 52-week high and 52-week low of the stock of Info Edge Ltd. is Rs 4,912.90 and Rs 3,314 per share respectively. While its current market price is Rs 3417 per share is down by 10.34% on intra-day basis. In one year, the stock price has fallen steeply by 28.35%.

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.