5 Stocks To Sell: Stocks That Get Sell Call As Recommended By Top Brokerages

Leading brokerages ICICI Securities, Motilal Oswal, and HDFC Securities have recommended 5 stocks to sell. These stocks are JSW Steel Ltd, Aavas Financiers Ltd, United Breweries Ltd, Ambuja Cements Ltd, and Mastek Ltd. Check key takeaways below:

1. JSW Steel Ltd

ICICI Securities has suggested investors to sell the stock of JSW Steel Ltd with a target price of Rs 475 apiece. JSW Steel's (JSTL) Q2FY23 EBITDA missed consensus estimates by 62%.

According to ICICI Securities, "We see stock underperforming the peers: We re-initiate coverage on JSTL valuing it on 5.7x FY24E EBITDA with a target price of Rs475. A key risk to our thesis is potential benefit from higher spreads if there is an uptick in domestic/international steel prices."

The current market price of JSW Steel is Rs 644 apiece with 52-week high at Rs 789 and 52-week low at Rs 789 apiece, respectively. The company has a market capitalisation of Rs 1,55,765.69 crore.

2. Aavas Financiers Ltd

Leading brokerage Motilal Oswal has given sell call to Aavas Financiers Ltd to sell the stock with a target price of Rs 1820 apiece.

According to Motilal Oswal, "The stock trades at 4.2x FY24E P/BV and captures its strong growth potential and superior asset quality franchise. We maintain our Sell rating with a TP of INR1,820 (based on 3.8x FY24E BVPS). Disbursements have gained steam. Given the investments being made in sourcing, distribution, and technology, it will embark on a very strong disbursement growth trajectory in FY24E. AAVAS posted a healthy RoA/RoE of 3.4%/13.4% in 2QFY23, respectively."

The current market price of Aavas Financiers is Rs 1973 apiece with a 52-week high at Rs 3336 apiece and 52-week low at Rs 1838 apiece, respectively. The company has a market capitalisation of Rs 15,593 crore.

3. United Breweries Ltd

Leading brokerage Motilal Oswal has recommended the stock to sell with a target price of Rs 1400 apiece.

According to the analyst, "The stock is expensive at 49.x FY24E EPS and ~30x FY24E EV/EBITDA. We reiterate our Sell rating on the stock with a TP of INR1,400 (25x Sep'24E EV/EBITDA). Results were in-line with our estimates and there has been no material change in the EBITDA forecasts for FY23. However, lower depreciation and higher 'other income' have boosted FY23 EPS by ~7% for the year. In FY24, we are expecting a gradual improvement in gross margin, owing to a new barley crop toward the end of FY23."

The current market price of United Breweries is Rs 1616 apiece with 52-week high at Rs 1793 apiece and 52-week low at Rs 1274 apiece, respectively. The company has a market capitalisation of Rs 42,745.06 crore.

4. Ambuja Cements Ltd

HDFC Securities has maintained sell rating on Ambuja Cements Ltd with a target price of Rs 480 apiece.

According to HDFC Securities, "We maintain our REDUCE rating on Ambuja Cements (ACEM), with a lower TP of INR 480/share (SOTP based), owing to its expensive valuation. ACEM reported poor performance, as unitary EBITDA slumped 60/51% YoY/QoQ to INR 452 per MT due to a sharp spike in energy cost (up ~INR 320/860 per MT QoQ/YoY) and high other expenses. At the consolidated level, ACEM has an ambitious plan to double its capacity to 140mn MT in the next five years."

The current market price of Ambuja is Rs 513 apiece with 52-week high at Rs 585 apiece and 52-week low at Rs 274 apiece, respectively. The company has a market capitalisation of Rs 1,01,863.60 crore.

5. Mastek Ltd

HDFC Securities has maintained sell rating on Mastek Ltd with a target price of Rs 1770 apiece.

According to HDFC Securities, "Mastek reported better-than-expected revenue growth of 6.1% QoQ (+10.7% QoQ CC), led by two months of integration of MST (~3.9% QoQ organic), but the margin drag continued. The EBITDA margin contracted ~200bps due to wage increase, cross-currency impact, higher subcon expenses, and supply-side concerns. We cut our FY24E EPS by ~4% and maintain our REDUCE rating, considering a slowdown in organic growth and margin pressure. Our TP of INR1,770 is based on 15x June-24E EPS."

The current market price of Mastek Ltd is Rs 1737 apiece with 52-week high at Rs 3410 and 52-week low at Rs 1612 apiece, respectively. The company has a market capitalisation of Rs 5,225.20 crore.

Disclaimer

The stock has been picked from the brokerage reports of ICICI Securities, Motilal Oswal, and HDFC Securities. Greynium Information Technologies, 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 check with certified experts before taking any investment decision.