Stocks To Sell: HDFC Securities Recommends Sell Call To 3 Mid Cap Stocks

Leading brokerage firm HDFC Securities has assigned sell call to 3 mid cap stocks. These stocks are Radico Khaitan Ltd, Heidelberg Cement India Ltd, and TCNS Clothing. Check details below:

1. Sell Radico Khaitan Ltd

The last trading price of Radico Khaitan is Rs 1123.05 apiece with an intraday gain of 1.91%. The mid cap stock, operating in Beverages - Alcoholic sector, has a market capitalisation of Rs 15,012.23 crore.

It has given a return of 17% in last 3-months, 18% in last 6-months, and 15% in last 1-year. In last 1-year, the stock rallied 172%. HDFC Securities has assigned sell call with a target price of RS 900 apiece.

According to HDFC Securities, "Radico delivered a miss on both revenue and EBITDA despite a beat in P&A revenue. On account of consistent miss in margin and weak show for the regular portfolio, we cut our EPS by ~7% for FY23/FY24/FY25. We value Radico at 28x P/E on Dec-24 EPS to arrive at a TP of INR 900. Maintain REDUCE."

2. Sell Heidelberg Cement India

HDFC Securities has assigned sell call to Heidelberg Cement India with a target price of Rs 160 per share. The last trading price of Heidelberg Cement India is Rs 170.80 apiece with intraday gain of 1.70%.

The company has a market capitalisation of Rs 3,870.55 crore. The mid cap Cement sector stock declined 15% in last 3-months, gave negative return of 14% in last 1-year, and 13% in last 3-years.

According to HDFC Securities, "We maintain our REDUCE rating on Heidelberg Cement (HEIM), with a lower target price of INR 160/share (7x Mar-25E EBITDA)."

3. Sell TCNS Clothing

HDFC Securities assigned sell call to TCNS Clothing with a target price of Rs 440 per share. The last trading price of the stock is Rs 500.15 apiece with intraday gain of 12.98%.

The company has a market capitalisation of Rs 3,086.83 crore. The stock gave negative return of 26% in last 1-year and 15% in last 3-months. The mid cap stock operates in Apparels sector.

According to HDFC Securities, "We've cut our FY24/25 EBITDA estimates by 11/7% to account for lower underlying earnings power vs pre-pandemic times and maintain our REDUCE rating with a revised DCF-based TP of INR440/sh (earlier: INR500/sh), implying 18x Dec-24 EV/EBITDA."

Disclaimer

The stocks have been picked from the brokerage report of 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.