Five stocks are there which are watched out by the brokerage firm-
Motherson Sumi maintained buy rating with the target price of Rs 356. According to UBS, it is a story of many years and 24 percent EPS CAGR is expecting over FY 16-19 period. Margin movement is sawn by the Brokerage House at Samvardhana Motherson Peguform and international business growth is expected to remain robust. A solid track record has to be with the company to generate value by moving around distressed assets. To earn shares in the US market and to grow India business faster than domestic car manufacture, Samvardhana Motherson continues reflected. EBITDA margin of Samvardhana Motherson Peguform is expexted to improve until around 200 basis points over FY16-19.
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Jammu & Kashmir Bank
Litigation was muddled the US generic pricing environment, said by the Bank of America Merrill Lynch. Price hikes may be occurred less with the greater scrutiny according to the brokerage house. EPS has been affected 1.5-4% with the increase of 1% in price erosion in US.
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The stock has been downgraded by the credit suisse to neutral from outperform and target cut from Rs 800 to Rs 620. It feels a halol resolution delay is being already factored by the stock. Credit Suisse said that the EPS cuts are being ignored by the market and the price increase drives the 20% of FY18 EPS.
Oil marketing companies
Fuel price hike should place to remaining investor concerns. Buy call has been maintained on all 3 marketing companies with BPCL like preferred pick.
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Non-discretionary nature should limit downside of fuel purchases. The 7/8/13% is to be similar for the IOC/BPCL/HPCL with the impact on EPS, stated by the brokerage house.
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