1. Fundamental calls: Which stocks to ‘Buy’, ‘Hold’ or ‘Sell’

Fundamental calls: Which stocks to ‘Buy’, ‘Hold’ or ‘Sell’

Benchmark indices BSE Sensex and NSE Nify were trading higher in the early trade on Thursday on account short coverings ahead of August derivatives series expiry.

By: | New Delhi | Updated: August 25, 2016 10:29 AM
Sensex, Nifty, BSE, NSE Benchmark indices BSE Sensex and NSE Nify were trading higher in the early trade on Thursday on account short coverings ahead of August derivatives series expiry.

Benchmark indices BSE Sensex and NSE Nify were trading higher in the early trade on Thursday on account short coverings ahead of August derivatives series expiry. At 10.20 am, Sensex was trading 72.68 points up at 28132.62, while Nifty was up 26.95 points at 8677.25. Meanwhile, we got some fundamental calls from various brokerage houses suggesting what you could ‘Buy’, ‘Hold’ or ‘Sell’ in the present market scenario.

Aurobindo Pharma
Buy call by Sharekhan
Sharekhan sees consistent strong traction in Aurobindo Pharma’s US base business and better profitability on account of niche product launches in the future. Consequently, the brokerage house has raised the target price of Aurobindo Pharma shares to Rs 945.

Allcargo Logistics
Buy call by Motilal Oswal
Allcargo Logistics with current businesses largely in steady state and minimal capex requirement and strong balance sheet and around 9 per cent free cash flow yield. The company is well placed to invest in DFC/GST led opportunities. Motial Oswal is bullish on Allcargo Logistics with price target of Rs 229.

HCL Technologies
Sell Rating by Nirmal Bang Institutional Research
HCL Technologies’, at its analyst meet held on August 24, 2016 (after a gap of seven years), showcased its future strategies and service-line capabilities. Surprisingly, the presentations were largely horizontal capabilities focused with some commentary thrown in on verticals. There was no change in its FY17 guidance (12%-14% CC revenue growth and 19.5%-20.5% EBIT margin) and the commentary did not indicate any additional alarm on demand post Brexit.

Nestle India
Sell Rating by Nirmal Bang Institutional Research
The company is back on track, but at a slower pace. Nestle India’s pre-Maggi noodle fiasco market share was 78 per cent with total reach of 3.8 mn outlets which is now at 57 per cent (June 2016) and the pace of regaining market share was speedy in first five months – from November 2015 to March 2016 – and noticing this pace the brokerage house had expected Nestle India to regain its lost market share of 55 per cent by April 2016 and 66 per cent with 3mn outlet reach by June 2016.

Britannia Industries
Hold by Religare Securities
With the Britannia Industries consistent delivery in terms of premiumisation, cost containment and innovation, the brokerage house is enthused by CEO Varun Berry’s long-term agenda to transform the company into a 100 per cent foods player. However, valuations at 37x FY18E EPS seem fair and adequately bake in the inherent strength of Britannia’s franchise. Religare Securities maintained ‘Hold’ on Britannia Industries shares with September 2017 target price of Rs 3,100.

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