Often when the markets are trading sideways or in a tight range, we look for key stocks to buy. However, it is also a good time to know the stocks that could be underperforming or the ones that need to be avoided.
Here is a list of the stocks that international brokerage house, Jefferies has rated Underperform or Hold in the last few days. Check if you have any of these counters in your portfolio-
Delhivery
Jefferies has Underperform recommendation on Delhivery with a target price of Rs 350 per share. This implies nearly 20% downside for the share price of Delhivery. They expect “insourcing by Meesho to impact near-term growth, partially offset by Ecom acquisition. Captive logistics arm’s pursuing 3PL opportunities is an emerging risk.”
They added that the “logistics costs account for 29-78% of sales for marketplaces and insourcing is therefore key for operational/cost control for the players in our view, an overhang for 3PL players.”
Indus Towers
The Indus Towers share price will be in focus as Jefferies upgraded the stock to Hold from Underperform. According to the brokerage house, “muted growth, risks on Vodafone Idea’’s rollouts and uncertainty on dividends are likely to cap upside.” However, at 6% FCF yield, “downside is likely limited as well,” they added.
Vodafone Idea has sold its 11.15% stake in Indus Towers to the merged entity after the merger of Indus Towers with Bharti Infratel. Jefferies says, “with VIL’s overdue amount being low at Rs 200 crore, the free cash flow is likely to fall in FY26. However, moderation in capex will keep FCF in the range of Rs20-24/share over FY26-FY28.” No resolution around VIL’s receivables is a big downside risk for them.
Aegis Vopak
Jefferies has initiated coverage on Aegis Vopak with a Hold rating a d target price of Rs 270 per share. This implies a 9% upside for the Aegis Vopak share price from current levels.
They believe the key downside risks for the stock are delay in the Kandla–Gorakhpur pipeline, weak LPG imports/market share gains and value-dilutive expansions.
That said, they pointed out that higher capacity utilisation and value accretive inorganic growth do offer some room for upside.
IKS (Inventurus Knowledge Solutions)
Jefferies has reiterated Hold rating on IKS on the back of rich valuations and prefers to be on the sidelines at the moment. The price target of Rs 1,630 per share indicates limited room for upside for the IKS share price. According to the brokerage house, the growth outlook is already priced in and the rich valuations cap the upside in the share price. They added that, “nearly the entire growth in Q1 was driven by top 5 clients (+63% YoY). Revenues from clients in the top 6-10 bucket grew by a meager 4% YoY and helped offset the 3% YoY decline in revenues from clients outside the top-10 list.” This is also a concern as per Jefferies.