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Buy, Sell, Hold: 4 stocks and 2 sectors are on the radar of investors today

SBI, Tata Motors and KEC, among others are being tracked by analysts on Tuesday.

Petronet LNG

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 550

The global financial services firm said that Torrent Power’s tender confirms about LNG demand in India if spot prices are subdued. This was based on its tender seeking supply of 36 LNG cargoes from January next year. It expects Torrent Power to import 0.5 mmtpa LNG In FY18 & 1 mmtpa From FY19.

In the broader sense, driven by rising global supply, it expects spot LNG price to remain under USD 6/mmbtu. A recovery in industrial activity should drive the company’s volume CAGR of 10 percent over FY17-19e and it expects LNG Demand from city gas distribution, refining, power sector to drive volume growth.


Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 393

The research firm said that the bank’s capital raising exercise should help it to raise tier-1 by 70 basis points to 11 percent. Further, the capital raise should allow banks to absorb any NPLs from associate, it added. The bank’s net profit estimates were raised by 2-3 percent by BofA-ML. It expects uptick in growth and synergies in merger from FY18.


Brokerage: Nomura

The farm loan waiver decision by the government sets the wrong precedent for future servicing, it said. There’s a possibility of increase in agricultural stress, especially poll-bound states. It highlighted that PSUs and regional rural banks hold over 85 percent of agri-based debt and hence the move is a negative for banks. It highlighted that SBI was its only buy-rated PSU bank.


Brokerage: Phillip Capital | Rating: Buy | Target: Rs 295

The brokerage highlighted management expectations of a pick up in transmission and distribution (T&D) revenues in FY18. The management also sees railway revenues doubling for the second consecutive year in this fiscal, it added. The revenue visibility for the company for FY18-19 has improved significantly and the brokerage now builds 15 percent revenue CAGR in FY17-19 against 1 percent in FY15-17.

It expects the company to benefit from strong order inflows even in FY18 and sees working capital intensity to further reduce in FY18. The brokerage raised FY18/19 earnings estimates by 5‐6 percent.

Tata Motors

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 635

The broking firm said that JLR May wholesale volumes at 47,131 units was below its estimates of 49,200 units. The stock trades at 15.2x/7.1x fy18/fy19e consolidated EPS, it added.


Brokerage: Credit Suisse

The global brokerage firm expects GST-induced volatility to mask the real growth trends for three quarters. It expects distributors and retailers to down-stock before GST. Further, it observed that HUL and ITC have the leanest inventory & lower wholesale salience, while Colgate, with higher wholesale share, may see maximum down-stocking. Real demand growth will be hard to fathom for the next 3 quarters, it added.


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Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

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Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

HDFC Sec retains sell on Bharti Infratel, reduces target to Rs 310 despite 22% fall in last 2 months

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

Bharti Infratel shares declined 1.5 percent to close at Rs 368 on Tuesday after HDFC Securities has reiterated its Sell rating on the stock with revised target price at Rs 310 (from Rs 387 per share) despite sharp fall in last two months. INDIAN STOCK TIPS

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

"Target price is based on 20x Dec-19E EPS (Rs 356) for business as usual (versus 24x earlier) less impact of Rs 60 per share from Vodafone-Idea merger (versus Rs 39 per share earlier) and likely acquisition of Vodafone-Idea stake in Indus at enterprise value of Rs 50 lakh per tower (+Rs 15 per share)," the research house said.

It further said the key reason for the de-rating is instant loss of tenancies on merger of Vodafone-Idea and impact of Reliance Communications and Aircel businesses’ scaling down.

This would push back Bharti Infrat…