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Buy, Sell, Hold: Analysts are watching these 9 stocks and 1 sector today

Zee Entertainment, ITC, BHEL and UPL, among others are being tracked by analysts today

Zee Entertainment

Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 565

The global research firm expects a subdued quarter for the company, led by the impact of goods and services tax (GST). Having said that, it expects a quick recovery in the second quarter. Further, BofA-ML also expects FMCG companies to curtail their spending on advertising and promotion in the first quarter, thus impacting the company’s revenues, which it expects to grow at 8 percent year on year in Q1.

Additionally, it expects the company to surprise on margin despite low revenue growth by controlling its expenses. It sees an earnings before interest, taxes, depreciation and amortisation (EBITDA) of 32 percent in Q1.


Brokerage: CLSA | Rating: Buy | Target: Rs 375

CLSA expects strong earnings growth for ITC along with a modest rise in capital expenditure over FY17-20. It expects the company to generate free cash flow at 14 percent CAGR over Fy17-20. The buy call for the stock is underpinned on a neutral final rate for GST, the report stated.

Brokerage: JPMorgan | Rating: Overweight | Target: Rs 350

The research firm sees free cash flows to be flat on the back of rising capex across all business divisions.

BHEL Stock trading tips

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 185

The global financial services firm forecasts a 12/50 percent revenue/net profit CAGR over FY17-20. It also cited the management’s expectation of recovery in orders in FY18 on the back of faster clearances.

Gujarat Gas

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 925

The research firm sees the recent underperformance in the stock as a chance to add position. It expects gas sales volume to pick up sharply from Q1 by 20 percent year on year to 6.4 mmscmd, along with sharp improvement in margins. The firm’s estimates are factoring in 69 percent earnings per share (EPS) CAGR over FY17-19. Further, it sees 12 new authorized areas to add over 0.6 mmscmd beyond FY20.


Brokerage: Deutsche Bank

Deutsche Bank highlighted that Brazil suspended another 37 fungicides after 63 in December. The products suspended, the firm said, include those manufactured by the company’s key competitors. It expects the suspension to support volume growth for the company in Brazil for the current fiscal.

Bank of Baroda

Brokerage: Nomura | Rating: Buy | Target: Rs 200

Nomura said that early recognition of stress and high NPA coverage imply lower profit and loss hit in FY18. The pre-provisioning operating profit (PPOP) outlook is better than its peers, the brokerage said. Unlike peers, there are positive net interest margin (NIM) catalysts in the current fiscal.

Fortis Health

Brokerage: Nomura | Rating: Reduce | Target: Rs 177

The brokerage said that its growth disappointed, while hospitals and diagnostics business performance lags peers. Further, it expects brownfield capacity additions to drive growth over three years. It is factoring in 16.3 percent CAGR over FY17-20 against 11 percent over FY14-17. Nomura also lowered sales estimates and EBITDA estimates as well. It could be an attractive acquisition target, given its pan-India presence, the report added.

UltraTech Cement

Brokerage: Citi | Rating: Buy | Target: Rs 5,000

Citi is incorporating the acquisition of JP Associates’ plants in its earnings. It lowered FY18-19 PAT by 35/12 percent on lower JP Associates’ utilization and EBITDA per tonne. It sees demand driven price rally yet to play out and said that the underperformance in the last month has provided a buying opportunity.

Axis Bank

Brokerage: JPMorgan | Rating: Overweight | Target: Rs 570

Continued underperformance presents an opportunity for long-term investors, the brokerage house said in its report. Incremental provisioning charge is minimal, it added. The bank is a preferred name within the high-NPL banks.


Brokerage: CLSA

The brokerage house said that the progress of RERA was slow and many states are still awaiting a proper regulator. In Mumbai, it said, only 13 developers have received RERA registration yet. This slow progress may lead to sales in first half of FY18 being weaker than anticipated. The gains are likely to be visible later in the second half.


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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:

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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.

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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.

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