Here are top five recommendations from various brokerage firms for a minimum investment period of 12 months:
Godrej Consumer Products: Buy | Target price Rs 1,600
Global brokerage firm CLSA in a note to clients downgraded Godrej Consumer to outperform from buy but raised its 12-month target price to Rs 1,600 from Rs 1,500 earlier. GCPL entered an agreement to acquire Strength of Nature LLC (SON) last week, a hair care products firm, as part of its wider strategy to boost its international business.
Yes Bank: Neutral; Target price Rs 900
Global brokerage firm Goldman Sachs downgraded Yes Bank to neutral from buy with a 12-month target price of Rs 900. It also removed the stock from its ‘Conviction List’.
However, most of the asset quality concerns are put to rest post-RBI’s review which led to no sharp NPL increase. The global investment bank likes the long-term story of Yes Bank on the back of improving retail franchise as well as diversification of loan book. It expects Yes Bank earnings profile to improve but see only 5 per cent upside. The stock is also looking weak on the technical charts.
Maruti Suzuki India: Outperform; Target price Rs 4,150
Global brokerage firm CLSA downgraded Maruti Suzuki India to outperform from buy and has also slashed its 12-month target price to Rs 4,150 from Rs 4,220 earlier. The global investment bank sees weaker passenger vehicle (PV) demand outlook for FY17 but expect Maruti to gain market share. Softer margin outlook is seen due to yen and higher steel prices.
HCL Technologies: Outperform | Target price Rs 1,150
Global brokerage firm Credit Suisse maintains an outperform rating on HCL TechnologiesBSE 0.56 % with a 12-month target of Rs 1,150. HCL Technologies’ acquisition of Mumbai-headquartered firm Geometric on Friday could lead to 30 bps margin dilution. The deal might prove to be slightly EPS dilutive, said the brokerage note.
ITC: Buy | Target price Rs 370
Global brokerage firm ITC maintains a buy rating on ITC with a 12-month target price of Rs 370. The investment bank does not expect major disruption due to pipeline inventory unless resolution takes longer.
ITC on Saturday said it has shut down its cigarette factories until “clarity emerges” on the rules on health warning”. The regulation met stiff resistance from industry, CLSA note added.