Four recommendations that will help your portfolio

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

Bank of America-Merrill Lynch recommends buying Reliance , but has cut its target by 11% to Rs 909. A US recession will hit the petrochemical and refining margins, they say. Bear-case FY12-13 EPS estimates are 17-32% lower than base case. It would mean no growth.

The research house also recommends buying GVK Power , but has cut its target too to Rs 30. BoA-ML believes GVK’s proposed acquisition of 14% stake in Bangalore airport may dilute its earnings by 6-7% over the next three years.

RBS reiterates their ‘buy’ call on SBI with a target of Rs 2,852. In the long term, strong operating profit growth led by margin expansion should be reflected in a higher bottom line as the provision for bad loans comes down.

The brokerage, however, maintains a ‘sell’ call on Coal India on rich valuations, but has raised its target to Rs 345. They have raised their earnings estimates by 10% for FY12 due to robust realisations and higher e-auction volumes and prices.