Global brokerage house Jefferies has upgraded Finolex Cables to buy on favourable valuation and strong balance sheet, but cut price target to Rs 500 from Rs 765 per share.
Its other top midcap picks are Supreme Industries, V-Guard Industries, and Kajaria Ceramics. It has a buy call on all these stocks but slashed targets to Rs 1,260 (from Rs 1,530), Rs 240 (from Rs 290) and Rs 530 (from Rs 775), respectively.
The reason behind the cut in price target is that earnings are expected to take a hit by lockdown due to novel coronavirus.
"We see a tepid first half of FY21 with maximum impact in Q1 due to lockdown," said Jefferies which cut FY21/22 EPS estimates by 12-20 percent.
The Nifty Midcap index and benchmark Nifty50 corrected more than 35 percent from highs seen in 2020 due to rising concerns with respect to COVID-19.
Coronavirus already infected more than 700 people in India with 13 deaths so far, while the worldwide infected cases jumped over 5 lakh mark with 24,000 deaths, reports CNBC.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.