Which 7 stocks is Emkay bearish on?

Emkay Global Financial Services has come out with a report on top recommendation.

Underperformers: Asian Paints: Asian Paints trades at rich valuations of 24X FY12E earnings. The upside is capped unless rolled to FY13E earnings. Considering, risk to earnings estimates from high input cost and unfavorable base, we maintain HOLD rating with target price of Rs 2510 per share (Rating Unchanged). Bharti Airtel: At CMP of Rs.358, stock trades at EV/EBIDTA of 9.6x and 7.3x and PE of 21.8x and 16.5x for FY11E and FY12E respectively. Bharti remains our top pick in the sector, we recommend HOLD with target price Rs345. We maintain our cautious view on the sector till the clouds of regulatory uncertainties fade away. Dishman Pharma: We expect sales growth to remain subdued at 5% CAGR over FY10-12E. At CMP, the stock is trading at 11.2x FY12E EPS 9.1x FY12E EV/EBITDA. Hold the stock with a target of Rs 118. Hero Honda Motors: We have valued the stock at a target PER of 14x, which is 10% lower than that of Bajaj Auto. We believe that the difference is justified given the strong R&D, export market and margin profile of Bajaj Auto. Reduce the stock with a target of Rs 1540. Idea Cellular: At CMP of Rs68, the stock trades at 9.6x and 8.1x EV/EBIDTA and 26.9x and 28.7x EPS for FY11E and FY12E, respectively. We maintain SELL rating on the stock with target price of Rs60. Relaxation in both M&A guidelines and stringent recommendations made by TRAI in Feb, 2011, would be positive for the stock. India Cements (ICL): ICL

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