Why brokerages are bullish on NTPC, NMDC, Bata

Brokerages recommend trading calls on four stocks, namely NTPC, NMDC, Sail and Bata.

NTPC

Brokerage: Barclays

Rating: Overweight

Target: Rs 174

Rationale: has an on with a target of 174. They view the allotment of four coal blocks as a positive over the long-term. However, they expect mining to commence only at the end of the 13th plan period. 

Also read: 6 trading stocks for short term gain

NMDC

Brokerage: Citi

Rating: Buy

Target: Rs 120

Rationale: The company lowered lumps and fines prices by four percent in July. Citi expects  room for further downside in FY14 prices.

Sail

Brokerage: Credit Suisse

Rating: Underperform

Target: Rs 30

Rationale: They feel the debt is likely to rise, with capex still exceeding operating cash flows.

Bata

Brokerage: Nomura

Rating: Buy

Target: Rs 990

Rationale: They see over 16 percent upside potential given its stability and visibility of earnings growth.