Buy, Sell, Hold: 4 sectors and 2 sectors are on analysts’ radar today

Brokerage: CLSA | Rating: Buy | Target: Cut to Rs 1,400

CLSA expects a recovery in hospital business from the second half of this fiscal. Meanwhile, it moderated margin assumptions by 100-150 basis points for FY18-20. A weak first quarter and price caps lead to earnings cut to 28-43 percent.

Jubilant Food

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,450

The global financial services firm expects the worm incident to have no material impact on the company’s operations, while estimates remain unchanged. It forecast EBITDA growth of 35 percent over FY17-19. In fact, the stock remains a top pick in consumer discretionary space.

Dr’ Reddy’s

Brokerage: Morgan Stanley | Rating: Equalweight | Target: Rs 2,798

The brokerage house said that mid-long term pipeline is strong but launches may take time due to headwinds.

Pharma

Brokerage: JM Financial

The brokerage house said that problems for the sector galore, but offsets exist. Further, it added that the current base reset lends itself to an environment conducive to bottom-up stock picking. It finds the risk reward particularly attractive in Sun Pharma, with 18 percent upside.

OMCs

Brokerage: Morgan Stanley

The global research firm highlighted the oil minister’s comments that fuel eventually being included in GST is being probed. For these firms, it said, transparency, formulae-linked pricing and increased efficiency remains in focus. On the financial front, it expects them to report core profit growth of 20-25 percent on strong refining margins and expects trend of core profit growth to extend next year as margins inch up.