Buy, Sell, Hold: 6 stocks on analysts’ radar today

Sun Pharma

Brokerage: Morgan Stanley | Rating: Underweight

The global broking firm highlighted that SPARC’s Baclofen GRS failed to meet pivotal PH3 end-points. It also highlighted that the company is manufacturing and marketing partner of SPARC on a product by product and merit-based selection process. Baclofen GRS was the key product in SPARC's pipeline, it added. In fact, Baclofen now has low probability of commercialisation in DMs. Going forward, for the company, Elepsia XL & Xelpros are mid-sized opportunities in SPARC's pipeline and are delayed due to Halol issues.

Granules

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 200

Motilal Oswal expects the company to make APIs in the second half of next fiscal from Vizag plant. It expects 35% profit CAGR over FY17-20 and said that strong growth will be driven primarily by ramp up of base business. The brokerage house believes that the stock has potential to deliver greater than 50 percent return in 12-18 months.

Titan

Brokerage: CLSA | Rating: Buy | Target: Rs 700

The brokerage said that government’s move to defer PMLA for the sector came in at the right time, given the ensuing festive season. It also said that Titan is its preferred pick.

Sobha

Brokerage: CLSA | Rating: Buy | Target: Rs 525

The brokerage house said that while sales have gathered further traction, Q2 pre-sales are at 10-quarter high. In fact, a steady execution and good portfolio will help it to perform well, it added. Going forward, it expects pre-sales to do well for the next few quarters.

M&M Fin

Brokerage: Nomura | Rating: Neutral | Target: Rs 460

Nomura expects RoE to improve to 16%, but valuations factor in part of the improvement. It observed that the company was well-positioned for a rural recovery and sees credit growth picking up to 16-18 percent CAGR over FY17-20. Going forward, the company’s net interest margin may inch up by 75 basis points, it added.

Tata Motors

Brokerage: Credit Suisse | Rating: Outperform | Target: Cut to Rs 560

The brokerage house said that brining Discover volume target down has lead to 5 percent cut to JLR’s FY18 EBITDA. It expects H2 volume growth at JLR 15% Vs 4% in the first half.