Buy, Sell, Hold: Here are 4 stocks and 4 sectors on brokerages’ radar today

Brokerage: Emkay | Rating: Upgrade to Buy | Target: Raised to Rs 1,248

The brokerage house said that its demerger plan is value accretive. It also revised earnings estimates for Spencer’s by 25 percent for FY18 and 74 percent for FY19.

Thermax

Brokerage: IIFL | Rating: Add | Target: Rs 1,054

The brokerage house said that it cut EPS estimates by 6/3/3 percent for FY18/19/20. Further, it expects revenue and profit to grow at a CAGR of 14/15 percent over FY17-20.

Aurobindo Pharma

Brokerage: HSBC | Rating: Buy | Target: Lowered to Rs 850

HSBC said that outlook for US remains steady with multiple visible launches. Further, it said that commissioning of new facilities will help in better launch rate.

Steel

Brokerage: Credit Suisse

Credit Suisse said that a sharp surge in steelmaking raw materials points to lack of slack in steel value chain. Additionally, it said that steel stocks have re-rated meaningfully & appear expensive on price to book value. It likes Tata Steel and has an outperform rating with a target of Rs 720. It also likes JSW Steel with the outperform rating and a target of Rs 265. Meanwhile, it is neutral on JSPL with a target of Rs 150.

Healthcare

Brokerage: CLSA

CLSA said its interactions suggest that the government shouldn’t widen price caps on medical consumables. Further, it said that while improving affordability is welcome, accessibility and awareness also important. Moreover, it also said that the government’s move to improve affordability is a step in the right direction.

Consumer Durables

Brokerage: Morgan Stanley

The global research firm forecast single-digit earnings growth for midcap staples – GCPL, Dabur & Marico. Further, it said that the volume growth must be analysed on2-year stack, which may suggest gradual improvement. It is equalweight On Godrej Consumer with target price at Rs 875 as well as Dabur with a target of Rs 305. Meanwhile, it is underweight on Marico with a target of Rs 270.

Oil & Gas

Brokerage: JPMorgan

The global research firm expects oil marketing companies to report strong earnings in the second quarter, but the second half of FY18 could cool off. Further, it said that the recent surge in refining is a positive sign for Reliance Industries. It remains overweight on Indian Oil and BPCL, while it is underweight on HPCL.