Caution! TVS Motor, GAIL, Idea among 5 stocks global brokerages recommend ‘Sell’

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26 Aug, 2025 12:21

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The Indian market touched fresh record highs in March, but there are some stocks which global brokerage recommend investors to either sell or bring down their holding in stocks such as InterGlobe, GAIL, Idea, Bharti Airtel, and TVS Motors Company.

The market may not be able to give stellar returns from current levels but the stock-specific action is likely to continue and investors should use every dip to accumulate stocks.

If you are long-term investors then just sit tight and enjoy the ride as Nifty may well break the recent record high of 9,218 to continue its journey towards mount 11,000. But, in the short-term markets may take a breather and then head higher.

A good portfolio strategy involves getting rid of those stocks which are unlikely to deliver a return in the medium to long term. Hence, investors should use any rally to either exit their positions or pare their holdings in select stocks.

We have collated a list of top five stocks where global brokerage firms such as CLSA, UBS, Deutsche Bank in a separate note to their clients in March either maintained sell or underperform rating.

UBS maintains a sell call on InterGlobe Aviation with a 12-month target price of Rs 750. The pricing is weaker than needed compared to the demand outlook. However, the management believes that it is a temporary business factor.

Rising fuel cost remains a potential catalyst towards higher yield, UBS said in a report. Indigo yields have seen bigger hit given higher exposure to the metro route.

Although the aircraft mix capacity growth is likely to remain strong, but management expects to pay out a large portion of net profits as dividends.

CLSA downgraded Bharti Airtel to underperform from buy earlier and has also slashed its 12-month target price to Rs 380 from Rs 393 earlier.

Bharti Airtel’s Rs 345 offer of unlimited voice and 1GB data/day blunts Jio's value proposition. It is worth noting that, Airtel's new offer will limit churn, but will dilute ARPU, said the CLSA report.

The global investment bank lowered FY18-19CL revenue by 10 percent and EBITDA by 17-19 percent to factor in ARPU dilution. But, reduction in dual-SIM's, as well as sector consolidation at a fast pace could provide upside, said the CLSA note.

Deutsche Bank maintains a sell rating on TVS Motor Company with a 12-month target price of Rs 305. The management is confident that strengthened product portfolio will drive margins, but the global investment bank expects the pace of market share gains to slow due to higher competitive intensity.

The global investment bank believes that current price-earnings multiple of 31x FY18E and 24x FY19E reflect adverse risk-reward. “Margins will improve only if it is able to garner strong leadership position,” said the Deutsche Bank report.

CLSA maintains a sell rating on Idea Cellular but slashed its 12-month target price to Rs 90 from Rs 100 earlier. Idea and Vodafone announced their merger earlier this week which will change the industry order.

Post-merger, while AB Group and Vodafone Plc will hold 26% and 45% stakes in the merged company, they will have the same voting rights and board representation.

Realisation of management’s expected merger synergies of Rs140bn from FY23 will be crucial in lowering its net debt/Ebitda ratio to a comfortable 3.0x.

“We lower our revenue and Ebitda forecasts by 2%-27% on the back of rising competition and lower our target price from Rs100 to Rs90/share,” said the CLSA report.

Citigroup maintains sell rating on GAIL India with a 12-month target price of Rs 347. GAIL's LPG segment has benefited in 2HFY17 from higher realisations and lower domestic gas prices.

Petchem too has gained from stabilisation and ramp-up of Pata II. However, further upside in both could be capped, said the Citigroup note.

“We forecast FY19E EBITDA/PAT for GAIL to decline 5%/7% driven by LNG trading (US contracts) and petchem,” it said. “We are concerned the market is pricing GAIL on peak earnings,” said the note.