Check out what the brokerage houses picked for investment:
Credit Suisse has maintained outperform call on Larsen & Toubro, the engineering & construction giant, given reasonable valuations.
It believes the working capital days have peaked out and EPC free cash should drive higher dividends.
L&T is in the process of sizeable selldown of assets with equity capital release of Rs 3,600 crore, and net positive impact of Rs 150 crore on recurring PAT from four transactions. Another Rs 2,800 crore of capital can be released from potential transactions with PAT impact of Rs 800 crore, it feels.
Credit Suisse believes that L&T would need to restructure Hyderabad metro project as well as seek compensation from government for delays.
According to the brokerage house, key risks are slow execution, stuck working capital, and fat project tails.
Citi has a buy call on the stock with a target of Rs 790 per share, saying it remains top pick amongst small caps after quarterly earnings.
It believes, Dhariwal losses should gradually reduce to Rs 1,500 crore by FY19.
"During Q1FY17, Dhariwal generated 394 million units and sold 359 million units. 100MW supply to TANGEDCO started from December 16, 2015. Supply of 187MW power to Noida has been approved by UPERC. Fuel supply agreement has been signed with Coal India in March 2016 and coal movement has started. Management is attempting to tie up the remaining 300MW," the brokerage house explains.
CLSA also has a buy call on CESC with increased target price at Rs 775 (from Rs 665 per share).
Scaling up distribution business by winning new concessions and ability to pass-through captive coal mine related charges will be key, the brokerage house says.
Nomura advised buying the stock with a target price of Rs 295 per share. It believes order backlog at Rs 72,000 crore remains strong & is a key positive.
The brokerage house says Q1 earnings below estimates on weak realty results and gross margins declined to 8.8 percent on lower revenue mix from real estate.
Morgan Stanley is overweight on UPL with a target price of Rs 889 as it expects 15 percent revenue CAGR In FY16-19.
According to the brokerage house, 5 key products may grow at 35 percent CAGR. Strong portfolio & presence in high-growth markets are key catalysts, it says.
Morgan Stanley is also overweight on Glenmark with a target of Rs 1,009 per share.
Morgan Stanley is overweight on Reliance Communications with a target price of Rs 93 after quarterly earnings and merger announced with Aircel.
It says one of the key benefits is extension of expiry for 1800 MHz (largely unliberalized) spectrum from 2021 to 2024/2026, apart from stronger 2100 MHz spectrum portfolio of the combined entities.
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