The Nifty logged its worst 1-day losses in 9 months on Friday- February 28 and fear has gripped investors. However, as most seasoned market analysts would recommend, this is also a potential opportunity to look for value buys. Here are some stocks that leading brokerages like Jefferies, Motilal Oswal and Nuvama are positive on and have put a Buy recommendation despite the recent correction –
Jefferies on Polycab: Top pick in cable & wire industry
Jefferies has identified Polycab as the top pick in the cable and wire industry. They have a Buy rating on the stock with a target price of Rs 7,700 per share. This implies a whopping 63% upside for Polycab share price from current level. According to the brokerage, the “target price premium to the stock’s historical 5-year average is on the back of higher volumes from capex, housing and benefits from strategic initiatives.” The stock is their top pick in the cable and wire segment. According to Jefferies, sales in residential segment can potentially commence immediately compared to power transmission and industrial cables which need 2-4 years for prequalification. As a result, they see the competitive impact of a new big player like UltraTech to be lesser on Polycab as the company has “65-70% of its sales mix is Cables (B2B). Whereas impact on Housing wires / B2C players such as Finolex and Havells could be relatively higher.”
ALSO READUltraTech Cement slides 5% – Find out why brokerages recommend ‘buy on correction’ Motilal Oswal on LTIMindtree- Buy recommendation, sees room for 35% upside
The Tech stocks were badly beaten in trade and LTIMindtree is down 10% in past 5 sessions. However, Motilal Oswal has a Buy on the stock with a price target of Rs 6,600 per share. This implies an upside of 35% for the share price. According to Motilal Oswal, the stock is “bruised but oversold.” They see the “risk-reward ratio favourable in the stock and valuations attractive now.” According to them, the “near-term catalysts—weakness in hi-tech in Q4 and management’s time to settle in—preclude an immediate recovery in price, but we reiterate Buy on strong fundamentals and keep our focus on the turnaround.” The Motilal Oswal Report states that, “The appointment of Venu Lambu is a positive and should provide the company with much- needed growth momentum.
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