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Stocks to Buy/Sell: Buy ONGC, Tata Motors, Sell NMDC

The Quint looks at stock recommendations from brokerage firms for you to buy/ sell post the March quarter results.

Updated
Business
2 min read
(Photo:iStock)

The Quint looks at some stock recommendations from brokerage firms for you to buy/ sell post the March quarter results.

IDBI Capital has revised lower its BUY rating on Tata Motors with a target price of Rs 614 per share against its last close price of Rs 483 reflecting a gain of 27 %. For the March quarter, the company reported a sharp fall in net profit due to higher expenses on new launches/incentives, higher depreciation and amortisation and adverse currency movements. Overall, while the long term growth prospects of JLR business are sound, slowdown in China, Russia and, European regions (due to Greece issue) will weigh on performance in the near term. Tata Motor’s stock is up 14 % in the last one year viz the Sensex’s gain of 12 %.

Religare has a BUY rating on ONGC with a target price of Rs 470 per share against its last close price of Rs 328, reflecting a gain of 43%. The upside in the stock performance is due to better net crude realisations and an improvement in crude/natural gas production. ONCG reported a 19.5% fall in net profit to Rs 3,935 crore for the quarter ended March 31, 2015, mainly due to higher operating cost and write-off on dry wells drilled.

Kotak Equities also has a buy rating on the stock. However, its target price is Rs 365 over a one year time frame. The stock has fallen 16% in the last one year against the 12% gain in Sensex.

Kotak has a SELL rating on NMDC with a target price of Rs 110 per share viz its last close price of Rs 131 per share. The report says that there are challenging times ahead as improving domestic supply and weak global iron ore prices will pressure NMDC’s realisations and lead to a decline in earnings over the next 12-24 months. NMDC’s scrip has fallen by 27 % in the last one year against the 12% rise in the BSE Sensex.

India Infoline recommends accumulating Coal India with a price target of Rs 412 per share reflecting a gain of 7.6% over its last close of Rs 383. “Power for all” emphasis by the government and the 1 bn tons of coal production target set by the Power Ministry to meet rising demand for the domestic market augurs well for the company.

Coal India has under performed the benchmark indices over the last one year due to the overhang of the Government’s share sale and disappointment on volume growth. The stock is up 2.45% viz the 12% rise in the BSE Sensex in the last one year. Kotak also recommends buying Coal India with a target price of Rs 420 per share.

(Disclaimer: Recommendations are from various brokerage/research houses and experts and Quint does not endorse nor take responsibility for any investment decision based on the above recommendations)

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