5 Good Stocks recommended by Stock Brokers in April-2017
Investors love to invest in stocks as they give quick returns in Indian stock market. There are several experts keep recommending stock tips in India. Several stock brokers keep pumping latest stock recommendations with their analysis week on week based on financial results. Some stocks might be available at cheap valuation. We have filtered 5 good stocks recommended by Stock Brokers in Apr-2017. How these stocks performed in last 1 year? What are the reasons behind their recommendation for such stocks?
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5 Good Stocks recommended by Stock Brokers in April-2017
Here are the top 5 stock recommendations from stock market experts for April, 2017. These stocks are picked based on recommendations from these experts from last 2 weeks.
#1 – Ashok Leyland – Current Market Price Rs 82 – Target Rs 125 – Upside of 52%
Last week Edelweiss recommended “buy” for this stock indicating that it is bullish on this stock with a target price of Rs 125.
Ashok Leyland Ltd did not panic during the transition phase (post Supreme Court’s March 29, 2017, order banning sale of BS-III vehicles from April 1, 2017) due to a well chalked out strategy to handle BS-III stock. Given the technology adopted by the company, replacing BS-III engines with BS-IV ones was as simple as replacing one battery with another. It envisages cost impact (labour, wiring harness, etc) to be minimal.
They estimate EPS CAGR of 26% over FY16-19 and RoE to improve 830bps to 26.4% in FY19 (18% in FY16). They maintain ‘BUY’ with Rs 125 target price.
Systematix and ICICI Direct, stock market experts also gave buy recommendation on this stock couple of months back.
I feel this is one of the good stocks to invest as it has not performed well in last year, and expected to provide good returns this year.
#2 – YES Bank – Current Market Price Rs 1,616 – Target Rs 2,110 – Upside of 31%
Last week Motilal Oswal recommended “BUY” for this stock indicating that it is bullish on this stock for a target price of Rs 2,110.
As per their report, YES Bank is available at 30% discount to private banks. Robust BV CAGR of 23%, superior RoEs, strong asset quality and increased balance sheet, should drive a re-rating, in its view. They expect YES Bank to bridge the valuation gap v/s peers, and thus, reiterate Buy with a target price of INR 2,110.
In the last 1 year, this stock price increased by 88% indicating superior performance of the stock.
I feel this is one of the best stocks for April 2017 to invest which can provide good returns in next 1 year.
Also Read: Best Aggressive Growth Mutual Funds for 2017
#3 – Dewan Housing Finance – Current Market Price Rs 390 – Target Rs 500 – Upside of 28%
Last week Motilal Oswal gave BUY recommendation for this stock indicating that it is bullish on this stock for a target price of Rs 500.
They believe this transaction would shore up tier-I ratio by 350bp, taking it to more than 15%, the highest in five years. More importantly, this would be achieved without any equity dilution. Strong capitalization and opportunities in the space would help sustain strong AUM CAGR of 20%+ for the next three years.
In the last 1 year, this stock price increased by 88% indicating superior performance of the stock.
#4 – Phoenix Mills – Current Market Price Rs 408 – Target Rs 508 – Upside of 25%
Axis Direct recommends “buy” for this stock for a target price of Rs 508.
Phoenix Mills Ltd’s 49% stake divestment in its subsidiary holding Market City Bangalore for Rs 16 bn to CPPIB values the mall at a cap rate of 6.4% as per its estimate.
They revised its cap rate to 7% for HSP, Pune, and Chennai malls. Consequently, its revised Target price stands at Rs 528.
#5 – Vedanta – Current Market Price Rs 244 – Target Rs 300 – Upside of 23%
Last week Edelweiss recommended to buy this stock indicating that it is bullish on this stock for a target price of Rs 300.
Vedanta has announced April 11, 2017, as the effective date of merger with Cairn. They reiterated their view that the biggest positive for Vedanta is the access to Cairn’s Rs 250 bn cash balance and cancellation of the USD1.5 bn inter-company loan rolled over earlier this year.
Factoring in the preference share issue and dividend payout to Cairn’s shareholders, the merged entity is trading almost at par with Vedanta current stock price. Its revised target price (ex-dividend) comes to Rs 300, implying an exit FY19E EBITDA of 6x.
Axis Direct and Centrum also gave buy recommendation to this stock in the last 2 months.
Also Read: Top 10 Stocks which are in upward trend based on technical analysis
Disclaimer: I am holding some of these stocks and continue to hold them in future too. These stock recommendations are given by stock experts based on certain facts and reiterated by us based on strong fundamentals. There is no guarantee that these stocks would perform well in future too.
Readers, are you investing in these stocks? What are your recommendations about these stocks?
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Suresh
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Hi Suresh,
I am holding 700 shares of Sterlite Technologies @52. should i hold or book profits.
Sir
Holding 300shares of Cairn India,
I am a long term investor
Please advice whether to sell or continue as it is?
regards
bhanu
Are these for a long term hold?
I believe Yes bank is overrated. So is lavenues ssupermart (though it is not mentioned here)