Stocks recommended by brokers - Fusion - WeRIndia

This week, the Bank of Japan surprised with negative interest rates. After the dipping in beginning of January 2016, the markets have recovered. During this time, here are three stocks that many brokerages are recommending for investors to buy.

Colgate

Religare has put a buy rating on the stock of Colgate and has been bullish on it. They have pared their FY16-FY18 EPS by 4 to 9 percent because of the less amount of sales growth than what they previously thought. They are maintaining their BUY rating of 33x/28 FY17/FY18 and roll over to a Mar’17 target price of Rs 1,080.

Lakshmi Vilas Bank

With a target price of Rs. 120 on the stock, Axis Direct is bullish on Lakshmi Vilas Bank. They have reiterated BUY at a target price of Rs. 112 which is a 20 percent upside. They valued it at 1.2x FY17E ABV of Rs 93. They have CMP of Rs 93 and LVB trades at 1.1x/1.0x FY16E/FY17E ABV of Rs 84/Rs 93. It is believed that going forward there is likely to be an increase in CASA in order to support NIM. Combined with the lower credit cost, it will drive RoA (0.8% by FY18).

Ashoka Buildcon

When it comes to Ashoka Buildcob, ICICI Direct is bullish on it. Based on their strong track record, they are going to maintain their positive stance on the stock. Other factors to maintain a positive record on the stock are well funded BOT road project portfolio and huge opportunity from awarding in the road vertical, going forward. They are rolling over their valuation to FY18 and value the stock with an SOTP based price target of | 235/share. Furthermore, they have valued ABL’s BOT projects at 37.7/share and the EPC business (net of debt) has been valued at 97.2/share (6x FY18 EV/EBITDA) whereas the ACL has been valued at 68.3/share.

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