These Four Stocks Get A Thumbs-Up From Brokerages

09 Jan 2018, 08:59 AM IST

Traders work in front of monitors as tickers display stock prices inside a stock exchange. (Photographer: Dimas Ardian/Bloomberg)

Brokerage houses initiated coverage on four stocks with a bullish view. They are Mahindra Logistics Ltd., coffee exporter CCL Products India Ltd. apparel maker Raymond Ltd. and software services provider eClerx Services Ltd.

Here’s what the analysts had to say:

Initiated ‘Buy’ with target price of Rs 520, implying a potential upside of 17.5 percent from Friday’s close.
Well-placed to leverage unique asset-light model and large client base.
Most asset-light third-party logistics service provider among listed peers.
Shift towards third-party logistics to drive growth for the company.
Non-auto sectors to accelerate double-digit growth in third-party logistics.
Business scope can expand into other avenues.
Expect the timely resolution of issue of tax deducted at source to normalise working capital.
Expect revenue, operating income and net profit to grow at a compounded annual growth rate of 24 percent, 31 percent and 30 percent over the financial years through March 2020.
Premium to peers’ justifiable given growth prospects.

Initiated ‘Buy’, with target price of Rs 360, implying a potential upside of 19.2 percent from Friday’s close.
CCL is largest Indian manufacturer and exporter of instant coffee with 24 percent market share.
Hedged business model has created healthy moat.
Ramping up of facilities to foray in newer markets.
Strong balance sheet and healthy return ratios.
Vietnam expansion is an excellent strategic move.
Indian retail business to also be another booster in near term.
Expect more than 17 percent growth trajectory over the financial years through March 2020.

Initiated ‘Accumulate’ with target price of Rs 1,161, implying a potential upside of 4.6 percent from Friday’s close.
Bright growth prospects in branded Apparel segment ahead.
Positives: strategic plant set-up in Ethiopia and unlocking value in the non-core segments.
Due to restructuring exercises company is on a high growth path.
Shifting its focus from non-core businesses to core business.
Branded apparel segment will give thrust to drive sales.
Turnaround of Tools and Hardware business to progress well.
Expect auto component business to continue profitable growth momentum.
Expect revenue and net profit to grow at double-digit CAGR over the financial years through March 2020.
Valuations have run up sharply and leave little upside.

Initiated ‘Outperformer’ with target price of Rs 1,780, implying a potential upside of 15.8 percent from Friday’s close.
Client concentration easing.
Strong capital allocation to sustain.
Acquisitions adding new vertical/capabilities/logos.
Growth challenges among top 10 clients now behind.
Expect increase in IT spends in BFSI.
Expect revenue and earnings to grow at a compounded rate of 8.6 percent and 8 percent respectively over the financial years through March 2020. Expect earnings before interest and tax margins to stabilise and average around 27 percent during the period.