By Aditya Raghunath
Investing.com -- Brokerage firm BOB Capital Markets believes these three stocks are over-valued and investors should reduce their exposure to them. It has a sell recommendation on these stocks in its recent reports released this month.
- Apollo Tyres Ltd (NS: APLO )
Current price: Rs 209.7
Target price: Rs 140
Apollo Tyres reported consolidated revenue that dipped 3% QoQ to Rs 5,000 crore. Profit after tax fell 36% QoQ to Rs 290 crore. The firm says, “We expect consolidated margins to remain stressed given steep RM cost inflation, higher share of the lower-margin India business, and an adverse product mix as OEM demand returns in FY22. Current valuations at 25x FY23E EPS look rich – retain SELL.”
- Pidilite Industries Ltd. (NS: PIDI )
Current Price: Rs 1,889
Target price: Rs 1m365
BOB Capital Markets said in its research note, “Management expects margins to remain under pressure due to higher RM cost. Retain SELL with an unchanged Mar’22 TP of Rs 1,365 given the downside risk to earnings from RM cost inflation plus rich valuations of 58x FY23E P/E.”
- Mphasis Ltd (NS: MBFL )
Current price: Rs 1,742
Target price: Rs 1,580
BOB Capital Markets has downgraded Mphasis from reduce to sell based on an unchanged 17x P/E. The firm says that the company is a laggard and there is going to be selling pressure on the stock.
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Opposite will happenLike 10
Market will trap n fall ahead right now go bullishLike 2
very big correction to all share.... some company effect to lockdownLike 1
I believe applo tyres is 140 ranges is trueLike 1