FAG Bearings

Brokerage firm Edelweiss is bullish on the stock of FAG Bearings and has recommended buying the stock with a price target of Rs 4,700.

"We estimate robust 20 per cent earnings CAGR (compounded annual growth rate) and RoCE (return on capital employed) expansion by 1.47 per cent, year-on-year to 23.4 per cent over Calendar Year 16-18. Further, there is scope for sales improvement (assumed 13% CAGR over CY16-18 versus 25-30% growth during CY10-11, when the cycle turned). Hence, we retain ‘BUY'valuing the stock at 28x CY18E EPS. The stock trades at 29.4x CY17E and 24.8x CY18E EPS." the firm has said in its research report.

Hindalco

Geojit has placed a buy call on the stock of Hindalco with a price target of Rs 208 on the stock.

"Better product mix, focus on down stream expansion and higher coal linkages will drive growth going
forward. Further, strong free cash flow generation will help the company in deleveraging its balance sheet. We estimate consolidated EBITDA/PAT to witness a compounded annual growth rate of 17 per cent over FY16-19E. "We factor consolidated EBITDA margin expansion of 450 bps over FY16-19E owing to better product mix coupled with benefit of higher coal linkages and steady aluminium prices. We assign BUY rating to the stock with a target price (TP) of Rs 208 using sum of the part (SOTP) valuation methodology," the firm has said in its research report.

Mahindra CIE Automotive

Systematix Institutional Equities is bullish on the stock of Mahindra CIE Automotive and has placeed a buy rating on the stock. "We believe a renewed focus of the new management on growth along with productivity gains without any diversion from key CIE financial covenants--1) free cash flow of >50% EBITDA, EBIT margin of 10%+, 2) net debt/EBITDA of <2x and 3) >20% RONA provide financial comfort in the medium term. Our target price stands at Rs 280 (18x CY1 8eEPS). We believe the company is a structural multi
-year story, with more turnaround and efficiency improvement legs to go".

Sanofi India

Centrum Broking has placed a buy call on the stock of Sanofi India. "We believe that recovery in margins, driven by price hikes in key brands will drive its earnings over CY15 -18E (at CAGRof 23%). The stock currently trades at 30xCY17E and 25x CY18E, at discount to its five year average P/E multiples. The firm believes Sanofi should command a premium because of strong brands, strong MNC parentage and high payout ratio," the company has said in its research report.

Sunteck Realty

Axis Bank has placed a buy call on Sunteck Realty with a price target of Rs 329 in its research report.

"SRL can generate strong net cash flows from its ready/near ready BKC projects (Rs 23 bn) and ongoing Goregaon project (Rs 13.6 bn) which is significantly higher than its current EV (Rs 26 bn). Further, there are drivers which can improve sales traction at its key projects in BKC (Pearl to be completed in next few quarters) and Goregaon (opening of new flyovers and railway station in last 3 quarters)," the firm has stated.

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