Stocks To Sell: Sell 3 Large Cap Stocks As Recommended By HDFC Securities Post Q3 Results

Leading brokerage firm, HDFC Securities has given sell recommendation to three stocks. These stocks are Hindustan Unilever, Asian Paints, and AU Small Finance Bank. Check key details below:

1. Sell Hindustan Unilever

HDFC Securities has assigned sell call to Hindustan Unilever stock with a target price of Rs 2400.

According to the analyst, "With RM (raw material) softening phase, the royalty increase will not pinch much but will limit the margin expansion. Our view remains the same: demand pick-up will be gradual while margin recovery will be faster. We cut EPS estimate for FY24/25 by 1/2%. We value the stock on 47x P/E on Dec-24E EPS to derive a TP of INR 2,400. Maintain REDUCE."

Hindustan Unilever's last trading price is Rs 2548.35 apiece. The large cap FMCG Sector stock's 52-week high is Rs 2741.00 apiece and 52-week low is Rs 1901.80 apiece, respectively.

It has a market capitalisation of Rs 5,98,758.09 crore. Hindustan Unilever has rallied 13% return in last 1-year, 24% return in last 3-years, and 87% in last 5-years. It fell 4% in last 30 days.

2. Sell Asian Paints

HDFC Securities has recommended investors to sell Asian Paints share with a target price of Rs 2680.

According to the brokerage, "While beneficial in the long run, it will certainly be a drain on FCFF and returns profile in the short to medium term. We largely maintain our FY24/25 EPS estimates (-1/-2%) and our REDUCE rating with a DCF-based TP of INR 2,680/share (earlier: INR2,700/share), implying 50x Dec-24 P/E."

Asian Paints last trading price is Rs 2788.10 on BSE. Its 52-week high at Rs 3590.00 apiece and 52-week low is Rs 2560.25 apiece, respectively.

The large cap stock has a market capitalisation of Rs 2,67,433.94 crore. The stock, operating in Building Materials sector, fell 15% in last 1-year, 11% in last 3-months, and surged 50% in last 3-years. In last 5-years, it soared 134%.

3. Sell AU Small Finance Bank

The analyst has suggested investors to sell AU Small Finance Bank shares with a target price of Rs 610.

According to the analyst, "In a rising interest rate environment, AUBANK has chosen to remain conservative in order to protect its margins and asset quality. However, continued investments in franchise-building and new businesses are likely to be a drag on medium-term profitability vectors. We continue to watch out for signs of operating leverage and the impact of incremental rate transmission on margins. We tweak our FY23E/FY24E estimates by +6% each for better risk-adjusted margins; maintain REDUCE, with a TP of INR610 (3.1x Sep-24 ABVPS)."

The last trading price of the stock is Rs 616.35 apiece with 52-week high at Rs 732.90 apiece and 52-week low at Rs 524.80 apiece, respectively. The company has a market capitalisation of Rs 41,080.47 crore.

The stock has declined 9% in last 1-month, gained 4% in last 3-months, and declined over 1% in last 1-year. It has given a return of 39% in last 5-years.

 

Disclaimer

The stocks have been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.