3 Large, Small Cap Stocks That Get Sell, Reduce Recommendations From 3 Brokerages

1. Sell Nestle India Ltd

HDFC Securities has assigned sell call to Nestle India with a target price of Rs 18,500 apiece. Current market price of Nestle India is Rs 18582.25 apiece. The large cap stock has a market capitalisation of Rs 1,79,162.09 crore.

According to HDFC Securities, "Nestle reported a miss on revenue while the margin was ahead of expectations. Nestle continued to focus on distribution strengthening, category expansion and capacity building (capex of INR 50bn planned for the next three years). We value Nestle at 52x P/E on Dec-24E EPS to derive a TP of INR 18,500. With a rich valuation, the absolute upside is limited in the medium term. Maintain REDUCE."

It gave 5% return in last 1-year and 14% return in last 3-years. It declared a dividend of Rs 75.0 per share on 16 Feb, 2023 with record date of 21 Apr, 2023.

2. Sell Page Industries

Geojit has recommended investors to sell large cap stock Page Industries with a target price of Rs 34,277 apiece. Current market price of the stock is Rs 37903.75 apiece. It has a market capitalisation of Rs 42,277.37 crore. The stock fell 20% in last 3-months and 8% in last 1-year.

According to Geojit, "We expect the tepid volume growth and pressure on margins to continue in Q4FY23 as well, due to competition and higher spending on promotional activities. Further, given its rich valuation and limited upside potential, we assign SELL rating and value the stock at a P/E of 43x FY25 EPS."

The company on 9 February 2023 declared 3rd Interim Dividend 2022-23 of Rs. 60/- per equity share. The record date was February 17, 2023.

3. Garden Reach Shipbuilders

ICICI Securities has upgraded the stock to "Reduce" with target price of Rs 385 apiece. Current market price of the stock is Rs 413.00 apiece. The company has a market capitalisation of Rs 4,731.00 crore.

The small cap stock operates in Shipping sector. It rallied 87% in last 1-year.

According to ICICI Securities, "The stock has corrected in line with our expectations and we see the downside relatively limited hereon, as the possibility of earnings going downhill post FY27E is being factored-in. Our unchanged target price of Rs385 (on DCF framework) implies a downside of 7.5%; hence we upgrade the stock to REDUCE (earlier: Sell)."

Disclaimer

The stocks have been picked from the brokerage reports of ICICI Securities, HDFC Securities, and Geojit. Greynium Information Technologies, the Author, and the respective Brokerage Houses 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.