7 Stocks That Brokers Are Saying To “Buy”

Markets are trading at a new 2016 peak and a 11-month high. Here are 7 stocks that brokerages are suggesting investors to buy. Brokerage firm K R Choksey has suggested buying the stock of HPCL. The firm believes that the stock trades at 8.7 times its 2017 EPS and has a huge upside potential from current levels.We value HPCL at 5.0x for refining and 7x for marketing to arrive at a fair value of Rs1,394 implying a 34.9% upside. Post de-regulation, we expect marketing division profitability to grow rapidly, hence should also command a higher valuation, the research firm has stated in its report.The stock of HPCL was last trading at Rs 1037 on the NSE. Advertisement Motilal Oswal has placed a buy rating on Tata Motors with a price target of Rs 558 on the stock. The firm has set a target of Rs 390 on the DVRs.The stock trades at 12.7x/8.2x FY17/FY18E consolidated EPS. We maintain our Buy rating with a target price of INR 558 (FY18 SOTP-based) for ordinary shares and INR 390 for DVR (~30% discount to TP for ordinary shares, the brokerage firm has said. Religare is bullish on ITC. The firm believes that the p/e for ITC at 24 is extremely reasonable. We expect a better FY17 with a more benign excise hike and ITCs enhanced focus on volumes and limit price increases, the firm has stated in its research report.The stock of ITC was last trading at Rs 246 on the National Stock Exchange. Religare is bullish on Somany Ceramics and has set a target of Rs 615 on the stock with a buy rating.SOMCs earnings should increase at a 32% CAGR over FY16-FY18E with improving return ratios. We value the company at 22x FY18 PER - at a ~5% discount to KJCs target multiple vs. a discount of 15% earlier. Maintain BUY with a Mar17 TP of Rs 615, the company has stated in its research report. Reliance Securities has placed a buy call on IndusInd Bank with a price target of Rs 1278. The Bank is well on the track to achieve the target set for Planning Cycle-III by consistently achieving its short-term and medium-term goals. As the Banks total branch count is expected to reach 1,200 by FY17E-end, we believe that it is likely to sustain strong growth in CASA deposits as well as fee income. Stress in CV/consumer finance portfolio will also come-off due to improved operating environment. We continue to recommend BUY on the stock with a revised Target Price of Rs1278 based on 3.3x FY18 Adjusted Book Value. Religare is bullish on VMART and has set a sharply higher price target on the company.VMART currently trades at a PER of 15.1x FY18 which is attractive given its solid growth prospects and improving return ratios. Maintain BUY with a revised Mar17 TP of Rs 620 (from Rs 685 earlier), the firm has stated in its research report. Dynamic Levels has placed a buy call on Igarashi Motors.Igarashi Motors specializes in the design and manufacture of small, permanent magnet DC motors and gear motors. For over half a century, Igarashi Motors has been dedicated to providing quality product and service to their customers. Since their establishment in 1952, they have grown to include a large variety of DC motors, Armatures, High voltage motors, Gear motors to supply a complete range of products to best meet their customers needs. Motors are designed for a wide range of commercial and industrial applications, including power tools, home appliances, automotive, and business equipment products. We recommend BUY in Igarashi Motor @ 675 with the target of 775.