Fundamental Reason: Recovery in tractors largely offset the
drag from decelerating u-v volumes and a weaker mix in the first quarter.
2.
BPCL
BUY BPCL, Target Rs 485
Fundamental Reason: While the profit is small, in the
context of losses reported by peers, BPCL stands out with relatively better
refining performance adding to subsidy support.
3. Tata Steel
BUY
Tata Steel, Target Rs 294
Fundamental Reason: Europe is showing signs of recovery,
while rupee depreciation is helping in protecting margins in India.
4. HPCL
BUY
HPCL, Target Rs 233
Fundamental Reason: Based on the recent stock price
correction, the brokerage believes the concern over high gross under-recoveries
is already factored in the price. They don’t expect the switch to EPP to go
through as it will have a significant negative impact on the profitability and
will undo the positive impact of diesel price hike.
5. DLF
BUY
DLF, Target Rs 180
Fundamental Reason: Given the weak macro and higher interest
rate environment, the risk to demand and property prices is likely to be on the
downside.
