Brokerages recommend four stocks for investment
(1) Tata Power
Brokerage: Goldman Sachs
Target: Rs 121
Rationale: With the stock trading at a 20% discount to its existing asset value, visibility on timelines for the power purchase agreement resolution will trigger a re-rating.
(2) Tata Motors:
Target: Rs 260
Rationale: They have cut the FY13 EPS by 13%, factoring in lower volumes and margins for both JLR and the India business. They now see an earnings decline of 15% in FY13.
Brokerage: Deutsche Bank
Target: Rs 140
Rationale: Exide’s profitability is unlikely to revert to normalised levels in the medium-term. While earnings should recover over the next two years, current valuations have already priced in the recovery.
Target: Rs 590
Rationale: While the management has executed well, the stock has limited upside on demand pressure and margin headwinds from wage increases.