What to buy, hold and sell

> HDFC Securities has initiated coverage on Hindustan Zinc with a target price of Rs 195 citing that the company should benefit from zinc’s improving fundamentals. The brokerage said valuations are compelling and the one-off Rs 24 dividend is a big plus. It pegged the firm’s P/E at 9.7 times FY17 estimated earnings and 9.1 times FY18 estimated earnings. Hindustan Zinc rose 0.74% to Rs 184.85 on Friday.

> Phillip Capital has initiated coverage on Atul Limited with a neutral rating and a target price of Rs 1,650. The brokerage said the company’s muted growth, on the revenues and profit front makes it pessimistic though it has a strong historical track record of steady growth. It said the stock trades at 13 times FY18 estimated earnings and 7x FY18 EV/EBITDA. The stock fell 1.14% to Rs 1,523.35 on Friday.

> Karvy Stock Broking has downgraded its rating on UltraTech Cement from buy to hold with a target price of Rs 3,352 because of the recent run up in the stock. The brokerage said the acquisition of Jaypee’s 21.2 mt capacity is good for the company. It said the stock is fairly valued at 16 times FY17 and 12.5 times FY18 EV/EBITDA. UltraTech Cement fell 0.70% to Rs 3,204.45 on Friday.

>Religare has maintained a buy rating on Grasim Industries with a target price of Rs 5,000 citing that with cement likely to do well, further improvement in the VSF/chemical markets could result in contraction of the holding company discount. The brokerage said with the VSF plant expansion in Gujarat, Grasim’s total market share is 9% globally. Grasim Industries rose 0.33% to 3,854.00 on Friday.