What to Buy, Sell and Hold

Bank of America Merrill Lynch initiates coverage on Inox Leisure with a buy rating and set a target price of Rs 300 citing the rising contribution of high-margin revenue streams like food and beverages and ad rev enue as well as operational leverage benefits to improve its EBITDA margin. They expect momentum to be sustained and see margin im proving to 18% in FY19. The brokerage estimates InoxRs s EPS CAGR during FY15-18 to be 86% ROE increasing four fold from 4% in FY15 to 15% in FY18. The stock ended at Rs 233.80 on Friday.

Angel Broking has main tained buy recommendation on Blue Star with a price tar get of Rs 439. The brokerage said that the companyRs s RAC business has been outgrow ing the industry over the last few quarters. It expects the overall top line to post CAGR of 11.2% over 2014-2018 and margins to improve to 7.1% in FY18. Moreover, the pro posed merger with Blue Star Infotech will provide cash influx. The stock rose 0.34% to Rs 372.45 on Friday.

Goldman Sachs has main tained their neutral rating on Reliance Communications, but raised their target price to Rs 83 based on core as sumption changes and in cluding 50% of the pro-forma value for the tower sale and MTS merger. The brokerage forecast RCOMRs s core busi ness will lose 130 bps market share between FY15 and FY18, despite an increase in annual core capex to Rs 2,800 3,000 cr over FY16-18.The stock rose 1.97% to close at Rs 82.8 on Friday. Religare reiterated the hold rating on Bajaj Corp with a target price of Rs 510.

The brokerage pares their FY16-18 earnings estimate by 2-4% amid weak demand and subdued volume growth. The hold rating is based on valuations of 21.2x18.4x FY17FY18 earnings. The stock closed 0.33% down at Rs 404.15 on Friday.