What to buy, sell or hold

Centrum Equity Research has a buy rating on Mahindra & Mahindra with a target price of Rs 1,500. The brokerage said it remains best-placed among OEM manufacturers to leverage the recovery in rural demand. It said deficient monsoons, subdued recovery in rural demand and increase in competition could be the biggest risks. At the CMP, the stock is trading at 21x FY17 and 18x FY18 estimated earnings. Mahindra & Mahindra rose 0.60 per cent to Rs 1377.85 on Tuesday.

Geojit BNP Paribas has an accumulate rating on Bata India with a target price of Rs 619 citing that it has factored in a robust 29 per cent CAGR PAT over FY16-18. It said that being an established player in the consumer space with strong earnings outlook, it would sustain its premium valuation. It pegged P/E at 36.8x FY17 and 30.2x FY18 estimated earnings. Bata India fell 0.90 per cent to Rs 553.60 on Tuesday.

Religare has a sell rating on United Spirits with a target price of Rs 2,350 citing that management seems sanguine about improvement in product mix, margin profile and capital efficiency. It pegged P/E at 64.5x FY17 and 45.2x FY18 estimated earnings. United Spirits fell 0.45 per cent to Rs 2462.40 on Tuesday.

Nirmal Bang has a buy rating on Power Mech Projects with a target price of Rs 593 citing that with a strong order book of Rs 3,500 crore, it expects 17 per cent revenue CAGR over FY16-FY18. The stock is trading at an attractive valuation of 7.5x FY18 estimated earnings. Power Mech Projects rose 0.66