What to buy, sell and hold

Sharekhan has a hold rating on The Ramco Cements with a revised target price of Rs 465. It said that after the recent appreciation, the stock is trading at an enterprise value of close to 9x its FY18 estimated earnings. It also sees pressure for south-based players in the immediate term. It sees very limited scope of revival in retail cement demand for regions like Andhra Pradesh, Telangana and Maharashtra due to water shortage which can adversely affect Q1FY17 earnings. It pegged PE at 19.8x FY17 and 16.4x FY18 estimated earnings. The Ramco Cements rose 5.62% to Rs 464.10 on Monday.



Citi Research has sell rating on Mindtree but increased its target price to Rs 685 citing that offshore realisation and margin challenges continue with YoY declines. The bro kerage said the company reported a quarter that was largely in-line with expecta tions. Mindtree rose 6.22% to Rs 731.35 on Monday.

Phillip Capital has buy rating on Tata Steel but has in creased its target price from Rs 330 to Rs 385. The brokerage said it revised its earnings estimates to factor in the Greybull deal and higher than estimated price hikes in India. It said the current price does not fully capture the company's efforts to de-le verage its balance sheet and profit improvement potential from the salerestructuring of its European business. It said EPS should increase by 22% for FY17 and 14% for FY18. At 8.7x FY17 and 6.2x FY18 estimated earnings, the valuations look attrac tive. Tata Steel rose 0.72% to Rs 335.00 on Monday.

SBI Cap Securities has a hold rating on Dalmia Bharat with target price of Rs 786. The brokerage said it anticipates a demand revival in the com pany's key markets. It said the company may accrue less benefits following the infra related turnaround in the ce ment demand. Consolidated debt remains a concern, it said and despite initiating re payments, the gross debt is unlikely to decline. However, a spurt in earnings could build a better cash chest and reduce the company's net debt. It pegged PE at 26.0x FY17 and 19.6x FY18 estimated earnings. Dalmia Bharat fell 0.17% to Rs 866.20 on Monday.

Motilal Oswal has buy rating on Bata India with a target price of Rs 576 citing 10% pre mium to long-period PE mul tiple of 27x rightly reflects strong consumer franchise and growth potential. Bata has evolved from a low growth, loss-making company to one that can deliver on all key parameters -growth, profitability and cash generation. The stock rose 1.35% to Rs 551.4 on Monday.