Home / Business and Economy / Jefferies Flags Downside Risk on Key Indian Stocks
Jefferies Flags Downside Risk on Key Indian Stocks
10 Feb
Summary
- Jefferies downgraded BSE, Mahanagar Gas, and Ramco Cements.
- Mahanagar Gas faces an 18% potential downside with a Rs 950 target.
- Ramco Cements sees a 10% downside risk with a Rs 1,045 target price.
Jefferies has adopted a cautious outlook on several Indian equities, downgrading BSE, Mahanagar Gas, and Ramco Cements. The brokerage firm has issued 'Hold' or 'Underperform' ratings for these companies, citing various risks. For BSE, a 'Hold' rating was maintained with a target price implying a 5% upside, though future growth challenges and rising costs were noted.
Mahanagar Gas received an 'Underperform' rating and a target price suggesting an 18% potential downside. Concerns include slowing volume growth and expected decreases in return on capital employed, despite initial margin beats. Ramco Cements retains a 'Hold' rating with a target price indicating a 10% downside risk.
This assessment by Jefferies highlights weaker volumes and pricing pressures for Ramco Cements, particularly in southern markets. Despite capacity expansion plans, execution risks and limited earnings visibility contribute to the cautious stance. The brokerage's updated ratings suggest investors should be wary of these stocks in the near term.
