Motilal Oswal and Prabhudas Lilladher, two prominent brokerage firms, have issued “sell” and “reduce” calls on two financially strong stocks, Fine Organic Industries and Tech Mahindra, despite their recent performance.
1. Sell Fine Organic Industries:
- Current Price: ₹5082.15 (BSE)
- 52-Week High: ₹5950.00 (as of 30/07/2024)
- 52-Week Low: ₹4005.00 (as of 28/03/2023)
- Market Capitalization: ₹15,581.86 crore
- Performance:
- Down 4% in the last 3 months, but up 16% in the last 6 months.
- Increased by 4% in the last year but down over 25% in the past 2 years.
- Delivered 199% returns over the last 5 years.
- Recommendation: Sell by Motilal Oswal, with a target price of ₹4095 per share.
- Recent Financials: Fine Organic’s net profit increased by 13.51% to ₹113.25 crore for the quarter ending June 2024, up from ₹99.77 crore in the corresponding period last year.
2. Reduce Tech Mahindra:
- Current Price: ₹1645.75 (BSE), with an intraday gain of 1.57%.
- 52-Week High: ₹1674.00 (as of 10/10/2024)
- 52-Week Low: ₹1089.00 (as of 26/10/2023)
- Market Capitalization: ₹1,61,011.88 crore
- Performance:
- Tech Mahindra’s shares soared 30% in the last 6 months and have risen 26% in 2024 so far.
- Over the past 5 years, the stock has grown by 128%.
- Recommendation: Reduce by Prabhudas Lilladher, with a target price of ₹1340 per share.
- Recent Financials: The company posted a 23% year-on-year rise in net profit to ₹851.5 crore for Q1 FY2024-25, showing a 29% sequential increase.
- Upcoming Event: Tech Mahindra’s Board meeting on October 19, 2024, to approve financial results.
Both stocks have shown strong long-term performance, but the analysts have issued cautious guidance based on valuation and growth concerns.
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