Worried about mixed earnings? Here are 5 stocks to beat Q3 blues

This earnings season, the market has loved companies which have reported strong growth while punishing those which have not. Experts have termed the earnings season a mixed bag so far, as toplines disappointed and bottom-line showed muted growth. “Overall, the prognosis is not good.

Earnings have been middling, not great as per expectations. They were below expectation in a few large counters and that leads to a mix of poor expectations from the market,” said Ajay Bagga, market expert.

Here is a list of five stock ideas from different brokerages, which came out with these recommendations in separate notes to their clients after the December quarter results:

SHREE CEMENT: Investment bank Bank of America-Meryll Lynch has maintained a buy rating on the stock with a target price of Rs 12,318. “The company has reported a strong performance despite weak overall pricing trends,” the investment bank said. It has seen its Ebitda growth driven primarily by a 24% surge in volumes and saving in power and transmission costs. “Margins expanded despite a 1.7% YoY & 3.4% QoQ decline in average cement price. Weak pricing trends to be negated by higher volumes and extended power cost benefits,” BofA-ML said.

TAKE: Buy rating with target price of Rs 12,318

BAJAJ FINSERV: Kotak Institutional Services has raised its target price for the stock to Rs 1,965 from Rs 1,810 per share. “Bajaj Life continued to report APE decline. Meanwhile, Bajaj General’s combined ratio increased to 109% from 99% QoQ,” the brokerage said. The rise in the ratio is due to large losses from Chennai floods, it said.

TAKE: Target price raised to Rs 1,965

DLF: Brokerage firm Motilal Oswal Securities maintains a buy rating on the stock with a target price of Rs 120. The management targets to launch Capital Green phases (Delhi) in FY17. Leasing momentum was better, with 0.5 million square feet (msf) of net leasing (0.6 msf in 9MFY16 v/s guidance of 1-1.5 msf). With Noida Mall commencing, rentals should reach Rs 27 crore (annualised) by March 2016,” MOSL said.

TAKE:Buy rating at target price of Rs 120

SKIPPER: MOSL has retained its buy rating on the stock with a target price of Rs 205. "Revenue growth at 15% was muted on account of lower than expected growth in PVC pipes which faces headwinds from falling commodity prices, lower than estimated shipments in engineering products and drop in the now immaterial Infrastructure space," the brokerage said.It expects the PVC pipes business to continue providing strong support while cautioning investors to expect margins to decline.

TAKE:Buy rating at target price of Rs 205.

DISH TV: Brokerage house CLSA has maintained a buy rating on the stock with a revised target price of Rs 110. CLSA expects Dish TV to deliver a 14% Ebitda compounded annual growth rate (CAGR) over FY16-18. Post the company's Q3 earnings, the brokerage has upgraded FY16-17CL earnings by 2-37% to factor in margin beat.

TAKE: Buy rating at target price of Rs 110.

(Views given are the analysts' own and do not represent those of EconomicTimes.com)