Sell ​​Alert: Sell alert in shares of IndusInd Bank, Tech M and Nykaa, brokerage said it is better to sell – Market

The bank’s growth is expected to remain under pressure in the near term due to reduction in write offs and wholesale lending in microfinance. The bank aims to deliver RoA of around 1% by FY27 and 1.5% in the long run, with a slight improvement in net interest margin also expected. Citi believes that these improvements will be visible only gradually.

Asset quality is expected to improve and the downside may come down to 0.6–0.7% in the next 2–3 quarters. Still, the path of recovery seems to be slow, hence there is a need to be cautious at the moment.

Rating : Sell

Target price: Rs 1,260

Current price: Rs 1,400

Brokerage house CITI has advised sell in Tech Mahindra and has increased the target price to Rs 1,260. In the case of the company, the concern is more related to macro factors. The brokerage says declines have happened before, but concerns over fundamentals are still not fully resolved.

This IT sector company is still facing the uncertainty of weak global demand and rapidly changing AI-related changes. Due to these reasons, new projects and profits may be affected, due to which there is no clear picture regarding growth in the coming time.

Also, no strong positive trigger is visible and there is an atmosphere of caution in the entire IT sector. In such a situation, the risk in this stock appears to be high and the returns are low.

Fsn E-commerce Ventures (Nykaa)

Rating : Sell

Target price: Rs 205

Current price: Rs 245

Brokerage house HDFC Securities has given a target of Rs 205 while advising to sell in Nykaa. Expectations from the company are very high, but the risks are also not less. Nykaa’s share price is based on the expectation that everything will be “perfect”. If even a small mistake occurs, investors may suffer losses.

The company’s beauty and personal care business is doing well, but a major part of its success rests on just one brand (own brands). Analysts fear that if the shine of that one brand diminishes, the entire growth may stop.

Now Nykaa is selling its own brands on other platforms as well. This is increasing sales, but people are coming to Nykaa’s own app less, which is not good in the long run. The company’s profits have increased, but the cost of adding new customers is still a big challenge.

Disclaimer: The advice to invest in the stocks given here is given by the brokerage house. These are not the personal views of ET NOW Swadesh. ET NOW Swadesh suggests its readers and viewers to consult their financial advisors before taking any money related decisions.