Stocks to Sell: Brokerage Firms Recommend Selling Three Stocks

Stocks to Sell Now: In the domestic market today, there was a lot of volatility throughout the day. However, towards the end of the day, the equity benchmark indices BSE Sensex and Nifty 50 managed to close with gains. There was mixed movement among sectors, and brokerage firms have advised selling three individual stocks from different sectors, which could potentially see a significant drop from current levels.

1. India Cements (India Cements): India Cements is in the process of selling its non-core assets. It is reportedly planning to sell its subsidiary, UltraTech Cement, located near Vijayawada, Andhra Pradesh, for 70 crore rupees. In October 2022, the company had already sold its entire stake in JSW Cement for 477 crore rupees. According to ICICI Securities, despite moving in the right direction, India Cements will need to accelerate non-core asset sales to repay its high debt of around 2,900 crore rupees. Given its current level, the brokerage firm has maintained a “Sell” rating on the stock and set a target price of 122 rupees, which is nearly 48% below the current level. India Cements closed at 232.70 rupees on the BSE today.

2. NBCC (NBCC): NBCC is a Navratna company under the Ministry of Urban Development. In the first quarter of this fiscal year (April-June 2023), its revenue fell short of estimates and increased by 8.5%. This was due to a slowdown in the PMC (Project Management Consultancy) segment and a 51% annual basis decline in real estate sales. The company’s EBITDA margin also fell to 3.2% due to higher costs and other expenses.

3. Glenmark Pharma (Glenmark Pharma): Glenmark Pharma is selling a 75% stake in its API (Active Pharmaceutical Ingredient) unit, Glenmark Lifesciences, for approximately 5,650 crore rupees, with the unit being valued at 615 rupees. The sale will leave Glenmark Pharma with about a 7.8% stake in this unit. The proceeds from the sale will be used by the company to reduce its debt. According to ICICI Securities, while the burden of debt will be reduced, the long run will require Glenmark to bring about rapid acceleration in non-core asset sales, marketing costs for Ryaltris, and funds for the US generics business. In light of these factors, the brokerage firm has maintained its “Sell” rating on the stock and set a target price of 660 rupees, which is nearly 16% below the current level. Glenmark Pharma closed at 785.90 rupees on the BSE today.

Disclaimer: Please note that the above recommendations are based on the opinions of experts and brokerage firms. Users are advised to seek advice from certified experts before making any investment decisions.