Stock picks: Check this 5 shares - Check these analyses

The share markets have been volatile for quite some time and taking a decision on investment in the right stocks is not so easy. Stock market today again ended in the red. The traders need to pick stocks which may give returns when the overall market is trading low. Here are the analyses from brokerages on five shares:

NMDC (BUY)
In a major relief for NMDC in Karnataka, the high court of the state has ruled that the state government does not have the statutory powers to enhance royalty and that only the central government can take a call thereupon. Brokerage Edelweiss said that it viewed the court ruling as positive as it facilitates resumption of production immediately after the monsoon. This should lift overall production by 6 percent. 

"We don’t rule out the possibility of the state government appealing the decision in the apex court. We estimate an FY20E EPS impact of about 6 percent. Maintain ‘BUY’ with a target price of Rs 135 (exit multiple 5.5x FY21E EBITDA)."

Wipro (SELL)
Brokerage HDFC Securities maintained SELL on Wipro, after weak 1QFY20 and tepid guidance for 2Q. Wipro’s revenue growth remained the lowest in tier-1 IT. "In view of growth challenges, peaking margins and taxation on buyback, we further cut our target multiple. Our target price of Rs 220 is based on 12x (vs. 14x earlier) Jun-21E EPS."

Mindtree (NEUTRAL) 
HDFC Securities said that Mindtree’s growth trajectory is expected to be lower following a stellar FY19 (year of revenue acceleration and margin expansion), as growth dichotomy between top account and residual business normalises. While Mindtree’s inherent business strengths of strong digital, marquee accounts and exposure to high growth verticals are in place, leadership transition and sub-optimal costs are near term risks. 

"We expect USD rev/EPS at 10/10% CAGR over FY19-22E and at current market price. Mindtree trades at 15.6x FY21E EPS which bake in reasonable margin uptick in FY21E. We maintain NEUTRAL on Mindtree following a weak 1QFY20. Our target price of Rs 705 implies 14x Jun-21E EPS (vs. 16x earlier)."

MCX (BUY):
HDFC Securities maintains BUY on MCX based on in-line 1QFY20. The company has maintained market share despite increasing competition. Embedded non-linearity and cost control is leading to margin expansion. Regulatory tailwinds will boost volumes further. "We assign 30x to core FY21E PAT and add net cash to arrive at SoTP of Rs 962 (13% upside)."

Hindalco (BUY):
Brokerage Edelweiss maintains ‘BUY’ on Hindalco with a target price of Rs 130.