Should you buy, sell or hold Tech Mahindra, Nykaa, MGL, oil stocks?

Brokerages have reviewed their ratings on a slew of stocks including Britannia, Mahanagar Gas, GAIL, Tech Mahindra and Nykaa as Dalal Street enters a holiday-truncated week. They are divided on Britannia Industries with a downgrade to ‘sell’ from ‘underperform’ by CLSA and a reiterated 'buy' by Nomura, and are positive on stocks such as ONGC, Oil India and Reliance after the government's latest action on the windfall tax.

Here's how the brokerages rate stocks such as Britannia, Tech Mahindra, GAIL, ONGC and MGL a day ahead of the Holi holiday: 

Britannia Industries

According to CLSA, high inflation in wheat and milk is likely to impact the Bengaluru-based FMCG company's margin. The brokerage has reduced its target price for the Britannia stock to Rs 4,060 from Rs 4,525.

Mahanagar Gas

Citi has retained a ‘buy’ rating on Mahanagar Gas with a target of Rs 1,030 per share. The gas distribution company has made its inorganic foray by acquiring a 100 per cent stake in Ashoka Buildcon arm Unison Enviro.

CLSA on oil & gas space 

CLSA has given a ‘buy’ rating on upstream companies such as ONGC, Oil India and Reliance.

The government has slashed the windfall profit tax on diesel exports to a record Re 0.5 per litre. It has removed the levy on jet fuel (ATF) and raised it marginally on domestically-produced crude oil.

GAIL 

Tech Mahindra

CLSA expects Tech Mahindra to report a weaker set of finanical results than peers for the quarter ending March 2023.

Nykaa

Macquarie has initiated coverage on Nykaa with an ‘underperform’ rating and a target price of Rs 115 per share.

According to the brokerage, the company faces a risk to the beauty segment margin as growth moves to smaller towns. In the fashion segment, experience from physical retail makes the brokerage cautious on the company’s owned brand focus and curation-led positioning.