Stocks to SELL: With the Q4 results season in full swing, several brokerages have released their analyses and issued SELL ratings on a number of stocks. This comes despite the fact that some companies have delivered strong performances, while others have reported slightly weaker-than-expected results.
A SELL call plays a crucial role in portfolio management. It helps investors protect their gains, manage downside risks, and avoid potential losses, especially in uncertain or mixed market conditions.
Here are three stocks that have received SELL recommendations from brokerages such as Goldman Sachs and Emkay:
Goldman Sachs expects 15 per cent downside
Hero MotoCorp is a two-wheeler and three-wheeler company and is part of the BSE 100, with a market capitalisation of Rs 1,01,685.62 crore.
According to Goldman Sachs, the brokerage has maintained a SELL call on the stock with a target price of Rs 4,300. This implies a downside of 15 per cent from current levels.
As of 1:25 pm, the stock was down 0.4 per cent, or Rs 17.9, trading at Rs 5,095.
The brokerage noted that the company’s Q4 performance was broadly in line with expectations, supported by a sequential improvement in average selling prices (ASP), driven by a richer product mix and price hikes.
However, Goldman Sachs remains cautious, highlighting key risks such as rising commodity inflation and potential supply chain disruptions.
The brokerage is also closely monitoring Hero MotoCorp’s outlook for FY27, particularly market share recovery and export growth trends, which could influence future performance.
Goldman Sachs maintains SELL
Dr Lal PathLabs is a diagnostics company and a component of the BSE 500.
Goldman Sachs has maintained its SELL rating on Dr Lal PathLabs, raising the target price slightly to Rs 1,300 from Rs 1,275. This reflects an 18.2 per cent downside potential for the stock.
As of 1:40 pm, the stock was up 3.3 per cent, or Rs 50.90, trading at Rs 1,587.60.
The brokerage highlighted that Q4 performance was strong, with sales and EBITDA growing 16.6 per cent and 10.5 per cent year-on-year, driven by robust patient footfall and higher sample volumes.
Additionally, the company’s management has guided for 13–15 per cent revenue growth in FY27 with stable margins.
Following the results and outlook, Goldman Sachs increased its FY27–FY29 estimates by 2–4 per cent. Despite the improved growth trajectory, the brokerage remains cautious on valuation, which continues to support its negative stance on the stock.
Emkay sees 16 per cent downside
As of 1:48 pm, the stock was trading 1.5 per cent, or Rs 65.5 higher, at Rs 4,424.55.
According to the brokerage, Q4 performance was healthy but largely in line with expectations, with EBITDA and PBT growing 23–25 per cent, supported by like-for-like (LFL) growth, faster store additions, and around 40 bps margin expansion. LFL gains were driven by approximately 5 per cent growth in average bill value.
The brokerage expects topline growth of 19 per cent in FY27, but higher allied costs may cap PAT growth at 16 per cent. Margin gains were supported by a better product mix and lower expenses, although partly offset by higher employee costs.
| Company | Brokerage | Stock Call | Target Price | Downside % |
| Hero MotoCorp | Goldman Sachs | SELL | Rs 4,300 | ~15% |
| Dr Lal PathLabs | Goldman Sachs | SELL | Rs 1,300 | ~18% |
| Avenue Supermarts | Emkay | SELL | Rs 3,700 | ~16% |
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
