CLSA Flags Up to 31% Downside Risk in 14 Indian Stocks Including Paytm, JSW Steel & BHEL
CLSA has turned bearish on 14 Indian stocks and warned of potential downside of up to 31 per cent, maintaining its ‘Underperform’ ratings in a latest report. The brokerage set lower price targets for companies including One 97 Communications (Paytm), Hindustan Unilever (HUL), JSW Steel, Lodha Developers, JSW Energy, Asian Paints, Godrej Consumer Products (GCPL) and Dr Reddy’s Laboratories. Others flagged for weakness include BHEL, Marico, Bharat Forge, SBI Card, Oberoi Realty and Bharti Hexicom.
CLSA believes rising competition from D2C brands and modern retail formats is challenging HUL’s traditional distribution-led model, assigning a target price of ₹1,966. It also cited stretched valuations for JSW Steel, suggesting a target of ₹890 despite expected price improvements. Competitive pressures and fading festive demand are expected to weigh on Asian Paints’ growth and margins, while slowing growth and high valuations are seen as key concerns for Paytm and SBI Card.
In contrast, the brokerage also identified 13 stocks with potential returns of up to 58 per cent over the next 12 months, including Avenue Supermarts (DMart), DLF, Indus Towers, PFC, REC, ONGC, Tech Mahindra, UltraTech Cement and Persistent Systems. CLSA analysts highlighted strong growth metrics and sectoral tailwinds for companies like Eternal and NHPC, supported by exceptional earnings forecasts and renewable expansion.
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