But there are a few on which BNP analysts are fundamentally bearish, and near term
negative catalysts - in terms of inferior quarterly results - are clearly visible.
1 DLF: BNP property analyst Sandeep Mathew feels the stock is over valued at P/BV
of 2.3x on our FY11 estimate. Besides high gearing levels and lack of visibility of
cash flows exposes the stock to potential equity dilution, in our opinion.
2 Grasim Industries: Oversupply in cement will possibly take 2-3 quarters to narrow
down, and September quarter results for the sector may disappoint even compared
to the market's already beaten down expectation.
3 Onmobile: The concerns regarding order flows from international business still
persist.
4 UltraTech Cement: Pure-play cement company, hence even more exposed (than
Grasim) to potential cement price fluctuations (due to continuing over-supply).
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