Five out of the top 10 stocks with the most sell ratings in the world are from India. This included two-wheeler major TVS Motor Company NSE 0.32 %, public sector lender Punjab National Bank (PNB), Royal Enfield maker Eicher Motors, paint major Berger Paints and state-owned engineering major Bharat Heavy Electricals NSE 1.56 % Limited.

                                  

Data collated by ET NOW shows that TVS Motor has now become the most 'sell' rated stock in the world, followed by German airline firm Lufthansa and PNB.

As many as 26 analysts have ‘sell’ rating on TVS Motor, while 8 analysts have ‘buy’ and a similar number of analysts have ‘hold’ rating on the stock. Analysts also believe that the stock may fall by 15 per cent from the present levels.

Already, shares of the auto major have declined 6 per cent to Rs 442.55 on a year-to-date basis. On the other hand, the benchmark BSE Sensex has slipped 2 per cent during the same period.

The data further revealed that Lufthansa has 24 ‘sell’ ratings with 1 ‘buy’ and 3 ‘hold’ calls. On the other hand, Punjab National Bank has 21 ‘sell’ calls and 2 ‘buy’ and 4 ‘hold’ ratings.

Denmark’s biotechnology company Novozymes has 19 ‘sell’, 2 ‘buy’ and 4 ‘hold’ recommendations, while AirAsia has 17 ‘sell’, 0 ‘buy’ and 3 ‘hold’ ratings.

Denmark’s biotechnology company Novozymes has 19 ‘sell’, 2 ‘buy’ and 4 ‘hold’ recommendations, while AirAsia has 17 ‘sell’, 0 ‘buy’ and 3 ‘hold’ ratings.

Eicher Motors and elevator and escalator firm Kone OYJ are the next in the list with 16 and 15 ‘sell’ recommendations. However, Eicher has higher buy calls (23) than it s sell rating. It also has 7 ‘hold’ recommendations.

Brokerage Elara Capital earlier this month gave a ‘sell’ rating to Eicher with a price target of Rs 1,728. “Royal Enfield continues to lose market share in September as its volume grew by a mere around 1 per cent YoY to 60,041 units (domestic volumes up 2 per cent YoY to 55,910 units) against the industry growth of around 13 per cent,” it said adding based on state-wise analysis of 2-wheeler industry volume, it assumes no market share gains for RE in the next couple of years.

Berger Paints and BHEL have 18 ‘sell’ recommendations and 2 ‘buy’ calls. However, BHEL also has 11 ‘hold’ calls, while Berger has 5. Deutsche Bank has 17 ‘sell’ and 13 ‘hold’ calls.

Barring Berger Paints (up 18 per cent YTD), BHEL, Eicher Motors and PNB declined between 2 per cent and 58 per cent in 2020 so far.

In terms of valuations, price-to-earnings (P/E) of Berger Paints is hovering at 100 times at present. While giving a  ‘sell’ rating to Berger Paints, HDFC Securities in September said, “Berger Paints remains a credible number 2 in paints. At 66 times Sept-22 P/E, risk-reward seems unfavorable.