Godawari Power, Country Club, Idea Cellular

Karvy Stock Broking on Godawari Power - Target of Rs 260

Karvy Stock Broking has maintained its buy rating on Godawari Power & Ispat with a target of Rs 260 in its September 26, 2008 research report. "Godawari Power & Ispat (GPIL) has recently announced its plan for setting up 1000 MW thermal power plant in Chhattisgarh. Godawari Power Ltd, a subsidiary of GPIL signed a Memorandum of Understanding (MoU) with the Government of Chhattisgarh. We continue to be positive on the stock backed by likely to net profit growth of 31% (CAGR) on net sales CAGR of 37% during FY08-10E."

"At the current price, the stock is trading at 3.3x FY09E and 2.5x FY10E earnings. GPIL is available at an EV/EBIDTA of 3.4x FY09E and 2.7xFY10E. It is trading at 0.8x FY09E BV and 0.6x FY10E BV. As it is available below its current year (FY09) BV, we reiterate our BUY rating on GPIL with a price target of Rs 260 per share," says Karvy Stock Broking's research report.

Prabhudas Lilladher on Country Club - Target of Rs 797

Prabhudas Lilladher has maintained its buy rating on Country Club (India) (CCIL) with a target of Rs 797 in its September 20, 2008 research report. "CCIL’s aggressive expansion plans in terms of acquiring properties and offering comprehensive range of products to its clients has helped the company to grow at CAGR of 210.8% over last three years to Rs 3.18 billion in FY08. At the CMP of Rs 270, the stock trades at 4.5x FY09E and 2.7x FY10E earnings."

"We believe that CCIL should trade at a premium to the current valuations, given its strong revenue and profit growth. We maintain BUY rating on the stock with a target price of Rs 797 (8x FY10E)," says Prabhudas Lilladher's research report.

Prabhudas Lilladher on Idea Cellular - Target of Rs 94

Prabhudas Lilladher has initiated an accumulate rating on Idea Cellular with a target of Rs 94 in its September 19, 2008 research report. " We initiate coverage on Idea cellular with an accumulate rating and a DCF based target price of Rs 94 (WACC=13%, Terminal growth rate=3%). Idea cellular is in the early stage of wireless coverage and at least 3-4 years away from attaining maturity. Further, new rollouts are currently gestation businesses (with around 10-12 quarters away from breaking even). Hence, we have used DCF as our prime tool to capture the true potential of the business," says Prabhudas Lilladher research report.