Stock Views on Pidilite Industries, Welspun Gujarat, Jindal Saw

SKP Securities on Pidilite Industries - Target of Rs 195

SKP Securities has recommended a buy rating on Pidilite Industries with 18 months price target of Rs 195 in its September 27, 2008 research report. "At the current level of Rs 135, Pidilite is trading at the P/E of 15.48x, 12.02x and 10.14x of FY09E, FY10E and FY11E earnings of Rs 9, Rs 11 and Rs 13 respectively. Considering the strong brand value and steady growth we initiate coverage on Pidilite with 18 months price target of Rs 195 (44% upside) which discounts FY11E earnings by 15x, Buy," says SKP Securities' research report.

HDFC Securities on Welspun Gujarat - Target of Rs 592

HDFC Securities has maintained its buy rating on Welspun Gujarat Stahl Roh with a revised target of Rs 592 in its September 30, 2008 research report. "On a relative value basis, the stock is currently trading at 7.2x and 4.6x its expected FY09E and FY10x earnings. We expect it to re-rate positively and when coupled with the underlying earnings growth, should deliver significant out performance to investors in the long term."

"We therefore maintain our Strong BUY recommendation on the stock with a revised target price of Rs 592 (upside of 159%) from the earlier target of Rs 774 (Downward revision of 24%). This downward price target is partially due to our revised earnings estimates and also due to the derating in P/E multiple of the company and the market," says HDFC Securities' research report.

HDFC Securities on Jindal Saw - Target of Rs 987

HDFC Securities has given target of Rs 987 for Jindal Saw in its September 18, 2008 research report. "Going forward, the company has embarked upon an aggressive capex plan in the pipe space. It also plans to invest in new unrelated businesses (shipyard, Infrastructure etc), which remains a concern to us. The stock currently trades at a P/E multiple of 10.3x CY08E and 7.3x CY09E, with marginal downward revision of our estimates for CY08E and CY09E. We are revising our price target to Rs. 987 (Upside of 67%) from earlier price target of Rs.1050 (Downward revision of 6%). We expect the stock to re-rate positively once its expanded capacities come on stream and start contributing to profits," says HDFC Securities' reports.