Angel Broking on Ceat, Ranbaxy Labs

Ceat - Target of Rs 43

Angel Broking has recommended a buy rating on Ceat with a target price of Rs 43 in its November 21, 2008 research report. "The current global economic situation also hampers the possibility of large scale exports, though the global price is higher by Rs 22 per kg (Bangkok — Rs 87) than the price in the Indian market. But, there is no hurry in the industry, especially the tyre manufacturers, to stock rubber heavily. The Tyre industry strongly believes that the price would further decline and Rs 50 seems to be within reach. We recommend a Buy on CEAT with target price of Rs 43," says Angel's research report.

Ranbaxy Labs - Target of Rs 316

Angel Broking has maintained its buy rating on Ranbaxy Laboratories with a target of Rs 316 in its October 31, 2008 research report. "For the quarter, the company posted Net Sales of Rs 1,882 crore, registering a yoy growth of 14.7%. At current valuations, the stock trades at 15.6x CY2008E and 10.0x CY2009E earnings, a deep discount to its historical valuations."

"While the stock would remain lackluster in the near term, we believe that at current valuations, the stock discounts the concerns fairly well. Thus, we maintain our BUY recommendation on the stock with an 18-month revised SOTP Target Price of Rs 316 (Rs 410), wherein the core business is being valued at a P/Ex of 16x CY2009E core earnings (multiple lowered on back of lower visibility on the US business) giving it a fair value of Rs 218, Rs 24 for the non-core income and Rs 75 has been ascribed to NPV of the FTF opportunities available to the company," says Angel Broking's research report.