Emkay Global on Piramal Life, Bank of India, Deepak Fertilizers

Piramal Life - Target Rs 270

Emkay Global Financial Services has recommended a buy rating on Piramal Life Sciences with a target price of Rs 270 in its September 1, 2008 research report. “Piramal Life Sciences Limited (PLSL), the demerged R&D entity of Piramal Healthcare (PIHC) began operations a decade ago. PLSL today boasts of a world class drug discovery facility, a strong pipeline of 15 molecules (half of them in Phase I and Phase II) and in-licensing agreements with global innovator companies like Eli Lilly, Merck and Pierre Fabre Laboratories. Our risk adjusted DCF based NPV is Rs 270 per share. From the infrastructure view, the company is a value play. The replacement cost of its R&D facility is 50% of its current Enterprise Value (EV). PLSL trades at a significant discount to its only comparable competitor, SPARC. Despite having a stronger pipeline of 15 molecules as against 8 for SPARC, PLSL trades at a significant discount (80%) to SPARC's market cap. We initiate coverage on the stock with a buy rating and a DCF based target price of Rs 270,” says Emkay Global Financial Services' research report

Bank of India- Target Rs 340

Emkay Global Financial Services has recommended a buy rating on Bank of India with price target of Rs 340, in its report dated October 23, 2008. "Bank of India (BOI) has reported a net profit of Rs 7.6 billion for Q2FY09, far ahead of our expectations. The stock currently trades at valuations of 4.7 x FY10E EPS and 1.0x FY10E ABV, with an FY10 ROE of 24%. We maintain BUY rating on the stock with a price target of Rs 340," says Emkay Global Financial Services' report.

Deepak Fertilizers - Target Rs 64

Emkay Global Financial Services has recommended a buy rating on Deepak Fertilizers with price target of Rs 64, in its report dated October 24, 2008. "Deepak Fertilizers and Chemicals reported strong performance in Q2FY09 on back of higher margins in Chemicals Segment (up 550 bps yoy) and good performance in Fertilizer Segment (EBIT of Rs 95 million against loss of Rs 15 million). We maintain our BUY rating with 25% upside," says Emkay Global Financial Services' report.