PINC Research on Triveni Engineering, Deepak Fertilizers, Time Techno

Triveni Engineering - Target of Rs 45
PINC Research has upgraded its rating on Triveni Engineering to buy with a target of Rs 45 in its November 21, 2008 research report. "Triveni Engineering and Industries Ltd. (TEIL) reported a YoY growth of 41% in net sales to Rs 4.3 billion for Q4FY08. Net profits surged by 5.4x to Rs 270 million. Although we expect the profitability to be impacted by higher cane price, we believe the same would be partially compensated by liquidation of low cost sugar of SS 07-08 and better distillery product prices. Hence, we upgrade our recommendation to ‘BUY’ with a price target of Rs 45 (valuing at 6.5x) on a one year investment perspective," says PINC's research report.

Deepak Fertilizers - Target Rs 80

PINC Research has recommended a buy rating on Deepak Fertilizers, with price target of Rs 80, in its report dated November 7, 2008. "Deepak Fertilisers and Petrochemicals Corporation (DFPCL) posted net sales of Rs 3.8 billion in Q2FY09 (+ 67% YoY). Revenues from chemical segment jumped by 63% to Rs 2.5 billion due to price & volumes increase in AN (Ammonium Nitrate) and fertilisers along with increased trading revenues. Sales of manufactured fertiliser surged by 4x to Rs 586 million pushing fertiliser sales up by 71% to Rs 1.2 billion. Consequently, net profit surged by 91% to Rs 418 million."

"At the CMP of Rs 59, DFPCL is trading at a P/E of 3.7x, EV/Sales of 0.6x and EV/EBIDT of 2.6x discounting its FY10 estimates. Spike in chemical prices, favorable fertiliser policy and expected increase in availability of gas augurs well for DFPCL. Accordingly, we expect higher sales volumes of methanol and fertilisers in FY10. With the recent correction in its stock price, DFPCL is available at attractive valuations. Hence we revise our recommendation upwards to ‘BUY’ with a target price of Rs 80 on a time horizon of 6-12 months. Our target price implies a PE of 5x FY10E earnings," says PINC's research report.

Time Techno - Target of Rs 50

PINC Research has maintained its buy rating on Time Technoplast with a target of Rs 50 in its November 21, 2008 research report. "We have moderated our outlook primarily due to the deteriorating economic conditions. Even though feedstock prices continue to ease, we believe the bigger threat to earnings is from lower offtake from the auto sector. We remain confident of the company’s ability to sustain margins in the 19-20% band and maintain our ‘BUY’ recommendation, but have revised downwards our price target to Rs 50 to reflect the lower earnings," says PINC's research report.