Stock Views on Gateway Distriparks, Kirloskar Brothers, HEG, Gateway Distriparks

KRChoksey on Gateway Distriparks - Target Rs 97

KRChoksey Research has recommended a buy rating on Gateway Distriparks, with price target of Rs 97, in its report dated October 23, 2008. "The company remains cautious on the pricing outlook of its CFS business, amidst slowing container volumes. We expect the margins of its rail business to improve, as the impact of the price hikes would be seen in the subsequent quarters. The company is confident of maintaining healthy growth on the back of its robust expansion plan. At CMP of Rs 75, the stock is trading at 8.3x on FY09E EPS of Rs 9.0. We recommend a BUY on this stock with target price of Rs 97, which represents an upside potential of 29%," says KRChoksey's research report.

SKP Securities on HEG - Target of Rs 319

SKP Securities has maintained its buy rating on HEG, with price target of Rs 319, in its report dated October 31, 2008. "The demand for graphite electrodes has been increasing globally as well as domestically in the steel industry and HEGL being the leading graphite manufacturer in India will be able to take the advantage of the situation with its increased capacity. At the current level of Rs 135.25 and excluding the investment value, HEGL is trading at 2.74 x FY09E earnings and 1.74 x FY10E earnings of Rs 35.90 and Rs 56.58 respectively."

"We have valued the core business of the company at 5 x FY10E earnings, taking value of the stock to Rs 282.91 per share. The value of the company is further increased by Rs 37 per share by discounting HEGL's investment value in Bhilwara Energy Ltd. by 50%. We maintain our BUY recommendation on the stock with a target price of Rs 319 per share, upside potential of 137%," says SKP Securities' research report.

KRChoksey on Kirloskar Brothers - Target Rs 113

KRChoksey Research has recommended a buy rating on Kirloskar Brothers, with price target of Rs 113, in its report dated October 23, 2008. "At the CMP of Rs 80.5, the stock is trading at 7.7x FY08 EPS of Rs 10.4 and 7.6x FY09E EPS of Rs 10.6. We ‘Re-rate’ the stock and recommend a BUY with a target price of Rs 113, implying an upside potential of 40%. At the target price, the stock would be valued at 10.7x FY09E EPS of Rs 10.6," says KRChoksey's research report.