Stock Views on Marico, Union Bank, Akruti City

KRChoksey on Marico - Target Rs 64

KRChoksey has recommended a buy rating on Marico with target of Rs 64 in its report on October 22, 2008. "Marico’s net sales increased 30.1% Y-o-Y to Rs 603.5 crore in Q2FY09 as against Rs 463.8 crore during Q2Y08. EBITDA of the company registered a growth of 14.1% Y-o-Y to 73.9 crore & PAT rose by 11.6% Y-o-Y to Rs 47.1 crore. The second half of FY09 is expected to present significant challenges in the domestic consumer products business, though the long term fundamentals of the company remains strong. At CMP of Rs 53.3, the stock is trading at 18.5x on FY09E EPS of Rs 2.8. We recommend a BUY on this stock with target price of Rs 64.0, which represents an upside potential of 20.0%," says KRChoksey's research report.

Emkay Global on Union Bank - Target of Rs 200

Emkay Global Financial Services has maintained its buy rating on Union Bank of India with a target of Rs 200 in its November 3, 2008 research report. "Union Bank of India’s (UBI) reported net profit of Rs 3.6 billion for Q2FY09. The operating performance for Q2FY09 was much stronger than we expected with 48.6% growth in NII and 47% growth in fee income. The improving asset quality and strong cost/asset ratios remain positives for the bank."

"We have upgraded our earnings estimates for the bank by 10% each for FY09 and FY10. We continue to maintain it as one of our top picks. The stock is currently trading at 0.9x FY10E ABV and 3.9x FY10E FDPER. We maintain our BUY recommendation on the stock with price target of Rs 200," says Emkay Global Financial Services' research report.

HDFC Securities on Akruti City

HDFC Securities has recommended a buy rating on Akruti City in its report dated November 12, 2008. "Akruti’s revenues and EBITDA grew by 5%and 9% respectively on account of an increase in other income (including income from JVs). Akruti had EBITDA margins of 98% and PAT margins of 78% in Q2 FY09 due to its high mix of commercial projects (49% of land bank) and very little presence in the residential segment (10% of land bank) as compared to other players. Akruti City, with its land bank in these areas, is in a position to tap this market. Given the visibility in project execution, its diverse land bank and strong presence in SRA schemes, we recommend a BUY on the stock," says HDFC Securities' research report.