Stock Views on Sintex India, Shiv Vani Oil, Petron Engineering Construction

Hem Securities on Sintex India - Target of Rs 314

Hem Securities is bullish on Sintex India and has recommended buy rating on the stock with a target of Rs 314, in its November 11, 2008 research report. “Sintex Industries’ consistent performance in both top line and bottom line, vig-orous growth in order book and it’s recent acquisitions show phenomenal growth in the company’s financials. Due to its ability to quickly deliver affordable housing projects, the company has secured a strong order book of Rs. 14 billion for monolithic construction which will be executed over 1-2 years. The company has got approval from 16 states for its prefab business which is the biggest entry barrier for any new entrant. So, the company is shifting its focus from textiles to plastic division to grab the growing opportunities and thereby continue on its growth trajectory. Therefore, the company’s revenue which is coming from 3-4 segments shall provide a hedge against cyclicality of its operations.”

“The stock at the current market price of Rs 218 will trade 11.24 times to its earnings of Rs 19.38 (TTM) and 1.97 times to its book value of Rs. 110.74 and is expected to provide huge upside potential in medium term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 314 in the medium term investment horizon with an appreciation of approximately 44%,” says Hem Securities' research report.

Nirmal Bang on Shiv Vani Oil - Target of Rs 544

Nirmal Bang has maintained its buy rating on Shiv Vani Oil & Gas Exploration Services with a revised target price of Rs 544.1 in its November 5, 2008 research report. "Shiv Vani Oil registered strong top line growth of 92.4% y-o-y to Rs 187.2 crore for 2Q 09. We reiterate our BUY rating on Shiv Vani Oil. However, we are revising the target price to Rs 544.1 based on our FY10 earnings to factor in the slowdown of the economy in general and sector in particular," says Nirmal Bang's research report.

Nirmal Bang on Petron Engineering Construction

Nirmal Bang has recommended a buy rating on Petron Engineering Construction in its November 5, 2008 research report. "The company reported a Net Sales of Rs 118.6 crore in Q2 FY 09 as against Rs 65.02 crore in Q2 FY 08 an increase of 82.4% on YoY basis and Rs 94.49 crore in Q1 FY 09 an increase of 25.5% QoQ basis. We expect the company to achieve Net Sales of Rs 456.38 crore and Rs 684.57 crore, EBIDTA of Rs 45.49 crore and Rs 69.68 crore, Adj. PAT of Rs 17.92 crore and Rs 27.57 crore for FY 09 and FY 10 respectively. At projected EPS of Rs 16.99 for FY 09 and Rs 26.01 FY 10 the stock is trading at Price Earning Multiple of 8.3x and 5.4x respectively. Buy," says Nirmal Bang's research report.