Indiabulls Securities views on State Bank of India, NTPC

State Bank of India - Target Rs 1,541


Indiabulls Securities Research has upgraded its rating on State Bank of India (SBI) to buy in its November 10, 2008 research report. "State Bank of India’s operating profit and net profit for Q2’09 surged 54.5% and 40.2% yoy, respectively, exhibiting a strong performance. While we expect the economic slowdown to adversely impact the Bank’s performance in the near-to-medium term, we believe that most of the negatives have been factored in the current price. Our fair value estimate is Rs 1,541. We, therefore, upgrade our rating to BUY," says Indiabulls Securities' research report.


NTPC - Target of Rs 194


Indiabulls Securities Research has upgraded its rating on NTPC to buy with a target of Rs 194 in its November 11, 2008 research report. "NTPC clocked revenues to the tune of Rs 96.6 billion for Q2’09. Net profit for the quarter increased 9.6% yoy to Rs 21.1 billion. After the recent correction, we believe NTPC’s stock should prove to be a good buy. Based on our DCF valuation, we have arrived at a target price of Rs 194, assuming a terminal growth rate of 5% and a WACC of 10.5%. Since our target price implies an upside of 28% from the CMP, we upgrade our rating to Buy," says Indiabulls Securities' research report.