KRChoksey views on Hindustan Zinc, Nava Bharat Ventures, Sanwaria Agro Oils

Sanwaria Agro Oils - Target of Rs 45

KRChoksey has recommended a buy rating on Sanwaria Agro Oils with a target of Rs 45 in its report. The geographical benefits which the company enjoys on account of all its plants being located in the state of MP (largest producer of soybean seeds) is a key advantage over its peers. Further, SAOL will benefit from setting up of wind turbine generators which will bring down the operating cost and thus enhance margins by 230bps. We expect the profit margins to improve going forward as interest rates cool down."

"At CMP of Rs 32, the stock is trading at 6.4x FY08 earnings of Rs 4.98. We recommend a “BUY” rating on the stock with a price target of Rs 45 based on our P/E valuation, with an upside potential of 41% from current levels. At the target price, the stock would be valued at 6.6x FY09 EPS of 6.8," says KRChoksey's research report.

Nava Bharat Ventures - Target of Rs 247

KRChoksey Research has maintained its buy rating on Nava Bharat Ventures with a target price of Rs 247 in its November 7, 2008 research report. "Net sales surged by 157.0%(YoY) to Rs 398.3 crore in Q2FY09 against Rs 151.3 crore in Q2FY08. On back of company’s diversified business model, power business initiatives, substantial land value holding at Hyderabad & Secundrabad and improving sugar prices, we maintain our BUY rating on the stock with the target price of Rs 247. Though we are cautious of ferro alloys business slow down, but we believe the concerns are already been discounted heavily in the stock prices," says KRChoksey's research report.

Hindustan Zinc - Target of Rs 504

KRChoksey Research has recommended a buy rating on Hindustan Zinc with a target price of Rs 504 in its November 7, 2008 research report. "Net sales of the company declined from Rs 1,984.0 crore to Rs 1,790.5 crore; negative growth of 9.8% (y-o-y). We recommend a BUY on the stock with a target price of Rs 504," says KRChoksey's research report.