LKP Shares views on Aries Agro, Shanthi Gears

Aries Agro - Target of Rs 75



LKP Shares has recommended a buy rating on Aries Agro with one-year target of Rs 75 in its research report. "Aries posted a 23% drop in net profit during H1-FY'09. We recommend a BUY on Aries Agro Ltd based on an expected 65% CAGR growth in net profits over the next two years, which would be driven by a 42% growth in revenues during the same period. Given the positioning of the company in the India centric rural domain of micronutrients with a presence across all states we remain bullish on Aries trading at 2xFY'10E and 1.3xFY'11E earnings. BUY with a one-year price target of Rs 75," says LKP Shares' research report.


Shanthi Gears - Target of Rs 56



LKP Shares has recommended a buy rating on Shanthi Gears with an one-year price target of Rs 56 in its research report. "H1FY'09 results of SGL were below expectations on the revenue front clearly reflecting the slowdown in core sector demand during the second quarter. However SGL has been able to maintain profitability due to reduction in material costs and better product mix towards customized gears. Given the strong balance sheet and virtually debt-free status we believe that SGL trading at 6xFY'10E is a good investment bet and we recommend a BUY with a one-year price target of Rs 56," says LKP Shares' research report.