Stock Vies on City Union Bank, Kesoram Inds, BHEL

Karvy on City Union Bank - Target of Rs 31

Karvy Stock Broking has maintained its buy rating on City Union Bank with a target of Rs 31 in its November 14, 2008 research report. "In 2QFY09, City Union Bank reported 26% growth (Y/Y) in net interest income to Rs 643 million. The bank's total business grew by 27% (Y/Y) to Rs 118 billion on the back of 28% growth in advances to Rs 49 billion and 27% growth in deposits to Rs 69 billion."

"In the quarterly result, robust growth in NII, stagnancy in CASA share and contained NPA levels were the key positives but the marginal decline in CXB income was slight dampener. Overall the quarterly result was marginally better than our expectations; we maintain our BUY rating with a target price of Rs 31," says Karvy Stock Broking's research report.

Motilal Oswal on Kesoram Industries

Motilal Oswal has maintained its buy rating on Kesoram Industries in its November 10, 2008 research report. "Cement business would benefit from the ongoing capacity addition (1.6mt), which would commission by Dec’08. Tyre business would benefit from Greenfield capacity at Uttarakhand, and would enjoy fiscal incentives, thereby driving volume growth and margin expansion. Also, softening rubber prices would also enhance profitability."

"We have revised our earnings estimate downwards by 6% for FY09E to Rs 75.9 and 15.8% for FY10E to Rs 68.6. Valuation at 1.8x FY09E EPS and 3.2x EV/EBITDA are very attractive and doesn’t fully reflect the upside of the capex being undertaken. Maintain Buy," says Motilal Oswal's research report.

Emkay Global on BHEL - Target of Rs 1520

Emkay Global Financial Services has maintained its buy rating on Bharat Heavy Electricals (BHEL) with a target of Rs 1520 in its November 12, 2008 research report. "Over the recent past BHEL stock has outperformed significantly. It outperformed Sensex by 22.1% over past 3 months and 12.3% over past 1 month. Similarly it has outperformed BSE Capital goods index by 20.2% over past 3 months and by 10.7% over past 1 month. Decent Q1 and Q2FY2009 numbers and significant drop in commodity prices can be attributed to this performance."

"Our earnings estimate for BHEL stands at Rs 73 for FY2009 and Rs 94 for FY2010. The stock trades at 18.7X its FY2009 and 14.6X its FY2010 earnings. Over a longer term we remain positive on BHEL and maintain our BUY with price target of Rs 1520. However we believe that near term order slowdown will impact stock performance," says Emkay Global Financial Services' research report.