Stock Views on City Union Bank, Reliance Communications, Rolta India, Tata Motors

Angel on Tata Motors - Target Rs 339





Angel Broking has maintained its buy rating on Tata Motors with a target price of Rs 339 in its November 24, 2008 research report. "Jaguar Land Rover (JLR) is in secret talks with the UK government for a £1-billion loan and an answer to the request would be made in the next fortnight, a media report said. Tata is looking to the government for a bridging loan to help it over the next 24 months, a period in which the industry will come under further financial pressure when it is difficult to access funding markets, the report added. The economic downturn has hit the auto industry hard and at present a number of large UK-based industrial groups are also considering asking the government for financial support."



"The market for JLR cars has fallen 25% around the world and this could further deteriorate in near term. JLR has already cut shifts and production days at Solihull, Halewood and Castle Bromwich. The Society of Motor Manufacturers and Traders, which is representing the interests of the wider British industry, is thought to want between £2 billion and £3 billion of state aid. Meanwhile, Toyota has also cut shifts at its UK plants, and Bentley, the luxury carmaker majority-owned by Volkswagen of Germany, has cut shifts at its plant in Crewe. We maintain Buy on Tata Motors with Target price of Rs 339," says Angel's research report.





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 24, 2008 research report. "Going forward, we believe that lending and deposits rates would further moderate and incidence of slippages due to higher interest rates would decline but due to lesser growth prospects across industries slippages would increase eventually increasing gross NPA."



"We estimate the bank's NIM for FY09 to drift down by 21 bps to 3.1%. We estimate that the bank's total business and bottomline would grow at 23% and 11% CAGR (during 2008-10) and the bank's book value and adjusted book value would be Rs 24 and Rs 22 respectively; we value the bank at 1.42x adjusted book value FY2010 at Rs 31. We re-iterate our BUY rating with a target price of Rs 31," says Karvy Stock Broking's research report.




Karvy on Rolta India - Target of Rs 220





Karvy Stock Broking has recommended a buy rating on Rolta India with a target of Rs 220 in its November 24, 2008 research report. "We do not expect the margins take any beating and are likely to stay at the current levels of 36%. Even after factoring M-to-M losses of Rs 900 million (as a result of FCCB) in FY09, the profits at the net level would modestly go down by 2.1%."





"The company is contemplating to reduce its foreign currency loans, and if it does reduces the same the company would be entitled reverse the M-to-M losses in FY10, which would give big boost to its earnings, even if the company writes off goodwill over the next 5 years. We have an BUY rating on the stock with a price target of Rs 220," says Karvy Stock Broking's research report.





Anand Rathi on Reliance Communications - Target of Rs 275





Anand Rathi Securities has recommended a buy rating on Reliance Communications with a target price of Rs 275 in its November 22, 2008 research report. "After two dismal quarters, RCOM’s operating performance is likely to show signs of recovery in the coming 1-2 quarters. With several sources of potential upside, the stock offers attractive ST reward/risk ratio. Buy, target of Rs 275," says Anand Rathi's research report.