Stock Views on Patni Computer Systems, Bharti Airtel, Dabur India, KS Oils

Indiabulls Sec on Patni Computer Systems - Target Rs 142

Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142 in its November 25, 2008 research report. "Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2’09, helped by the sharp depreciation of the rupee. respectively. The stock trades at a heavy discount to the industry average multiple of 7.9x and 7.2x for CY08 and CY09, respectively. Besides, based on our DCF valuation, we have arrived at a target price of Rs. 142, assuming an 8% Rf, a 5% terminal growth rate, and a 13.1% WACC. Our target price provides an upside of 20.3% over the current levels; thus, we upgrade our rating to Buy," says Indiabulls Securities' research report.

Angel on KS Oils - Target of Rs 52

Angel Broking has maintained its buy rating on KS Oils with a revised target price of Rs 52 in its November 26, 2008 research report. "KS Oils (KSO) has acquired a 500 metric tonnes per day (MTPD) port based refinery in Haldia Port in East India for Rs 125 crore. The plant which has a total refining capacity of 500MTPD with a vanaspati unit of 150MTPD is located within the Haldia Port with a direct pipeline access to ships. The acquisition will help the company in setting up a manufacturing base in Eastern India, which is one of its key markets. Moreover with this acquisition, KSO currently is using only the ports in western coast due to the presence of its existing plants in western and central India has access to eastern coast thereby reducing its geographic risks."

"The refinery is expected to give a boost to the company’s refined oils product strategy and will produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh. The acquisition is expected to facilitate logistics efficiencies and significantly reduce the time to market KSO’s products to its consumers in East India. We believe this acquisition will bring in incremental sales of Rs 180 crore and Rs 540 crore in FY2009 and FY2010 respectively. The net profit too is expected to increase by Rs 9 crore and Rs 27 crore during the same time periods. We believe this acquisition is EPS accretive and hence we maintain a Buy on the stock with a revised target price of Rs 52 (Rs 47)," says Angel's research report.

Angel on Dabur India - Target of Rs 80

Angel Broking has recommended an accumulate rating on Dabur India with a target price of Rs 80 in its November 24, 2008 research report. "Dabur India has acquired 72.15% of Fem Care Pharma Ltd (FCPL), a leading player in the women’s skin care products market, for Rs 204 crore in an all-cash deal. We believe the acquisition to be a positive move by Dabur, although at a slightly higher cost, as it brings to Dabur a portfolio of well-known household brands that enjoy a strong positioning in their respective categories, offering Dabur a strong platform to enter into newer product categories and markets since it was witnessing a slowdown in its core categories like Toothpaste, Hair Oils and Homecare."

"As with the previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, Fem too would offer substantial synergies for expanding the reach of Fem’s brands in all its geographies as well as better management of overall system costs. This provides Dabur an entry into the high-growth skin care market with an established brand name Fem with further potential to extend the brand into newer and related skin care categories. We recommend Accumulate rating on Dabur with a target price of Rs 80," says Angel's research report.

India Infoline on Bharti Airtel - Target of Rs 710

India Infoline has recommended a buy rating on Bharti Airtel with a stoploss of Rs 610 and target of Rs 710 in its November 25, 2008 research report. "In the short-term, we expect the current reversal in trend to continue. The daily RSI is also showing a sign of reversal, currently trading above 45. Short-term traders can buy the stock in the range of Rs 635-650 for a target of Rs 710. It is advisable to maintain a stop loss of Rs 610 on the long positions," says India Infoline's research report.