Stock Views on Wipro, IVRCL Infrastructure, Syndicate Bank, Tech Mahindra

Anand Rathi on Wipro - Target of Rs 325


Anand Rathi Securities has recommended a buy rating on Wipro with a target price of Rs 325 in its November 17, 2008 research report. "Wipro has built considerable scale in the IMS space (largest practice among Indian IT companies) and has been able to build on the leads. Wipro has undertaken several initiatives, such as hiring at a slower pace and focusing on internal processes, which have resulted in revenue growth overtaking volume growth. Wipro trades at 9.6x FY09 and 10.8x FY10 estimated earnings."


"We rate it a Buy with a target price of Rs 325 at a target PE multiple of 11.8x its one-year forward earnings. At our target price, the stock would trade at 7.6x EV/EBITDA our one-year forward estimates. Our DCF valuation for Wipro assumes an 8.5% risk-free rate, a 6% risk premium and a 3% terminal growth rate. The DCF-based fair value, after taking estimated growth till FY10 and 11% growth during FY10-15, is Rs 320," says Anand Rathi's research report.


KRChoksey on IVRCL Infra - Target of Rs 198


KRChoksey Research has recommended a buy rating on IVRCL Infrastructure, with price target of Rs 198, in its report. "At the CMP of Rs 140, IVRCL is trading at 7.8x TTM EPS of Rs 17.8 and 8.8x FY09E EPS of Rs 15.6. We anticipate slowdown in order inflow and an increase in interest expense, which will impact the revenue and net profit margins of the company. We have reduced our EPS estimates for FY09 and FY10 by 10% & 9.8% respectively. We therefore downgrade our target price from Rs 381 to Rs 198, maintaining a BUY rating, with an upside potential of 41.4%," says KRChoksey's research report.


Karvy on Syndicate Bank - Target of Rs 71


Karvy Stock Broking has maintained its buy rating on Syndicate Bank with a target of Rs 71 in its November 17, 2008 research report. "In 2QFY09, Syndicate Bank's net interest income grew by 53% (Y/Y) to Rs 7.5 billion. Overall the bank posted good set of numbers; we re-iterate our BUY rating on the stock with a target price of Rs 71," says Karvy Stock Broking's research report.


Anand Rathi on Tech Mahindra - Target of Rs 430


Anand Rathi Securities has recommended a buy rating on Tech Mahindra with a target price of Rs 430 in its November 17, 2008 research report. "We initiate coverage on Tech Mahindra with a Buy and a target price of Rs 430. We expect its domain expertise (telecom), revenue visibility and robust cash flow performance to drive revenue CAGR of 16.4% over FY08-11," says Anand Rathi's research report.