Stock Views on Deepak Fertilizer, Piramal Healthcare, Reliance Comm

Prabhudas Lilladher on Deepak Fertilizer - Target of Rs 80

Prabhudas Lilladher has recommended an accumulate rating on Deepak Fertilizers and Petrochemicals Coprn with a target price of Rs 80 in its research report. "In Q3FY09, prices in the industrial chemical segments have fallen by 15- 20% except Isopropyl Alcohol (IPA), where price has dipped by 40% QoQ. Southward industrial chemical prices have been set-off by the fallen raw material prices. Hence, margins are sustainable. During the quarter, methanol price has been dipped by 50%. Hence, DFPCL has traded in Q3FY09 with negligible amount of manufacturing. We recommend “Accumulate” the stock with target price of Rs 80," says Prabhudas Lilladher's research report.

Sharekhan on Piramal Healthcare - Target of Rs 434

Sharekhan has maintained its buy rating on Piramal Healthcare with a target of Rs 434 in its research report. "Piramal Healthcare (Piramal) has announced the acquisition of US-based Minrad International, Inc. (Minrad) by way of a definitive merger agreement signed between the two companies. With strong global relationships, world-class infrastructure and proven capabilities in research, Piramal is one of the best plays in the contract research and manufacturing segment. Further, its strong presence in the domestic market provides a solid bedrock for its other business initiatives."

"With the strong traction expected across businesses, we maintain our positive outlook on Piramal. We maintain our Buy recommendation on the stock with a price target of Rs 434," says Sharekhan's research report


Indiabulls Securities on Reliance Comm - Target of Rs 324


Indiabulls Securities Research has upgraded its rating on Reliance Communications to buy with a target price of Rs 324 in its research report. "Reliance Communications Ltd. (RCOM)’s net sales grew 5.9% qoq to Rs 55.4 billion on the back of healthier global revenues and better operational metrics (MOU and ARR) in the mobile services. We have valued RCOM by using SOTP and have arrived at a target price of Rs 324."

"Our target price implies an 11xFY10E EPS, reflecting a nearly 42% discount to our valuation for Bharti (target price of Rs 1,056). Although we believe that RCOM will continue to trade at a discount to Bharti due to the latter’s above-average financial metrics (2-year EPS CAGR of 24%, ROE of 32%), the current discounts are steeper-than-warranted. Based on a 50% upside to our valuation, we upgrade our rating on the stock to Buy," says Indiabulls Securities' research report.