Stock Views on Emco, Bharat Forge, Apollo Tyres

Sharekhan on Apollo Tyres - Target of Rs 45

Sharekhan has maintained its buy rating on Apollo Tyres with a target of Rs 45 in its research report. "The company’s performance may get affected by the demand slowdown and fluctuating raw material prices, but in the long run, the company is likely to benefit from the strong growth opportunities and its leadership position in the market. At the current market price of Rs 19, the stock discounts its FY2010E earnings by 4.2x and quotes at an enterprise value/earnings before interest, tax, depreciation and amortisation of 2.9x. We maintain our Buy recommendation on the stock with a price target of Rs 45," says Sharekhan's research report.


KRChoksey on Bharat Forge - Target of Rs 118


KRChoksey Research has recommended a buy rating on Bharat Forge with a target of Rs 118 in its research report. "Q4FY09 is expected to be better than Q3FY09 as, non-auto business from Mundhwa Plant is expected to contribute the top line with 10-15% utilization rate and auto sales are expected to get some respite. Further in FY10, non-auto segment is expected to contribute revenue to the tune of Rs 500 crore and this would be a growth driver for the company. At the CMP of Rs 87, the stock is trading at 5.3x FY10E EPS of Rs 16.4. We recommend a BUY on the stock with a target price of Rs 118, implying an upside potential of 35.6% from current levels," says KRChoksey's research report.


Anagram on Emco - Target of Rs 68


Anagram Research has recommended a buy rating on Emco with a target of Rs 68 in its research report. "We remain positive on EMCO’s electrical equipment and projects businesses and the three verticals in the power sector i.e., utilities, equipment, and EPC, it is likely to benefit significantly from the strong macro environment in the power sector. Also we view EMCO’s entry into the South African market to be positive. While there would be a certain lead time before this business scales up, we believe geographic diversification increases the revenue visibility substantially for the company. EMCO is entering into coal trading business as it has recently acquired 37.35% stake in Indonesian mines. We expect this new business venture to substantially boost revenue going forward."

"EMCO enjoy 1.3X order book to sales ratio, which are best among its peers. EMCO has highest manufacturing capacity of around 20,000 MVA. Stock had corrected more than 90% from its 52 week high and its is trading nearly 52 week low. At CMP, stock trades at 2.7x and 2.08x FY09 and FY10 earnings with an EPS of RS 14.34 and 18.69 respectively. We recommended BUY rating with the target of 68," says Anagram's research report.