Stock Views on HDFC Bank, Shree Renuka, Lupin

Religare on Lupin - Target of 656

Religare Hichens Harrison Research has initiated an accumulate rating on Lupin with with a target price of Rs 656 in its research report. "We expect Lupin’s base business to witness an earnings CAGR of 21% over FY08- FY11. The stock is trading at 12.3x FY09E EPS of Rs 46.8 and 11x FY10E EPS of Rs 52.3. We have valued Lupin at 13x one-year forward earnings which is at a 20% premium to its peer group considering its relatively strong earnings profile. We initiate coverage with an Accumulate and a target price of Rs 656," says Religare Hichens Harrison's research report.

Prabhudas Lilladher on Shree Renuka - Target of Rs 89

Prabhudas Lilladher has recommended a buy rating on Shree Renuka Sugars with a target of Rs 89 in its research report. "Shree Renuka Sugars (SRSL) has shown CAGR of 50% in revenues and 125% in net profit over 2001-2007. It has been comparatively more beneficial as compared to its peers due to higher recovery of sugar and ability to export. We expect 11.9% growth in topline in FY2008-09 and 46.9% in FY2009-10. We also expect bottom-line to grow by 86.9% and 47.4% in FY2008-09 and FY2009-10, respectively, giving an EPS of Rs 8.5 and Rs 12.4 in FY2008-09 and FY2009-10, respectively, Buy, target of Rs 89," says Prabhudas Lilladher's report.

Sharekhan on HDFC Bank - Target of Rs 1482

Sharekhan has maintained its buy rating on HDFC Bank with a target of Rs 1482 in its research report. "Fitch, the international rating agency, has assigned a “AAA” rating to the bank’s lower Tier-II bonds with Crisil assigning a “AAA” rating to the upper Tier-II bonds. The capital mobilisation of Rs 1,728 crore through bond issuance should be able to fund HDFC Bank’s growth up to FY2010. At the current market price of Rs 973, HDFC Bank trades at 14.5x FY2009E earnings per share, 5.8x FY2009E pre-provisioning profit and 2.2x FY2009E book value. We maintain our Buy recommendation on the stock with price target of Rs 1,482 for the stock," says Sharekhan's research report.