Stock Views on Kalpataru Power, Nestle, Greaves Cotton

LKP Shares on Greaves Cotton - Target of Rs 125

LKP Shares has recommended a buy rating on Greaves Cotton with a target price of Rs 125 in its December 13, 2008 research report. "Recent measures by the RBI should improve vehicle financing especially since Greaves now is present in the four-wheeler sub one-ton category of commercial vehicles, which could help mitigate the negative growth being witnessed in the 3-wheeler segment. With a debt-equity ratio of 0.13 and having already completed all its capital expenditure programs through internal accruals and having cash per share of Rs 15. We recommend a BUY with a one-year price target of Rs 125," says LKP Shares' research report.


Mansukh Securities on Nestle - Target of Rs 1700

Mansukh Securities and Finance has recommended a buy rating on Nestle India with a target price of Rs 1700 in its December 12, 2008 research report. "Nestle India belongs to the set of the companies having high cash and low debt. As the company is into food processing industry, we believe it is set to grow in coming quarters keeping in view the product launches, falling inflation, favourable demand scenario and improved concentration on distribution. Based on DCF valuation, assuming a 11.02% WACC and a 6.5% terminal growth, we have arrived at a fair value estimate of Rs 1700. We assign BUY rating on the counter," says Mansukh Securities and Finance's research report.


Karvy on Kalpataru Power - Target of Rs 403

Karvy Stock Broking has recommended a buy rating on Kalpataru Power Transmission with a target price of Rs 403 in its December 15, 2008 research report. "A consortium of Kalpataru Power Transmission and Zangas bagged an Rs 2400 million worth gas pipeline contract of GAIL. We are revising our earning multiple from 8x to 5x, in line with the weighted average P/E multiple of peer over FY09 earnings. Hence, we value KPTL standalone at Rs 347 that is 5 x its FY10E earnings. We value JMC projects, its 52% subsidiary, at Rs55/share, based on 5x FY10E earnings. Hence, we arrive at a target price of Rs 403 for KPTL (consolidated). However, during last one month stock price of KPTL witnessed stiff correction of 40%; which we feel is overdone. Moreover, at the current price, dividend yield of KPTL is around 3%. Hence, factoring in newly won two projects, we remain positive on the stock with a target price of Rs 403 and rate it a BUY," says Karvy's research report.