Stock Views on Lanco Infratech, Bharti Airtel, Jubilant Organosys

Karvy on Jubilant Organosys - Target of Rs 220


Karvy Stock Broking has upgraded its rating on Jubilant Organosys from outperformer to buy with a target price of Rs 220 in its research report. "We maintain our positive outlook on the company from long term perspective considering CRAMS (Contract Research and Manufacturing services) industry dynamics and company's unique business model. We maintain our net revenues estimates at Rs 37.34 billion in FY09 and Rs 48.73 billion in FY10E and EBITDA margin estimates at 18.7% in FY09 and 18.9% in FY10E. On account of repayment of FCCBs, we have assumed existing equity of Rs 147.5 million outstanding shares for FY10 and hence earnings estimates are increasing by 13% to Rs 32.66. We have factored higher interest expense for FY10 on back of 42% premium payment on FCCB pending issue and increase in average debtor and inventory days due to tighter liquidity position prevailing in the market. We upgrade our price target by 10% to Rs 220 based on PE of 6.73x on FY10E basis. We upgrade the rating from "Outperformer" to "BUY" on account of earnings upgrade and steep fall in stock price by 34% since our last update," says Karvy's research report.


VCK Share on Bharti Airtel - Target of Rs 910


VCK Share and Stock Broking Services has maintained its buy rating on Bharti Airtel with a target price of Rs 910 in its research report. "We maintain our ‘BUY’ rating on the stock with target price at Rs 910. The global bidding in 3G auctions, highly competitive situation and falling ARPUs are the downside risks. With a market share of 25% and low debt-equity ratio, we are highly positive on the stock. Bharti is awaiting clarification on definition of development blocks for 2% reduction of USO levy and is confident of being the biggest beneficiary from the same by virtue of having the largest wireless network. The company continues to maintain its leadership position with strong earning visibility and excellent execution record. We believe that Bharti will continue to be the market leader with 25% market share by the end of FY10. We arrive at our Rs 910 target price for Bharti Airtel based on a combination of EV/EBITDA, P/E, P/CEPS, and P/BV analysis," says VCK Share and Stock Broking Services' research report.


Angel on Lanco Infratech - Target of Rs 320


Angel Broking has maintained its buy rating on Lanco Infratech with a target price of Rs 320 in its research report. "Hyderabad-based Lanco operates in three different businesses in the Infrastructure space, viz, Power, Real Estate and Construction & Engineering, Procurement and Construction. Recently, Lanco had bid for the Rs 18,000 crore ultra mega power project (UMPP) at Tilaiya in Jharkhand in competition with NTPC, Reliance Power and Tata Power. This move by Lanco is in line with its strategy to expand in the Power space and become the biggest independent private player. However, we do not believe that this should materially impact its Financials or Stock price in the short term. Based on the sum-of-the-parts (SOTP) methodology, we have arrived at a target price of Rs 320 and maintain a Buy on the stock," says Angel's research report.