Stock Views on Nitin Fire Protection, Indoco Remedies, Reliance Industries

Karvy on Nitin Fire Protection - Target of Rs 239
Karvy Stock Broking has maintained its buy rating on Nitin Fire Protection Industries with a target of Rs 239. "On consolidated basis, we are lowering our sales estimates by 5.5% for FY09E and 12.6% for FY10E. We expect the company to achieve EBITDA margin of 20.6% and 21.5% as against our earlier estimates of 21.7% and 21.8% for FY09 and FY10 respectively. We expect the company to report net profits of Rs 402 million (lowered by 4%) and Rs 502 million (lowered by 11.5%) for FY09E and FY10E respectively. Our revised EPS estimates stands at Rs 31.9 for FY09E and Rs 39.8 for FY10E. Due to lowering of our EPS estimates and lowering of our PE multiple (on account of lowering of growth estimates) we are lowering our price target by 33.6% to Rs 239."


"CNG as a fuel is cost effective to the individual user and from the government's perspective it's an environmental friendly fuel. Hence we believe CNG industry would continue to grow even during adverse economic situation. We continue to maintain our BUY rating on the stock," says Karvy Stock Broking's research report.


Karvy on Indoco Remedies - Target of Rs 185


Karvy Stock Broking has recommended a buy rating on Indoco Remedies with a target price of Rs 185 in research report. "We have downgraded our revenues and earnings on back of dismal performance by the domestic formulations business on back of implementation of strong credit control measures. We have downgraded our revenues from Rs 4.4 billion to Rs 3.9 billion. We downgrade our EPS by 24 % to Rs 37.3 for FY 2009 and introduce or FY 2010 nos at Rs 48.5. Currently the stock is quoting at 3.4x FY 2009E and 2.6x FY 2010E. We rate the stock as a BUY with a price target of Rs 185 based on 3.8x FY 2010E," says Karvy's research report.


Angel on Reliance Industries - Target of Rs 1880

Angel Broking has maintained its buy rating on Reliance Industries with a target price of Rs 1880 in its December 12, 2008 research report. "In an unusual development, the government on Thursday withdrew its affidavit in the Bombay High Court, wherein it had asserted RIL cannot sell its Krishna-Godavari basin gas to anyone without its approval to the pricing formula. The withdrawal came following insistence by RNRL counsel, Ram Jethmalani, to cross examine the government on the issue. Hearing the case, Justice J N Patel suggested that the government could withdraw its affidavit and simply assist the court through a written submission."

"In its affidavit filed last month, the government had also said that RIL could not sell KG basin gas at a price less than $4.20 per million British Thermal Units. “Sale of gas at a price less than $4.20 per mmBtu is not envisaged as per the Empowered Group of Ministers' decision taken in accordance with the Production Sharing Contract (between the government and RIL),'' Ministry of Petroleum and Natural Gas under Secretary S M Sundaram had said in the affidavit. Last week, the court summoned the official in the Petroleum Ministry for the purpose of cross examination in the ongoing case over gas supply. We maintain a Buy on RIL, with a target price of Rs 1,880," says Angel's research report