Stock Views on Reliance Communications, Mahindra and Mahindra, Sterlite Industries

Emkay Global on Sterlite Industries - Target of Rs 301

Emkay Global Financial Services has maintained its buy rating on Sterlite Industries (India) with a target of Rs 301 in its research report. "Despite the current slowdown, SIL’s expansion plans are on track and the management expects the plants to be operational within time and budget. On EV/EBITDA basis the stock is trading at 2.1x FY09E EV/EBITDA and at 2.5x FY10E EV/EBITDA; while on P/B basis the stock is trading at 0.6x FY09E book value and at 0.5x FY10E book value. We maintain BUY on the stock, with target price of Rs 301," says Emkay Global Financial Services' research report.


Sharekhan on Mahindra and Mahindra - Target of Rs 565


Sharekhan has maintained its buy rating on Mahindra and Mahindra with a target of Rs 565 in its research report. "Mahindra & Mahindra’s (M&M) unit Punjab Tractors has entered into a memorandum of understanding with Sumitomo Corporation to sell its 14.04% stake in Swaraj Mazda Ltd (SML). We continue to value M&M on a sum-of-the-parts basis, valuing the core business at Rs 314 and the subsidiaries at Rs 251. We maintain our Buy recommendation on M&M’s stock with a price target of Rs 565," says Sharekhan's research report.


Prabhudas Lilladher on Reliance Communications - Target of Rs 367


Prabhudas Lilladher has recommended a buy rating on Reliance Communications with a target price of Rs 367 in its December 31, 2008 research report. "RCom announced the commercial launch of GSM services in 6k new towns in addition to 5k towns already under coverage in 8 existing GSM circles. GSM launch will help RCom not only garner incremental subscriber net additions but also help in gaining advantage of the roaming revenues. Moreover, FCCB MTM losses, leveraged balance sheet vis-à-vis Bharti and higher-than-anticipated treasury income for RCom, is reflected in the price. Buy, target of Rs 367," says Prabhudas Lilladher's research report.