Stock Views on Sintex Industries, Tata Steel, Indiabulls Real Estate

Motilal Oswal on Indiabulls Real Estate

Motilal Oswal has recommended a buy rating on Indiabulls Real Estate in its research report. "Management has indicated that they would re-evaluate all their development plans and adopt a risk-averse development strategy. IBREL will focus on pre-sales ahead of commencing development, at least to the extent of the construction cost, as a risk-mitigation strategy."

"We have revised our NAV for IBREL to Rs 294 per share, to account for: (1) delay and postponement in development of retail and commercial projects, (2) lower rental assumption for Mumbai projects to Rs 225/sf per month from Rs 275/sf per month, (3) increased cap rates for Mumbai’s commercial office properties to 12% v/s 11% earlier, and (4) lower net cash. The stock is trading at 48% discount to our current NAV estimate of Rs 294 per share. Buy," says Motilal Oswal's research report


Indiabulls Securities on Tata Steel - Target of Rs 255

Indiabulls Securities Research has upgraded its rating on Tata Steel from hold to buy with a target price of Rs 255 in its research report. "We have downgraded our estimates for Tata Steel Limited to account for the greater-than-expected downturn in the global economy and the subsequent fall in steel prices. However, its stock has fallen by around 60% since our last quarterly report. At its current market price (CMP), we believe the market is more than factoring in the negative macroeconomic news and is ignoring the long-term potential of the Company. Our DCF based target price of Rs 255. Hence, we upgrade our rating on the stock from Hold to Buy," says Indiabulls Securities' research report.


Angel on Sintex Industries - Target of Rs 230

Angel Broking has initiated an accumulate rating on Sintex Industries with a 12-month target price of Rs 230 in its research report. "Sintex Industries (Sintex) is a market leader in the manufacture and sale of value added plastics and textile-based products. Sintex intends to leverage its established brand name to increase its Revenues and Profits going ahead. Moreover, an excellent Order Book lends high Revenue visibility to its Monolithic Business Division. The company is reputed for its acumen to recognise and enter new and evolving businesses. Sintex's growth plans are adequately funded and we believe it is wellplaced to achieve its targets on schedule. The company’s Monolithic and Prefab business put together have a strong order book of Rs 1,600 crore. On a conservative basis, we estimate the company's Top-Line and Bottom-Line to post CAGR of 32.6% and 36.3% over FY2008-10E, respectively."

"We Initiate Coverage on the stock with an Accumulate recommendation and 12-month target price of Rs 230, which translates into a Target P/E of 8x FY2010E Adjusted EPS. It may also be noted that we have not converted the FCCBs issued by the company and the warrants to promoters into Equity on account of the current adverse market conditions. We have calculated interest that would be paid out on FCCBs every year until maturity at YTM and have accordingly adjusted Net Profit of the company and calculated Adjusted EPS thereof," says Angel's research report.