Stock Views on Sun Pharma, ICICI Bank

Religare on ONGC - Target of Rs 891

Religare Hichens Harrison Research has recommended a buy rating on Oil and Natural Gas Corporation (ONGC) with a target price of Rs 891 in its research report. "Subsidy burden expected to lighten significantly in FY10 due to positive marketing margins from petrol and diesel. Opec production cuts to lend fillip to oil prices in near term. We have assumed net realisations of US$ 45/bbl for FY10; depreciating rupee would act as a cushion. BUY, target Rs 891," says Religare Hichens Harrison's research report.

Angel on ICICI Bank - Target of Rs 714


Angel Broking has maintained its buy rating on ICICI Bank with a target price of Rs 714 in its research report. "ICICI Bank has deferred sale of its holding in Firstsource Solutions, a Mumbai-based pure-play business process outsourcing (BPO) entity. The Bank along with its subsidiaries owns close to 27% in the BPO firm. The Bank is said to have initiated discussions with a few global private equity (PE) and strategic players to sell its stake valued at around Rs 660 crore."

"Industry sources indicate that PE players such as Warburg Pincus and Temasek were among some of the PEs interested parties. Firstsource, which provides business process management to global players in the Banking & Financial Services, Telecom, Media and Healthcare sectors employs close to 20,000 personnel and clocked Revenues of around Rs 1,500 crore and Net Profit of Rs 150 crore. We maintain a Buy on the stock, with a target price of Rs 714," says Angel's research report.

Religare on Sun Pharma - Target of Rs 1433

Religare Hichens Harrison Research has recommended a buy rating on Sun Pharmaceutical Industries with a target of Rs 1433 in its research report. "Superior business profile; earns EBITDA margins of 35% – the highest among peers. Limited exposure to high pressure US generics market (25% of base business). Base business earnings set to post 31% CAGR over FY08-FY10 driven by a strong operating performance across segments. Also stands to gain from one-time Para-IV opportunities in the US in FY09 and FY10. BUY, target of Rs 1433," says Religare Hichens Harrison's research report.