Stock views on Nava Bharat Ventures, City Union Bank, Patel Engineering

KRChoksey on Patel Engineering - Target Rs 182

KRChoksey is bullish on Patel Engineering and has recommended buy rating on the stock with a target price of Rs 182, in its report. We anticipate company to report a healthy growth in Q4 it is generally the strongest quarter. However going forward in FY10 we expect company’s sales to remain muted due to slowdown in order inflow and delays in project execution owing to liquidity crunch. On the margin front we expect the company to sustain the current margins mainly due to fall in raw material prices. However, we expect the net profit margins to improve marginally from H2FY10, due to reduction in cost of debt."

"At the CMP of Rs145 the stock is trading at a 5.2x its TTM EPS of Rs 28 and 4.3x its FY10 EPS of Rs.33.9. Due to lack of clarity on the execution of real estate projects we have valued PEL’s land bank at cost of Rs 200 crore, which gives us a value of Rs 33.3per share. We recommend a BUY on the stock with a target price of Rs 182. At the target price of 182, the stock will be trading at 5.4x FY010E EPS," says KRChoksey research report.


Karvy Stock Broking City Union Bank - Target Rs 23

Karvy Stock Broking has recommended a buy rating on City Union Bank with a target price of Rs 23 in its research report. "In Q3FY09, City Union Bank (CUB) reported 32% growth (Y/Y) in net interest income to Rs 650 million compared to our estimates of Rs 558 million; higher than our estimates mainly due to higher expansion in yield on funds (of 94 bps) compared to that of in cost of funds (of 70 bps) and much higher credit-deposit ratio at 71% (against 63% in Q3FY08). We cut our price target by 25.8% to Rs 23; we rate the stock as a BUY with a price target of Rs 23 at 1.09x adjusted book value FY10," says Karvy's research report.


KRChoksey on Nava Bharat Ventures - Target Rs 207

KRChoksey has maintained buy rating on Nava Bharat Ventures with a target of Rs 207 in its report. "Nava Bharat Ventures Q3FY09 net sales are gone up by 13.2% (YoY) to Rs 285.3 crore. Its PAT increased by 34.3% (YoY) to Rs 101.1 crore. We are cutting our FY09E and FY10E earning estimates by 2.3% & 7.6% (YoY) to Rs 54.9 & Rs 59.8 on account of slowdown in economy and correction in Ferro Alloy business. In Q3FY09, company’s ferro alloy business segment has disappointed on results. But we believe company’s power business would compensate the situation in coming time."

"At CMP, stock is trading 1.78x on TTM earning of Rs 61.1 and 1.82x on FY10E earning of Rs 59.8. On back of company’s diversified business model, power business initiatives, substantial land value holding at Hyderabad & Secundrabad, we maintain our BUY rating on the stock. Though we are cautious of ferro alloys business slow down, but w e believe the concerns are heavily discounted in the stock price,"says KRChoksey's research report.