Stock views on Neyveli Lignite Corporation, Dwarikesh Sugar, Lanco Infratech

Indiabulls Sec on Neyveli Lignite- Target Rs 100
Indiabulls Securities Research has maintained its buy rating on Neyveli Lignite Corporation with a target price of Rs 100 in its research report.

"Neyveli Lignite Corporation Ltd. (NLC) posted a 9.7% yoy increase in the net profit in Q3’09. This was partially driven by the finalisation of the FY04–09 power tariffs for TPS-I, resulting in an additional revenue of Rs 1.7 billion during the quarter. We maintain our target price of Rs 100, based on our DCF valuation. Since our target price implies a 38% potential upside from the CMP, we maintain our Buy rating," says Indiabulls Securities' research report

LKP Shares on Dwarikesh Sugar - Target Rs 75

LKP Shares has recommended a buy rating on Dwarikesh Sugar Industries with a price target of Rs 75 in its research report.

"DSIL is a fully integrated sugar complex with a capacity of 21,500 TCD in sugar at its three manufacturing facilities located at Dwarikesh Nagar-DN at Bijnor, Dwarikesh Puram-DP at Bijnor and Dwarikesh Dham-DD at Bareilly. The DD unit commenced production last fiscal and the steep fall in sugar prices last fiscal coincided with DSIL execution of the ultra modern DD plant along with the incremental power capacity and the combined effect led to a loss of Rs 250 million last fiscal."

"The Rs 6 billion debt on its books created substantial financial strain as the revenue side had not begun reflecting while the cost side reflected itself fully. Q1-FY’09 has witnessed a smart profitability from the co-generation unit with EBIT of Rs 150 million and the sugar operations have also turned positive with EBIT of Rs 54 million. BUY, with a one-year price target of Rs 75," says LKP Shares' research report.

Angel Broking on Lanco Infratech - Target Rs 279

Angel Broking has maintained its buy rating on Lanco Infratech with a target price of Rs 279 in its research report.

"Lanco Infratech (Lanco) has emerged as the lowest bidder for the 1,600MW Dhopave coastal power plant located in the Ratnagiri district of Maharashtra. The bidding process for the power plant started in November 2006 and a shortlist of six major private power players was released in August 2007. Lanco expects to get the letter of intent (LOI) soon after which it will take over the land and a special purpose vehicle (SPV) will be formed for the project. The company has planned to approach domestic banks for funding and aims to have Debt/Equity ratio at 70:30."

"Total cost of setting up the power plant will be approximately Rs 8,500 crore and will include construction of a jetty for imported coal, which is expected to cost Rs 500 crore. Although the project is required to be completed within 54 months, the company hopes to complete the project within 48 months from zero date, ahead of the target date. Lanco will develop the project on build, own and operate (BOO) basis and the state generation company, MahaGenco will purchase the power for the procurer, Mahavitaran, the power distribution arm of the Maharashtra government. We maintain a Buy on Lanco, with a target price of Rs 279," says Angel Broking's research report.