Stock views on Power Grid, Seamec, Piramal Healthcare

Indiabulls Sec on Power Grid - Target Rs 120

Indiabulls Securities Research has maintained its buy rating on Power Grid Corporation of India with a target price of Rs 120 in its research report.

"PowerGrid’s net sales were up 34.4% yoy to Rs 14.8 billion in Q3’09, mainly due to a higher transmission income. Transmission revenues increased on account of the commissioning of assets worth Rs 87.5 billion since Q3’08 and the recognition of Rs 1.9 billion of Foreign Exchange Rate Variation (FERV) loss as recoverable transmission income. Our enthusiasm in Power Grid Corporation of India Ltd. (PGCIL)’s stock has been lighted up by the encouraging tariff determination norms issued by the CERC for FY10–14. As a result, we have increased our target price for PGCIL’s stock from Rs 110 to Rs 120 and maintain our Buy rating," says Indiabulls Securities' research report.

Emkay Global on Seamec - Target Rs 73


Emkay Global Financial Services has maintained its buy rating on Seamec with a price target of Rs 73 in its research report.

"Seamec has reported net profit Rs 547 million in Q4CY2008 which is sharply above our expectation on account of higher than expected utilisation of fleet during the quarter. Revenues for the quarter stood at Rs 1044 million registering a growth of 369% yoy as Seamec had all of its four vessels full operational during the quarter as compared to just two vessels operating partially in Q4CY2007. Driven by full utilisation of fleet, higher day rate for Seamec Princess and currency appreciation, EBITDA for the quarter stood at Rs 612 million as compared to loss in Q4CY2007. As per management guidance all of its vessels will be fully available for operation in CY2009."

"Consequently on expected full utilisation of fleet and currency appreciation we are upgrading our earnings estimates for CY2009 by 20% to Rs 24.3 per share. At current levels the stock is trading at undemanding valuations of 2X its CY2009 earnings and P/B of 0.4X. The company has a market cap of USD 34 million and it is already sitting on committed contracts worth 40 million dollars. We maintain our BUY recommendation with a revised price target of Rs 73," says Emkay Global Financial Services' report.


Motilal Oswal on Piramal Healthcare - Target Rs 290

Motilal Oswal has maintained its buy rating on Piramal Healthcare with a target price of Rs 290 in its research report.

"Piramal Healthcare’s 3QFY09 performance was below estimates, with topline growth of 13.1% to Rs 8.3 billion v/s estimate of Rs 8.65 billion, EBITDA margin at 18.8% v/s estimate of 20% and PAT decline of 23% to Rs 599 million v/s estimate of Rs 976 million. We estimate that adjusted for NCE hive-off, PAT has de-grown by 39% for 3QFY09. We reiterate Buy with a target price of Rs 290 (12x FY10E EPS), an upside of 58%," says Motilal Oswal's research report.