Stock views on Sintex, FAG Bearing, Tech Mahindra, Bank of Baroda

HDFC Securities on BOB - Target Rs 336

HDFC Securities has maintained its buy rating on Bank of Baroda with a price target of Rs 336, in its research report." Bank of Baroda (BOB) reported strong PAT growth of 41.4% YoY to Rs 7.1 billion on the back of strong operating performance. PAT was up on the back of NII growth of 46.6% YoY as well as very good treasury performance. Bank of Baroda has improved its NII performance where it has been laggard in last few quarters. It was done by reducing reliance on bulk deposits as well as expanding yield on advances. We maintain our BUY recommendation and price target of Rs 336," says HDFC Securities' report.


Reliance Money on Tech Mahindra - Target Rs 292


Reliance Money has maintained its buy rating on Tech Mahindra with a target of Rs 292 in its research report. "Tech Mahindra (TML) reported disappointing sequential performance with revenues in USD term declining by 14% qoq to USD 231.9 million. Net profit for the quarter declined by 5% qoq to Rs 2228 million (Excluding tax write back of Rs 673 million in Q2FY09). Weak industry environment coupled with expectations of weak results have led to a significant correction in TML shares prices in the last three months, down by 65% from a high of Rs 631 in October 2008. We maintain BUY on TML with a target price of Rs 292, at our target price the stock will be valued at 4X FY10E," says Reliance Money's research report.


Angel Broking on FAG Bearing - Target Rs 350

Angel Broking is bullish on FAG Bearing and has recommended buy rating on the stock with a target of Rs 350, in its report. "FAG Bearings’ prospects are derived from demand arising in the Capital Goods and Automobile industry. We believe industry valuations are likely to remain subdued in the near term due to overall slowdown in the sector. The company posted CAGR of 14% and around 30% in Revenue and Profit over the last five years, respectively. Going ahead, over CY2008-10E, we conservatively model, volumes to record a CAGR of 7-8%, which will drive around 9-10% growth in Revenues and around 10% growth in Net Profit in the mentioned period. We believe Revenue growth will be largely driven by higher contribution from new products."

"We bank on the company’s strong fundamentals of consistently recording high RoE and RoCE. Further, its debt free status would help it post better Bottom-line growth amidst a high Interest Rates regime. At the CMP of Rs 261, the stock is quoting at 4.5x CY2009E Earnings, which is much lower than its historical P/E of around 14x. We maintain a Buy on the stock, with a Target Price of Rs 350 owing to its debt free status and strong Balance Sheet, which would act as a cushion in overall industrial slowdown," says Angel Broking's research report.


IIFL on Sintex India - Target Rs 123

IIFL has recommended an add rating on Sintex India with a target of Rs 123, in its report. "Key raw-material costs are down 40% from their peak and 15% from YTDFY09 average levels in January 2009. We believe a compensating volume growth in FY10 will be difficult, given that OEMs account for 45% of Sintex’s FY09ii revenues. Non-auto OEMs remain vulnerable in the current slowdown as the company lost a US$10m contract in the wind energy segment at Wausaukee. Though aerospace and defence businesses continue to be strong, the company mentioned pricing pressures in the wind energy and medical imaging businesses. We expect Sintex’s revenues and PAT to decline 4% and 13.7% YoY respectively in FY10ii. We downgrade the stock to ADD with a target price of Rs 123/share, at 0.8x FY10ii BV," says IIFL's research report.