Stock views on Sunil Hitech Engineers, Suzlon, GSK Pharma

Angel Broking on Sunil Hitech - Target Rs 11

Angel Broking has a buy recommendation on Sunil Hitech with target price of Rs 111 in its research report.

"Sunil Hitech Engineers (SHEL), enjoys a strong order book position of Rs 1,298 crore or 4x its FY2008 revenue. This strong order book position provides high revenue visibility for the company over the next two years. Over FY2008-10E, we expect SHEL's net revenue to clock a CAGR of 45% on a robust order book size of Rs 1,298 crore. We expect the company's operating profits to post a CAGR of 37% to Rs 92.4 crore during the mentioned period. Going ahead, we expect the company to post 23% CAGR in net profit on the back of better operational performance and decline in Interest rates. We initiate coverage on the stock, with a Buy recommendation and Target Price of Rs 111, implying an upside of around 76% from current levels," says Angel Broking's research report.

IIFL on Suzlon - Target Rs 50

IIFL has maintained its add rating on Suzlon with a target price of Rs 50 in its research report. "REPower (73.71% owned by Suzlon) has won the largest contract in the offshore wind energy space so far a Euro 2 billion framework contract from RWE Innogy. This contract reinforces REPower’s strength in the offshore market and enhances visibility for its offshore business. However, with installation of its machines scheduled to commence from CY11, we expect no material impact of this contract in the short term, ADD, target of Rs 50," says IIFL's research report

IIFL on GSK Pharma - Target Rs 1265

IIFL has maintained its add rating on Glaxo Smithkline Pharma with a price target to Rs 1265 in its research report. "Glaxo’s 4QCY08 results were marginally below our expectations, mainly on lower EBIDTA margin, which declined 175 bps YoY and 869 bps QoQ to 28.4%. Revenues came in line with our expectation at Rs 3,685 million, up 8.7% YoY but down 19.4% QoQ (the December quarter has been historically weak for Glaxo). For the full year CY08, revenues grew 10.1% on like-to-like basis and adjusted net profit grew 12.1%. We believe that new product launches under patent protection will help Glaxo maintain its growth rates in the foreseeable future.

Glaxo has a lean asset base, with most of manufacturing being outsourced. Hence, the company also stands to gain from falling prices of intermediates and APIs. This, we believe, will help the company maintain its EBITDA margin at CY08 levels, even in the event of a slowdown in the domestic market. We maintain our ADD recommendation and raise our price target to Rs 1265," says IIFL's research report.