Stock views on Suzlon Energy, KEC International, Mphasis

Anagram Research on Suzlon Energy - Target of Rs 60
Anagram Research has recommended a buy rating on Suzlon Energy with a target price of Rs 60 in its research report.

"In the last 2 years, Suzlon has traded in the range of 16 to 65 times its earnings. Whereas Vestas and Gamesa have traded in the range of 25 to 73 and 24 to 42 respectively. Historically the companies in the wind energy market have traded at high P/E levels primarily due to expected high growth of the industry. Furthermore the recent decline in the stock price of Suzlon presents an excellent opportunity for investment in the company."

"We believe Suzlon will continue to command high P/E on account of better growth prospects, well placed among peers & due to planned backward integration leading to higher margins in the future. We believe most of the bad news has already been factored in the stock price. While the long term story for the Wind Energy sector is intact and Suzlon has done well to survive amongst adversity. We recommend BUY rating on the stock with a target price of Rs 60 in 12 month period," says Anagram's research report.


Bonanza on KEC International - Target of Rs 147

Bonanza has recommended investors to buy KEC International on dips near 105-110 levels, for a target of Rs 147 in its research report.

"A RPG group company KEC is leading tower & transmission line EPC contractor. The Power sector is its main customer. It has order book of Rs 5000 crore, out of which over 70% is from overseas. It is executing orders in 15 countries presently. Given the visibility in earnings the scrip looks a good mid-term investment pick. At CMP, it trades at about 5.5 PE based on FY 09 Estimated EPS of Rs.21.7. Investors can buy on dips near 105-110 levels i.e. 5X PE, for a target of Rs 147 i.e. at PE multiple of 7," says Bonanza's research report.


Emkay Global on Mphasis - Target of Rs 240

Emkay Global Financial Services has maintained its buy rating on Mphasis with a price target of Rs 240 in its research report.

"Mphasis’s strong parentage of HP-EDS has helped it sustain high growth rates in the recent past and we believe that would continue to provide strong support in a tough demand environment. We highlight that Mphasis’s ITO business’s growth is driven by restructuring of EDS’s existing ITO contracts as the new contracts incorporate significant offshore ramp up in Infrastructure outsourcing."

"We highlight that the erstwhile EDS management (prior to the HP takeover) had categorically attributed its improved success rate in new deal wins/renewals to Mphasis’s offshore strength and had indicated that those deals had a substantial offshore component. We believe Mphasis remains the ‘Best Demand’ story in a tough macro environment helped by it’s strong HP-EDS parentage. Maintain BUY with a price target of Rs 240," says Emkay Global Financial Services' research report.