Stock views on Bank Of Baroda, Bajaj Auto

Karvy Stock Broking on Bank Of Baroda - Target of Rs 295

Karvy Stock Broking has maintained its buy rating on Bank Of Baroda with a price target to Rs 295 in its research report.

"We are revising our FY2009 restructured standard assets from Rs 3.8 billion to Rs 30 billion as we believe that BOB's corporate loan portfolio has deteriorated and many of the bank's corporate customers have requested for restructuring their standard loans. As a result our ABV for FY2009 has been revised downwards to Rs 257 from our earlier estimate of Rs 302 and our FY2010 ABV has been revised to Rs 321 from Rs 368. We are downgrading our price target to Rs 295 from Rs 335 to factor the deteriorating economic environment. We continue to maintain our Buy recommendation," says Karvy Stock Broking's research report.

Sharekhan on Bajaj Auto - Target of Rs 640

Sharekhan has maintained its buy rating on Bajaj Auto with a price target of Rs 640 in its research report.

"We believe that due to the tough environment it will not be very easy for BAL to regain its market share despite the new launches. However, with stronger exports, we expect the company to record a sales growth of 9% in FY2010. Though in future the sales performance will be much dependent on the success of its new launches, the company should be able to clock a moderate sales growth from the next quarter onwards. The short-term outlook continues to be weak, with the present BAL brands not performing as well as expected and the company losing out market share to Hero Honda and the other players."

"Overall, the BAL stock may underperform in the short term on account of the uncertainties and concerns discussed in this note. We believe that the valuation gap with Hero Honda is likely to narrow down as things improve from Q1FY2010 onwards. We maintain our Buy recommendation on BAL with a price target of Rs 640," says Sharekhan's research report.

PINC on Bajaj Auto - Target of Rs 669

PINC Research has recommended a buy rating on Bajaj Auto with a target price of Rs 669 in its research report.

"Over the last two years, Bajaj Auto has disappointed the market with declining volumes. However despite lower volumes, we see profitability of the company to improve from the current levels. We upgrade our recommendation on the stock to ‘BUY’ with a target price of Rs 669 discounting FY10E earnings 10x," says PINC's research report.

Stock views on Crompton Greaves, Indian Overseas Bank, Patel Engineering

IIFL on Crompton Greaves - Target of Rs 151

IIFL has recommended an add rating on Crompton Greaves with a target price Rs 151 in its research report.

"We met Crompton’s management post the announcement of share buyback and investment in group company Avantha Power & Infrastructure Ltd (APIL). The management views these initiatives as the best use of cash on the parent balance sheet, as the company has slowed down its own capex plans. These two initiatives would result in cash outflow of Rs 4.51 billion during FY10."

"Deleveraging the subsidiary balance sheets or cash conservation in a downturn would have been a more prudent strategy, in our view. However, the management was sanguine on the outlook of both domestic and overseas power T&D businesses and expressed confidence on the cash generation ability of existing businesses. In our view, more clarity on APIL’s financial details and development plans would be required to improve investor sentiment on the related party transaction. "ADD" target price of Rs 151," says IIFL's research report.

Sunidhi Securities on IOB - Target of Rs 60

Sunidhi Securities & Finance has recommended a buy rating on Indian Overseas Bank with a price target of Rs 60 in its research report.

"Indian Overseas Banks' total business as on December 31, 2008 rose from Rs 1,33,413 crore as at end December 2007 to Rs 1, 62, 575 crore-a growth of 22%. Total deposits grew by 15% to Rs 90, 866 crore from Rs 78, 791 crore. Advances spurted 31% in Q3FY09 to Rs 71, 709 crore from Rs 54, 6222 crore (YoY). As at December 31, 2008 IOB’s CASA (current accounts saving accounts) is marginally down to 29.23% from 30.93% (YoY)."

"During Q3FY09, total income rose 40% to Rs 3204 crore and net profit by 26% to Rs 388 crore. NIM and NP margin stood at 3.14% % and 12.4% respectively. Its balance sheet grew by 31% to Rs 19, 747 crore (YoY). We recommend BUY with a target of Rs 60 in the medium term," says Sunidhi Securities & Finance's research report.

Karvy on Patel Engineering - Target of Rs 305

Karvy Stock Broking has maintained its buy rating on Patel Engineering Company with a price target of Rs 305 in its research report.

"Patel Engineering has bagged an order worth of Rs 7.99 billion from the Narmada Valley Development Authority for Bargi Diversion Project in joint venture with SEW Construction Ltd. The company's stake in the project would be around 60% which will translate the order inflow of Rs 5 billion. The project would be executed in three years and provide the EBIDTA margin of around 15%. We have excluded the real estate value from our valuation due to no clarity on development plans and revise the price target downward. We have valued the core business of the company using EV/EBITDA methodology by providing 20% discount to its historical trough multiple of 5.5x. We re-iterate our BUY rating with downgraded price target of Rs 305," says Karvy Stock Broking's research report.

Sharekhan views on Tata Tea, Sun Pharmaceutical, Crompton Greaves

Sharekhan on Tata Tea - Target of Rs 853

Sharekhan has maintained its buy rating on Tata Tea with a price target of Rs 853 in its research report.

"In line with the strategy, Tata Tea, together with European Bank of Reconstruction and Development (EBRD), has decided to acquire a 51% stake in Grand, a leading player in the Russian economic beverage segment. Tata Tea (through one of its overseas subsidiaries) and EBRD will hold a 33.2% and a 17.8% stake respectively in the company. The balance 49% stake will remain with the founding promoter of the company (Dr Alexander E Borisov)."
"With tea volumes growing moderately in the domestic and international markets, we expect Tata Tea’s new initiatives, such as the launch of green and herbal tea, the foray into non-carbonated beverage segment and the entry into new geographies, to drive growth at the consolidated level going forward. However, in the near term, the company’s profitability would remain under pressure, as the prices of its key raw materials (especially raw tea) shall remain firm. At the current market price, the stock trades at 8.7x its FY2010 earnings estimate and EV/EBIDTA of 3.2x. We maintain our Buy recommendation on the stock with a price target of Rs 853," says Sharekhan's research report.

Sharekhan on Sun Pharmaceutical - Target of Rs 1295

Sharekhan has maintained its buy rating on Sun Pharmaceutical Industries with a price target of Rs 1,295 in its research report.

"Sun’s domestic business has clearly outpaced the industry by registering a +17% growth in M9FY2009 vs a 12-14% industry growth in the same period. With a strong field force, a robust pipeline of new launches, strong product portfolio and a firm foothold in the domestic market, Sun expects its domestic formulation business to continue to outpace the industry growth of 10-12%. At the current market price, Sun Pharmaceutical Industries is valued at 12.6x FY2009E and 14.1x FY2010E fully diluted earnings. Uncertainty on the Taro acquisition and Caraco’s warning letter would remain as an overhang on the stock and cap the near-term upside. We maintain our Buy recommendation on the stock with a price target of Rs 1,295," says Sharekhan's research report.

Sharekhan on Crompton Greaves - Target of Rs 157

Sharekhan has maintained its buy rating on Crompton Greaves with a price target of Rs 157 in its research report.

"Crompton Greaves Ltd (CGL) has emerged as a strong power T&D product and service provider in the past few years, thanks to the acquisitions made globally. The stake purchase in APIL will squeeze the company’s plan to make any further acquisitions in the near term. Further, the diversification into the power business may be remunerative only in the longer term as any meaningful returns may flow in only after three to four years. This will suppress the company’s RoE in the near term, thereby exerting pressure on the stock’s valuations.
We remain positive about CGL’s business and operational efficiencies as CGL has performed consistently on these parameters. We have revised our price target for the stock to Rs 157 (9xFY2010E earnings) mainly to capture the lower returns expected after the investment in APIL. We are maintaining our Buy recommendation on the stock as its current valuation of 6.1x FY2010E earnings per share (EPS) is attractive. However, the stock may underperform in the near term as the proposed investment in a group company is sentimentally negative for the stock," says Sharekhan's research report.

Angel Broking views on Axis Bank, HDFC Bank, Orchid Chemical

Angel Broking on Axis bank - Target of Rs 859

Angel Broking has maintained its buy rating on Axis Bank with a target price of Rs 859 in its research report.

"Axis Bank had been gradually re-rated from sub 1x P/ABV multiples up to April 2003, with a median P/ABV of 2.8x since April 2007, as the market continued to recognise and reward its transformation into a strong Private Sector Bank with an attractive potential for wealth creation. At current valuations, the stock is once again trading at sub 1x P/ABV multiples on exaggerated concerns regarding asset quality and top management continuity, which we believe offer substantial margin of safety even based on our worst case sensitivity analysis. We maintain a Buy on Axis Bank, with a target price of Rs 759, implying an upside of 91%," says Angel Broking's research report.

Angel Broking on HDFC Bank - Target of Rs 1666

Angel Broking has maintained its buy rating on HDFC Bank with a target price of Rs 1,666 in its research report.

"At current valuations, HDFC Bank is trading below its six-year median P/ABV multiple. We believe the Bank is among the most competitive banks in the Sector and is poised to maintain its profitable growth over the long term. We believe the Bank's competitive advantages, driving gains in CASA marketshare and traction in multiple Fee Revenue streams, can support up to 5% higher core sustainable RoEs vis-à-vis sectoral averages over the long term, creating a material margin of safety in our target valuation multiples. We maintain a Buy on HDFC Bank, with a target price of Rs 1,666, implying an upside of 41%," says Angel Broking's research report.

Angel Broking on Orchid Chemical - Target of Rs 198

Angel Broking has maintained its buy rating on Orchid Chemicals and Pharmaceuticals with target price of Rs 198 in its research report.

"Orchid Chemicals and Pharmaceuticals announced that it has bought back bonds worth USD 25.7 million out of the total outstanding FCCB of USD 194.7million as on date, and was in the process of extinguishing the same. The funding has been done through ECB. Post this transaction, the company would have FCCBs worth around USD 169 million of which USD 19.7 million is payable in FY2011 and USD 149.3 million in FY2012. The company intends to purchase additional bonds from the market and extinguish them from time to time. We believe the transaction per se will not materially alter the company’s current Debt/Equity ratio of 3x.
We maintain a Buy on the stock, with a target price of Rs 128 as the stockcontinues to trade at 11.8x FY2009E and 3.9x FY2010E adjusted Earnings. We believe launch of Piperacilin-Tazobactum in Europe would be a key positive trigger for the stock in the near term," says Angel Broking's research report.

Stock views on Shriram Transport Finance, Garware Offshore Services, Great Offshore, Simplex Infra

SKP Sec on Shriram Transport - Target of Rs 247

SKP Securities has recommended an accumulate rating on Shriram Transport Finance Corporation with a price target of Rs 247 in its research report.

"STFC registered more than 60% growth in AUM from Rs 12038 crore in FY07 to Rs 19520 crore in FY08. The growth was mainly achieved due to availability of ready funds to the company. The inflow of funds leveraged company’s brand, customer base, wide reach and strong business model. Going ahead we expect the same factors to drive the growth of AUM to Rs 37619 crore by FY11. STFC being a leader in the financing of the STOs and FTUs, the unique business model will act as a support to survive in the prevailing slowdown and restrict its losses below 2%. We value the stock at 1.50x FY 11E book value implying a price target of Rs 247 (33% upside) in 12 months and recommend accumulate rating on the stock," says SKP Securities' report.

PINC Research on Garware Offshore - Target of Rs 80

PINC Research has maintained its buy rating on Garware Offshore Services (GOS) with a price target of Rs 80 in its research report.

"GOS has timed the market well in the past with its expansion. Going forward, the outlook remains positive for the company as the newer assets should provide the necessary momentum for earnings growth. Also, the newer assets would have a better margin profile. In addition, with a diversified revenue stream to include in chartering and commission sale revenues, the revenue cycle seems relatively insulated. We maintain our 'BUY' recommendation on the stock, with a revised price target of Rs 80 over a 15 month perspective, on the back of higher earnings from new assets and prospects of vessel addition which should provide further fillip to earnings," says PINC's research report.

PINC Research on Great Offshore - Target of Rs 300

PINC Research has maintained its buy rating on Great Offshore with a price target of Rs 300 in its research report.

"GOFF is well poised to weather the slowdown in the offshore service space by having a well diversified business model, minimal capex and leverage as well as high visibility of revenues. 75% of GOFF’s fleet are contracted on long term charters thereby locking in assets for assured cash flows and enhancing revenue visibility. Also, most of its assets are contracted with ONGC, which should carry out upstream exploration irrespective of where oil prices are headed. This minimises risk of contract cancellations and guarantees revenue streams. We maintain our 'BUY' recommendation on the stock, with a price target of Rs 300 over a 15 month perspective, in light of high revenue visibility, low leverage and assured cash flows from government contracts," says PINC's research report.

Motilal Oswal on Simplex Infra - Target of Rs 296

Motilal Oswal has maintained its buy rating on Simplex Infrastructures with a price target of Rs 296 in its research report.

"In 4QFY09 ytd, Simplex has witnessed order intake of Rs 15 billion in 4QFY09, and current order book is estimated at Rs 100 billion (similar to December 08 levels), book to bill ratio of 2.2xFY09 revenues. Order intake in 4QFY09 comprises of segments like industrials, power, urban infrastructure (Delhi, Bangalore Metro etc).

We estimate earnings CAGR of 25.6% during FY09-FY11, driven by 14% revenue CAGR and lower interests cost during the same period. Maintain Buy with price target of Rs 296/sh (106% upside), based on PER of 8xFY10," says Motilal Oswal's research report.

Stock views on Bharat Heavy Electricals, Aban Offshore, Lupin

Sharekhan on BHEL - Target of Rs 2546

Sharekhan has maintained its buy rating on Bharat Heavy Electricals, BHEL with a price target of Rs 2,546 in its research report.

"BHEL’s strong revenue visibility (with an order book of 4.8x FY2008 revenues) coupled with its strong balance sheet makes it our preferred pick in the sector. We expect the company to report a turnover growth of 31.6% year on year (yoy) and profits to grow at 8.3% yoy. For the full year, the company would be making a provision of Rs 1,313 crore for increment in wages, as recommended by the Sixth Pay Commission. For Q4FY2009, the provision would be to the tune of Rs 475 crore. We expect the total order inflows for FY2009 to rise by 39%, while the backlog should settle at a 19% growth on a year-on-year (y-o-y) basis."

"BHEL currently has a strong Rs 1,13,500 crore worth of orders on hand, imparting revenue visibility for the next three to four years, which makes BHEL our preferred pick in the sector. At the current market price, the stock trades at 16.9x FY2010E earnings and at a premium to the Sensex owing to its resilient business model and strong balance sheet. We reiterate our Buy on the stock with a price target of Rs 2,546," says Sharekhan's research report.

Hem Securities on Aban Offshore - Target of Rs 784

Hem Securities has recommended a buy rating on Aban Offshore with a price target of Rs 784 in its research report.

"Aban Offshore Ltd., has two business segments: Offshore Oil Drilling and Production services, and Wind Power generation. The company posted excellent financial figures for the quarter ended December 2008. The net sales for the company gone up by 54.88% to Rs 2618.68 million for the Q3FY09 as against the net sales of Rs 1690.74 million for the Q3FY08. The net profit for the company rose to Rs 558.72 million for the Q3FY09 in comparison to net profit of Rs 477.67 million for the Q3FY08 with the growth rate of 16.97%. The net profit margin stood at 21.34% for Q3FY09 in comparison to 28.25% for Q3FY08."

"Besides, the current market valuation also makes an attractive case for fresh investments in the stock. Aban Offshore has contracts of about Rs. 14000 crore, which clearly shows the strength of the company. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 484 in the medium -term investment horizon with an appreciation of 15%," says Hem Securities' research report.

Sharekhan on Lupin - Target of Rs 840

Sharekhan has maintained its buy rating on Lupin with a price target of Rs 840 in its research report.

"Lupin has acquired a majority stake in Multicare Pharmaceuticals Philippines, Inc (MC) in the Philippines. MC reported revenues of Php 272 million peso (USD 5.6 million) and was profitable for the year ending December 2008. This strategic partnership will allow Lupin to strengthen MC’s product portfolio in the Philippines through its own brands and provide cross-selling opportunities through some of its latest acquisitions in the other markets."

"With the sustained growth momentum in the domestic market, strong visibility of the earnings from the US business owing to sizeable product opportunities and the ramp-up of the business in Europe, Japan, Australia and the other markets, we expect Lupin to deliver a strong performance over the next few years. We expect MC to be accretive to Lupin’s earnings from the first year itself, though the contribution would be very marginal. Keeping in mind the strong business fundamentals and the growth potential of the company, we maintain our Buy recommendation on Lupin with a price target of Rs 840" says Sharekhan's research report.

Stock Views on Cadila Healthcare, Ranbaxy,

KRChoksey on Ranbaxy Laboratories - Target of Rs 183

KRChoksey has maintained its buy rating on Ranbaxy Laboratories with a price target of Rs 183 in its research report.

"Ranbaxy to launch Daiichi Sankyo’s innovative antihypertensive drug, “Olvance” in India. We have revised our earnings estimate keeping in view the revenue inflow from the approval for the generic version of Imitrex and the launching of anti hypertensive drug, Olvance. We are positive about Ranbaxy as Medicines and Healthcare products Regulatory Agency (MHRA) of UK, and the Therapeutic Goods Administration (TGA), Department of Health and Ageing of the Australian Government, have issued Good Manufacturing Practice (GMP) certificates for its manufacturing site at Paonta Sahib (India), following a joint audit conducted in October 2008."


"The MHRA approval will not only cover product filings for the UK but will also apply to product filings for the entire European Union. We maintain our BUY rating to the stock with a price objective of Rs 183," says KRChoksey's research report.


Reliance Money on Ranbaxy - Target of Rs 189

Reliance Money has upgraded its rating on Ranbaxy Laboratories from hold to buy with a target price of Rs 189 in its research report.

"Ranbaxy’s Paonta Sahib plant (that has been under U.S. Food and Drug Administration (USFDA) Import Alert since September 2008) receives approval from United Kingdom (UK- MHRA) and Australian (TGA) regulatory authorites for GMP Compliance. Moreover, the UK - MHRA approval will also apply to all product filings for the entire European Union region. At the CMP, Ranbaxy is attractively valued at 8x its CY09E earnings (after factoring the NPV value worth Rs 70 for its FTF pipeline). Hence, with about 25% price correction in in Ranbaxy, we upgrade our rating from 'Hold' to 'Buy' with the earlier fixed target price of Rs 189," says Reliance Money's research report.


Emkay Global on Cadila Healthcare - Target of Rs 339


Emkay Global Financial Services has maintained its buy rating on Cadila Healthcare with a target price of Rs 339 in its research report.


"Cadila Healthcare entered into an agreement with the US-based pharma major Eli Lilly for the discovery and development of drugs in the area of cardiovascular research. Under the agreement, Lilly would have an option to license any resulting molecules at different stages. Cadila Healthcare would receive potential milestone payment of up to USD 300 million and royalties on sales upon the successful launch of any compounds. The exact impact on earnings will not be ascertained because of lack of information. However, we view this development as positive for the company as it demonstrates the R&D capabilities of Cadila Healthcare. We reiterate our Buy rating on the stock with a target price of Rs 339," says Emkay Global Financial Services' research report.

Stock Views on Great Offshore, Jindal Saw, Cadila Healthcare

Reliance Money on Great Offshore - Target of Rs 376

Reliance Money has maintained its buy rating on Great Offshore with a target price of Rs 376 in its research report.

"Great Offshore Limited has bagged a 3 year charter commencing end April 2009 with ONGC for three of its vessels (1 PSV and 2 AHTSVs) for operating in offshore India. The aggregate value of contract is around USD 65 million. Keeping in view a relatively stable business profile (as 75%-80% of revenues come from ONGC) and good earnings visibility on account of long term contracts, we maintain 'BUY' on Great Offshore with target price of Rs 376. At our target price, GOFF would trade at 6.1x FY10 earnings, and at 0.6x of its NAV," says Reliance Money's research report.

Sharekhan on Jindal Saw - Target of Rs 476

Sharekhan has maintained its buy rating on Jindal Saw with a price target of Rs 476 in its research report.

"Jindal Saw Ltd’s (JSL) Q4CY2008 numbers are ahead of our expectations on the back of an exceptionally strong top line. With the hive-off of the US division, the results are not strictly comparable with the same quarter of the last year. The revenues declined by 3.9% year on year (yoy) but marked a growth of 4.2% quarter on quarter (qoq) to Rs 1,548.1 crore. For the full year, the company reported revenues of Rs 5,003.3 crore and profits of Rs 342.3 crore on a stand-alone basis."

"On a consolidated level, the company has reported revenues of Rs 5,356.7 crore and net profits of Rs 326.3 crore, a little lower than the stand-alone numbers, mainly on account of losses of about Rs 15 crore incurred in Jindal Waterways. We maintain our 'Buy' recommendation on the stock with a revised price target of Rs 476 (6x CY2009E earnings)," says Sharekhan's research report.

Angel Broking on Cadila Healthcare - Target of Rs 350

Angel Broking has maintained its buy rating on Cadila Healthcare with a target price of Rs 350 in its research report.

"We believe Cadila’s R&D collaboration deal with Eli Lilly is a positive as it corroborates Cadila’s capabilities, although material cash flow would come over long term. This is Cadila's first collaborative agreement with a big Pharma company in the R&D space, which may in the long term, unlock value for it’s R&D business."

"While overdependence on Nycomed has been a major concern for Cadila, we believe that new client additions in the segment would aid de-risking and reduce the company's dependence on the same. Further, the Hospira joint venture (JV) is expected to commercialise in April 2009 and start contributing to the company's Bottom-line from FY2010. Excluding any upsides from the JVs and factoring in a decline in the Profitability of Nycomed, we expect the company to post a CAGR of 24% in Net Profit over FY2008-10E. We maintain a Buy on the stock, with a target price of Rs 350," says Angel Broking's research report.

Stock Views on Varun Shipping, Biocon, Cadila Healthcare, Great Offshore

Karvy on Varun Shipping - Target of Rs 61

Karvy Stock Broking has maintained its buy rating on Varun Shipping Company with a target price of Rs 61 in its research report.

"The timely exit from drybulk segment in FY08 where freight rates have fallen by 85% since May 2008 and entry into promising deepwater support servicessegment by acquiring high end anchor handling tugs (AHTS) are expected to help the company to grow operating profits in current turbulent time in shipping. The Company has significantly reduced cyclicality associated with the shipping industry with selection of low risk assets and building diversified fleet across three segments viz. the Liquefied Petroleum Gas i.e. LPG, crude and offshore."

"We expect consolidated revenue to increase by 2.2% to Rs 9.69 billion in FY10 and by 12.4% to Rs 10.9 billion in FY11 and net profit to decline by 10.7% to Rs 1.25 billion in FY10 and increase by 42.2% to Rs 1.77 billion in FY11. We maintain our valuation at 30% discount to NAV with target price of Rs 61 and maintain Buy rating," says Karvy Stock Broking's research report.

IIFL on Biocon - Target of Rs 181

IIFL has maintained its buy rating on Biocon with a price target to Rs 181 in its research report.

"Our recent meeting with Biocon’s management persuades us that the company is stable and growing, notwithstanding the large forex losses that it suffered in FY09 and those that we believe it will continue to suffer to a lower extent for 3-5 years. The biosimilar insulin opportunity in the regulated markets could provide significant upside over the next 3-4 years. The company plans to launch biosimilar insulin in Europe in 1HCY11 and its big pharma partner is making headway towards a launch in the US. Earnings in 4QFY09 will again likely be weighed down by a large forex item, but such losses would be significantly lower thereafter. The stock’s current valuation a PE of 9x on core FY10ii earnings is attractive, in our view. We maintain BUY and raise our price target to Rs 181," says IIFL's research report.

Sharekhan on Cadila Healthcare - Target of Rs 372

Sharekhan has maintained its buy rating on Cadila Healthcare with a price target of Rs 372 in its research report.

"Zydus Cadila (Zydus) has signed a new collaborative drug discovery and development deal with US-based Eli Lilly to develop drugs focusing on the area of cardiovascular diseases. As per its earlier deals with Piramal Healthcare, Jubilant Organosys and Suven Life sciences, Eli Lilly has adopted a similar approach and will pay Zydus for finding new drug candidates and taking them to mid-stage trials, at which point Eli Lilly will have the option to step in and licence the most promising therapies."

"We maintain our positive stance on Zydus, given the strong traction across its business segments. The strong traction in the domestic and the US businesses, and the increasing visibility of the business from the Hospira joint venture reinforce our view on Zydus’ continued growth prospects. We reiterate our Buy recommendation on Zydus with a price target of Rs 372," says Sharekhan's research report.

Stock Views on Bank of Maharashtra, Kirloskar Oil Engines, Glenmark Pharma

Bonanza on Bank of Maharashtra - Target of Rs 25
Bonanza has recommended a buy rating on Bank of Maharashtra with a target of Rs 25 in its research report.


"Bank of Maharashtra is a mid-sized PSU bank, with branches concentrated in Western India. Bank has controlled its NPA very well. Its NPA levels are at 0.82%. The bank enjoys high CASA of about 38%. Investors can Buy with a target of Rs 25 i.e. about 3PE based on FY09 EPS of Rs 8.23," says Bonanza's research report.


Reliance Money on Kirloskar Oil Engines - Target of Rs 69


Reliance Money has recommended a buy rating on Kirloskar Oil Engines with a target price of Rs 69 in its research report.

"Kirloskar Oil Engines Ltd (KOEL) has announced the demerger of Engine and Auto Component business of the Company into Kirloskar Engines India Ltd (KEIL). In our earlier report dated 28th January 2009 we mentioned that demerger of investments on the books would be beneficial for the investors as it would reflect fair value of core business. In continuation of the same view and considering the potential upside of its strategic investments made in various group and associate companies, we believe after the de-merger KOEL stock to trade at 1x of book value Rs 25."

"We believe the industry would revive only after the increase in capex by these respective user industries. Considering the outlook on the industry and company we estimate the value of KEIL to be around Rs 44. We estimate ROCE of KEIL to be 28% for FY09E which is considerably higher compared to ROCE of 16% for FY09E. We upgrade our recommendation on the back of announcement of demerger of its core business (engines and auto components) into separate company to BUY with a target price of Rs 69 which offers an upside of 23% from current level," says Reliance Money's research report.


Sharekhan on Glenmark Pharma - Target of Rs 270

Sharekhan has recommended a buy rating on Glenmark Pharma with a price target of Rs 270 in its research report.

"Glenmark has borne the brunt of the ongoing economic and financial crises that have resulted in a slowdown in its business across international geographies. The company has been hit by several negative developments right from the failure of GRC 6211, concerns over its ability to meet guidance, uncertainty over outlicensing income and the policy to refrain from providing guidance. Despite the recent disappointments, we continue to like Glenmark’s business model, which is focused on differentiated niche products."

"We remain confident about Glenmark’s future prospects, both in relation to the scaled-up potential of its core generic and branded formulation businesses and its ability to monetise and extract value out of its R&D assets. We upgrade our recommendation on the stock to a Buy with a price target of Rs 270 (12x FY2010 core earnings for base business plus Rs 60 per share for the R&D pipeline)," says Sharekhan's research report.

Stock Views on Piramal Healthcare, Gujarat Industries Power

Angel on Piramal Healthcare - Target of Rs 340

Angel Broking has maintained its buy rating on Piramal Healthcare with a target price of Rs 340 in its research report.

"Piramal Healthcare (PHL) has announced that it would be discontinuing its Pharma Solution operations at the low-Margin Huddersfield facility in UK. We believe given the near-term hiccups in the CRAMS space it is a prudent decision taken by the company to control costs. However, Revenue from the existing contracts at Huddersfield that would be shifted to the other facilities would take some time to kick in as the validation and stability studies are still proceeding."

"Over the long term, we expect the Pharma Solution business to drive the company's growth on the back of robust product pipeline with twenty-seven Innovators' products at Phase III (as of 1HFY2009), of which two are at advanced stages with a likely launch by FY2011. However for FY2010E, we have factored in a de-growth of 7% for the Pharma solution business and have not taken any EBITDA Margin expansion resulting into an upside risk if the company improves its EBITDA margin on account of restructuring. We maintain a 'Buy' on the stock, with a target price of Rs 340," says Angel's research report.

Bonanza on Gujarat Industries Power - Target of Rs 54

Bonanza has recommended a buy rating on Gujarat Industries Power Co. with a price target of Rs 54 in its research report.

"Gujarat Industries Power Co., GIPCL is a small Gujarat Govt.PSU with capacity of 557 MW presently, to be expanded to 807 MW by Q2 FY10. There is long term visibility in Power sector in India. Country is likely to remain power deficit for next few years. Company is likely to show fall in bottom line in FY09, compared to FY08, however, once the new capacity starts in next 4months, a sharp jump in results can be seen in FY10."

"Currently, it is trading at very attractive Market cap/Sales ratio of 0.6 times. The company is expanding its capacity by 50% in next 4 months, which gives good potential for future performance. Presently, it is at an attractive dividend yield of 6%. "Buy", price target of Rs 54," says Bonanza's research report.

Emkay Global on Piramal Healthcare - Target of Rs 261

Emkay Global Financial Services has recommended a buy rating on Piramal Healthcare with a target price of Rs 261 in its research report.

"In a bid to improve operating performance of its Pharma Solution (CMG) business, Piramal Healthcare is re-aligning its CMG assets by closing down its Huddersfield facility. Company will take one time hit of Sterling pound 10.1mn in FY09 itself. Company will be shifting these contracts to Digwal (India) and Morpeth (UK) facilities. Management has indicated that this restructuring will enable them to improve the operating margins of its Pharma Solution business by 6 to 8 ppt from FY10E itself.

"We view the restructuring of its Pharma Solution business as long term positive for the company. We have revised our revenue and earning estimates downward because of these restructuring. We have downward our revenue estimates by 11% and 11% and earnings estimates by 9% and 8% for FY10E and FY11E respectively. On the back of downward revision in earnings, our target price has been revised downward by 13% to Rs 261, Buy," says Emkay Global Financial Services' research report.

Stock views on Shree Cement, Dishman Pharma,

Sharekhan on Shree Cement - Target of Rs 825


Sharekhan has maintained its buy rating on Shree Cement with a price target of Rs 825 in its research report.

"Shree Cement has commissioned clinker manufacturing Unit VII of 1MMT capacity at Bangur City, Ras in Pali district of Rajasthan at a capital investment of Rs 200 crore. In order to account for higher realisation and better than expected volumes, we are upgrading our earnings estimates for FY2009 and FY2010. The net profit for FY2009 and FY2010 is revised upwards by 4.3% and 11.6% to Rs 479.9 crore and Rs 291 crore respectively. We have been bullish on cement sector since the past four months with Shree Cement as one of our top picks. The stock has appreciated by over 45% since our last update on January 30, 2009. We maintain our Buy call on the stock with a revised 12-month price target of Rs 825 (EV/tonne of USD 70 on expanded capacity)," says Sharekhan's research report.


Reliance Money on Dishman Pharma - Target of Rs 185


Reliance Money has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a target price of Rs 185 in its research report.

"Dishman Pharmaceuticals & Chemicals Ltd (Dishman), is setting up a Rs 350 million US FDA and MHRA approvable drug formulation unit at the Bavla plant in Gujarat. On the similar lines, the company has assigned one of its other plants to meet the requirements of AstraZeneca’s 14 API supply agreement. Another, two plants have been visited by large MNC pharma companies like GSK, Pfizer, Novartis and have expressed their interest in entering into manufacturing contracts going forward."

"With the increasing number of contracts and various capacity additions, augers well for Dishman to derive stronger revenue growth going ahead. Hence, looking at the robust future outlook for CRAMS operations, we retain our top pick rating on Dishman Pharma in CRAMS space and accordingly maintain our BUY recommendation on Dishman Pharma with target price of Rs 185," says Reliance Money's research report.


Karvy on Andhra Bank - Target of Rs 74


Karvy Stock Broking has maintained its buy rating on Andhra Bank with a price target of Rs 74 in its research report.

"We revise Andhra Bank's FY10 estimates mainly to factor in higher NPAs and restructured loans and much higher credit costs. Also incrementally, for FY10 we marginally reduce our estimates for fee income and increase operating overheads. For FY10, we reduce our earning estimates by 11.3% to Rs 5.24 billion from our earlier estimates of Rs 5.9 billion and reduce price target by 14.9% to Rs 74. We maintain our BUY rating on the stock; based on our target price the stock would trade at 1.05x adjusted book value FY10," says Karvy Stock Broking's research report.

Stock Views on Petronet LNG, SKF India, Piramal Healthcare

PINC Research on Petronet LNG, target of Rs 66

PINC Research has recommended a buy rating on Petronet LNG Ltd with a price target of Rs 66 in its research report.

"Petronet LNG Ltd. (PLL) accounts for 23% of natural gas supply of India and boasts of a sovereign parentage of GAIL, IOCL, ONGC and BPCL. Considered as an Indian pioneer in import distribution, it regasifies 6.5 million mtpa of imported LNG from its facility in Dahej, Gujarat and is a major supplier to GAIL’s HVJ gas pipeline. The capacity expansions at Dahej should enable PLL volume growth by 13% in FY10 to 7.4 million mt and 24% in FY11 to 9.2 million mt garnering scale in earnings. Hence we initiate coverage on the stock with a ‘BUY’ recommendation and a price target of Rs 66 on a 24 month investment perspective," says PINC's research report.


LKP Shares on SKF India, target of Rs 190

LKP Shares has recommended a buy rating on SKF India with an 18-month price target of Rs 190 in its research report.

"SKF India is the 53.5% subsidiary of the Swedish bearing giant and is the largest bearing producer in India. It derives 90% of its revenues from bearings comprising of ball and hub bearings, deep groove ball bearings, cylindrical roller bearings and tapered roller bearings. The balance 10% of revenues comes from its four new technology platforms like seals, lubrication systems, mechatronics and services. SKF India being the industry leader controls a 30% share in the Rs 50 billion bearing market in India."

"SKF India with a strong balance sheet trades at 7xCY'09E and 5.7xCY'10E and we believe that a 15% correction in the stock price from current levels would be a good opportunity for gaining an entry into the stock with an 18-month price target of Rs 190. Over a longer time frame a revival in its key user industries could propel the stock to Rs 240 over a two-year time frame. 'Buy'," says LKP Shares' report.


Sharekhan on Piramal Healthcare, target of Rs 358

Sharekhan has maintained its buy rating on Piramal Healthcare with a price target of Rs 358 in its research report.

"In an effort to reduce costs and restructure its assets in a more efficient manner, Piramal Healthcare (Piramal) has decided to shut down its custom manufacturing facility at Huddersfield, UK (a part of Avecia) and consolidate its custom manufacturing operations at its other sites at Ennore (near Chennai), Digwal (near Ahmedabad) and Morpeth, UK. Even though the closure of the UK site would lead to a onetime hit in the FY2009 financials of the company, the move is in the long-term interest of the company, as it would result in the elimination of redundancies, cost savings, efficiency in operations and an overall improvement in profitability."

"With a presence across the entire contract research and manufacturing services (CRAMS) value chain, strong customer relationships and a favourable operating environment characterised by increased outsourcing, we expect Piramal’s custom manufacturing business to perform robustly in the future. We maintain our Buy recommendation on the stock with a price target of Rs 358, " says Sharekhan's research report.

Stock Views on BHEL, Hindustan Unilever, Pfizer

Emkay on Hindustan Unilever, target of Rs 305

Emkay Global Financial Services has maintained its buy rating on Hindustan Unilever with target price of Rs 305 in its research report.

"HUL implemented price cut of 4%-20% on select brands and product categories. The price cuts are implemented either directly (20% price cut on Wheel Active Blue) or indirectly through weight changes (4.2% weight increase in Lifebuoy and 6.7% - 8.3% weight increase in Wheel Green). Considering above mentioned price cuts on select brands, total blended price reductions is approximately 1.2%. This translates into net cost saving of Rs 5,301 million compared to Rs 7,637 million earlier and additional EBITDA margin of 2.9% versus 4.1% earlier."

"Recent price reductions ratify our call that consumer staple companies will retain some savings to improve margin profile and intensify advertisement activities and utilize the balance for price reductions to benefit consumers. The recent price reduction on select brands is in-line with expectation. Despite adjusting the above price actions, HUL can implement incremental price reductions of 3.1% without impacting FY10E earnings estimates and intensify advertisement activities. Our earnings forecasts for CY09E remain unchanged at Rs 11.7/Share. We maintain our BUY rating with target price of Rs 305," says Emkay Global Financial Services' report.

IIFL on BHEL, target of Rs 2585

IIFL has recommended a buy rating on Bharat Heavy Electricals with a target price of Rs 2,585 in its research report.

"Higher-than-expected 34% YoY growth in 4Q gross revenues was reassuring after the execution slip in 3Q. However, our fears of a muted guidance for FY10 revenues came true. The 16.3% YoY growth in gross revenues implied by MoU target of Rs 320 billion under ‘Excellent’ rating is below our estimate as well as consensus. The muted guidance reflects constraints on accelerated execution, as was evident during our recent visit to a project site. We cut our FY10 and FY11 earnings estimates by 5% on lower revenue estimates. Order coverage ratio of 4.6x provides unmatched earnings visibility in the Indian capital-goods universe, but valuations, at PE of 18.7x on FY10ii and 15.5x on FY11ii, leave little room for slippages."

"Bharat Heavy Electricals’s 4Q gross revenue growth of 34% YoY helped the company beat the FY09 MoU targets by 1.8%. However, EBITDA margin likely contracted by 300bps in 4Q, against our estimate of 240bps contraction. BUY", target price of Rs 1,585," says IIFL's research report.

Hem Securities on Pfizer, target of Rs 935

Hem Securities has initiated a buy rating on Pfizer with a target of Rs 935 in its research report.

"The company has posted the compounded annual growth rate of 48.42% in bottom line in last four years and is expected to maintain its growth in coming years. The company was well placed to benefit from the growth of Indian Pharmaceutical market, that is expected to grow at 11-12%. It is expected to be valued at USD 20 billion by 2015. The stock at the current market price of Rs 597 will trade 12.27 times to its earnings of Rs 48.67 (TTM) and 1.90 times to its book value of Rs 314.52 and is expected to provide huge upside potential in long-term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 935 in the long -term investment horizon with an appreciation of 56.62%," says Hem Securities' report.

Stock Views on Micro Technologies, ESS DEE Aluminium, Britannia Industries

IIFL on Britannia, target of Rs 1765

IIFL has recommended a buy rating on Britannia Industries with a target price of Rs 1765 in its research report.

"We view the resolution of the three-year-old dispute between Britannia’s promoters, Danone and the Wadia group, as a positive development that removes a key overhang from the stock. Danone has agreed to sell its 25.5% stake in Britannia to the Wadia group. Wadia group’s shareholding in Britannia will now go up to 50.96% (from 25.48%). This was the most likely outcome of the dispute, though replacing Danone with a strategic foods player like Kraft, which is keen to enter India and has acquired Danone’s global biscuits assets (barring India) would have been more favourable to Britannia."

"Being an inter-promoter transaction, this deal will not trigger an open offer. Deal pricing is yet to be disclosed. The most positive fallout of this resolution will be an increase in the dividend payout, which at present is low at 20%. The Wadias are likely to fund the transaction through debt or via increased dividend payout in group companies. Media reports suggest that the company has secured a USD 200 million loan facility from ICICI Bank. "BUY", target price of Rs 1765," says IIFL's research report.

Sunidhi Securities on ESS DEE Aluminium, target of Rs 200

Sunidhi Securities & Finance has recommended a buy rating on ESS DEE Aluminium with a target price of Rs 200 in its research report.

"EDAL acquired a 90% stake in IFL for Rs 120 crore from Vedanta Group, making it a subsidiary. The remaining 10% stake is with Vedanta. During Q3FY09, sales have gone by 45% to Rs 103 crore whereas net profit has moved up by 11% to Rs 20.1 crore. During the 9 months of FY09, sales have gone up by 54% to Rs 333.5 crore and net profit by 31% to Rs 64.4 crore. OP & NP margin during the nine months of FY09 stood at 29.5% and 19.3% respectively against 30% and 22.7% (YoY). We recommend BUY with a target price of Rs 200," says Sunidhi Securities & Finance's report.

Sunidhi Sec on Micro Technologies, target of Rs 100

Sunidhi Securities & Finance has recommended a buy rating on Micro Technologies with a target price of Rs 100 in the medium term in its research report.

"During Q3FY09, consolidated sales have gone up by 43% to Rs 77 crore and net profit by 17% to Rs 18.4 crore. OP & NP margin during this quarter stood at 36.7% and 23.9% respectively against 41.7 and 29% (YoY). During the 9 months of FY09, sales have gone up by 65 per cent to Rs 213 crore whereas net profit has increased by 43 per cent to Rs 38.1 crore. OP & NP margins stood at 38.9 % and 25.5 against 41.5% and 29.5% respectively (Y0Y). We recommend BUY with a target price of Rs 100 in the medium term," says Sunidhi Securities & Finance's research report.

Stock Views on Man Industries

Sharekhan on Man Industries - Target of Rs 66

Sharekhan has recommended a buy rating on Man Industries with price target of Rs 66 in its report.

"Assuming a substantial discount to the average multiple, we have valued Man Industries taking the average of 5x one-year forward PE multiple and 2x one-year forward EV/EBIDTA multiple. In our valuations, we have not considered the value of its real estate portfolio as the realty business is at a very nascent stage. However, we have valued the real estate projects of the group at Rs103.4 crore (considering the group’s 58% stake in the projects) and if this value is included in our estimates the same could add about Rs 19 to the sum-of-the-parts valuations. We recommend a 'Buy' on the stock with a price target of Rs 66," says Sharekhan's report.

Stock Views on Punjab National Bank, Patel Engineering, Dr Reddys Laboratories

Prabhudas Lilladher on PNB - Target of Rs 682

Prabhudas Lilladher has upgraded its rating to accumulate on Punjab National Bank, PNB with a price target of Rs 682 in its report dated .

“Punjab National Bank’s (PNB's) Q4FY09 PAT grew by 59.2% YoY at Rs 8.66 billion. This was higher than our estimate of Rs 7.1 billion and also the market estimates, largely led by lower provisions and high treasury gains. We have discontinued giving a significant discount (Rs 40 per share for its commercial real estate exposure of Rs 60 billion). Equity capital is currently again available to real estate companies as capital markets have improved. Hence, we feel debt exposure to real estate companies should not attract any significant discounts."

"At the CMP, the stock is trading at 1.4x FY10 P/BV, 1.5X FY10E P/ABV and 6.5xFY10E P/E in-line, with its peer group banks. However, it has one of the best RoEs (>20%) and RoAs (1.2%) in the sector, the risk of continuation of current Chairman at the helm of affairs is the only pertinent non-fundamental risk that we can envisage at the current juncture. We upgrade the stock to an ‘Accumulate’ rating, with a revised price target of Rs 682," says Prabhudas Lilladher's report.

Karvy Stock Broking on Patel Engineering - Target of Rs 395

Karvy Stock Broking has maintained its buy rating on Patel Engineering with a price target of Rs 395, in its report.

"During the quarter ending March 09, we expect the company would report the net sales growth of 11.5% to Rs 8.1 billion in Q4FY09 from Rs 7.26 billion in Q4FY08. We expect EBIDTA would go up by 19.5% to Rs 1.25 billion and EBIDTA margin would improve by 100bps to 15.5% on account of higher contribution from high margin order book. We expect RPAT would go up by 36.3% to Rs 726 million."

"During the quarter, the company has bagged an order worth of Rs 7.99 billion from the Narmada Valley Development Authority for Bargi Diversion Project in joint venture with SEW Construction Ltd. The company's stake in the project would be around 60% which will translate the order inflow of Rs 5 billion. At the current market price of Rs 309, the company is trading at PER multiple of 10.2x and EV/EBIDTA multiple of 5.8x on FY10E earnings. Looking at the easing liquidity situation and expected robust order inflow post stable government; we maintain our 'BUY' rating with revised price target of Rs 395." says Karvy Stock Broking's report.

Angel Broking on Dr Reddys Laboratories - Target of Rs 765

Angel Broking has recommended a buy rating on Dr Reddys Laboratories with a target price of Rs 765 in its research report.

"For 4QFY2009, under Indian GAAP, Dr Reddy’s Laboratories (DRL) reported Net Sales of Rs 1,928.2 crore posting a growth of 52.2% yoy and ahead of our estimate of Rs 1,692.9 crore. For 4QFY2009, DRL’s Operating Margins (OPM) expanded by 974bp to 24.2% on the back of higher contribution from Sumatriptan and lower growth in SG&A expenses. For FY2009, the company reported OPM of 17.5%, up by 200bp."

"On the bourses, the stock has moved up 61.0% to Rs 636 in the last three months on the back of positive announcements pertaining to favourable judgment on Omeprazole OTC, ANDA filing of Fondaparinux and strong show on Sumatriptan in the US. For FY2011, we estimate Net Sales to post 10.5% yoy growth to Rs 7,848 crore with EBITDA Margins of 18.5% resulting in EPS of Rs 53.8 for the year. Discounting FY2011E Earnings, we have arrived at a Target Price of Rs 765 wherein Rs 741 is attributable to DRL’s base business (at 18x FY2011 EPS of Rs 41.2) and NPV of Rs 24 for its potential FTF. We recommend a Buy on the stock on the back of improving visibility in DRL’s product pipeline," says Angel Broking's research report.

Stock Views on Punjab National Bank, Bajaj Auto, ITC

Motilal Oswal on PNB - Target of Rs 721

Motilal Oswal has maintained its buy rating on Punjab National Bank with a price target of Rs 721 in its report.

"Punjab National Bank’s 4QFY09 PAT at Rs 8.7 billion was higher than our estimate of Rs 8.1 billion. We like PNB for its inherent strengths of large branch network in the cash-rich North India, strong liability side of balance sheet, higher sustainable margins, strong tier-I at 9%+ and improved asset quality. We expect momentum to slow down in loan growth and fee income. However; return ratios will remain superior with RoA at 1.3%+ and RoE at 23%+. Post 4QFY09 results, we have increased our EPS estimates by 11-12% for FY10-11. We expect PNB to report EPS of Rs106 in FY10 and Rs124 in FY11. BV would be Rs 494 in FY10 and Rs 585 in FY10. The stock trades at 1.3x FY10E BV and 6.1x FY10E EPS. We have maintained buy rating on the stock, target of Rs 721," says Motilal Oswal's report.

Angel Broking on ITC - Target of Rs 214

Angel Broking has maintained its buy rating on ITC with a target of Rs 214 in its research report.

"For 4QFY2009, ITC posted 1.1% yoy de-growth in Top-line to Rs 3,892 crore. We remain positive on ITC’s strong consumer demand profile, better pricing power, strong cash flows and its ability to channel these flows into new growth opportunities. At the CMP, the stock is trading at 15.3x FY2011E EPS of Rs 12. We maintain a 'Buy' on the stock with a target price of Rs 214. However, higher-than-expected hike in Excise Duty on cigarettes during the next Budget (we have factored in 5% hike for FY2010E) carries downside risks to our estimates," says Angel Broking's research report.

IIFL on Bajaj Auto - Target of Rs 1030

IIFL has maintained its buy rating on Bajaj Auto with a target price of Rs 1030 in its research report.

"Bajaj Auto’s operational 4QFY09 results were much better than the street’s expectations. EBITDA margin adjusted for one-off items expanded 150bps QoQ, driven by a steep decline in raw-material costs (primarily steel and aluminium) and shift in product mix towards the highly profitable 125cc+ segment. Reported PAT was lower than our estimate on account of a Rs 220 million MTM loss on forex contracts taken for hedging exports in FY10. Going forward, we expect margins to expand further to over 18%. Accordingly, we raise our EPS estimate for FY10 by 29% and for FY11 by 20%. We maintain 'BUY' with a price target of Rs 1,030, based on 13x FY10ii EPS," says IIFL's research report.

Stock Views on Federal Bank, TRF, Bharti Airtel

Motilal Oswal on Federal Bank - Target of Rs 277

Motilal Oswal has maintained its buy rating on Federal Bank with a price target of Rs 277 in its report.

"Federal Bank’s 4QFY09 results were significantly below our expectations. NII growth was lower than we had estimated, tax rate was higher than we had expected. Strong tier-I ratio, higher provision coverage, and lower C/I ratio of 35% are the bank’s key strengths. We expect Federal Bank to report EPS of Rs 33 in FY10 and Rs 39 in FY11. We estimate 14% earnings CAGR over FY09-11. RoA should remain strong at1.4% over FY09-11. However, excess capital would restrict RoE at 13%. The stock trades 7.1x FY10E EPS and 0.9x FY10E BV of Rs 277. We have maintained buy rating on the stock, target of Rs 277," says Motilal Oswal's report.


Emkay Global on TRF - Target of Rs 692

Emkay Global Financial Services has maintained its buy rating on TRF with a price target of Rs 692 in its report.


"TRF gave positive surprise in Q4FY09 with better-than expected operational performance. Its revenues grew by 41% yoy to Rs 2.4 billion led by sustained pick up in order booking in Project division, operating margins up 210 bps yoy to 15.5%, net profit growth at 55% yoy to Rs 239 million. TRF is sitting on strong order backlog of Rs 13.6 billion, up 33.5% yoy basis. There is ‘Project’ to ‘Product’ mix of 98:2, in favor of Project Orders. We revise our consolidated FY10E earnings upwards by 10.7% to Rs 104.9/Share and introduce FY11E earnings of Rs125.9/Share. We maintain our ‘BUY’ rating with revised target price of Rs 692, valuing at 6X 1-year forward PER," says Emkay Global Financial Services' research report.


Angel Broking on Bharti Airtel - Target of Rs 903

Angel Broking has recommended an accumulate on Bharti Airtel with a price target of Rs 903 in its report .

"Bharti Airtel is India's leading provider of GSM-based mobile services with 96.7 million subscribers at the end of April 30, 2009. In fact, in May, the company crossed 100 million subscribers. Bharti Airtel, in order to acquire a 49% stake in MTN Group, would have to fork out a gross of USD 6.8 billion at ZAR 86 per MTN share. On the other hand, the company would see an inflow of USD 2.9 billion from MTN Group as part payment towards purchase of a 36% post-transaction economic interest in Bharti. Thus, the net cash outflow required would be to the tune of approximately USD 3.9 billion."

"MTN Group is a South Africa-based communication service provider offering cellular-based services and business solutions. MTN has operations in 21 countries across Africa and the Middle East and is one of the largest emerging market mobile operators globally. Bharti Airtel is likely to trade volatile until the final result of the discussions between the two parties is out. Nonetheless, we believe this is a bold and necessary move being attempted by Bharti and investors would have to be patient and take a longer-term approach to reap the fruits of such a deal. We recommend an 'Accumulate' on Bharti with a target price of Rs 903," says Angel Broking's report.

Stock Views on PNB, Dishman Pharma, Bajaj Auto

Angel Broking on PNB - Target of Rs 747

Angel Broking has maintained its buy rating on Punjab National Bank with a target price of Rs 747 in its research report.

"We believe Punjab National Bank, PNB is amongst the more profitable and competitive PSBs, with relatively strong earnings growth and RoE prospects. We have a positive outlook on the bank due to its superior CASA ratio and high core income component in earnings. We believe the bank’s core competitiveness in retail deposits is underpinned by the relatively high concentration of its business in rural areas, especially in North India, that are relatively underpenetrated by other banks and we have a positive outlook on its aggressive medium-term growth thrust in these areas. At CMP, the stock is trading at 5.3x FY2011E EPS of Rs1 20.5 and 1.1x FY2011E adjusted book value of Rs 597.4. We maintain a 'buy' rating on the stock, with a revised 12-month target price of Rs 747, implying an upside of 17%," says Angel Broking's research report.

Emkay Global on Dishman Pharma - Target of Rs 213

Emkay Global Financial Services has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a price target of Rs 213, in its report.

"Amidst weak global outlook and inventory rationalization, Dishman’s FY09 numbers are ahead of our expectations. Revenue grew by 32% to Rs 10.6 billion (est. of Rs 10.4 billion) on the back of a 29% growth in CRAMS business and full year impact of Vitamin-D business. During Q4FY09, the company witnessed an EBIDTA margin expansion of 740bps to 25.2% mainly on the back of reduction in Raw material cost (down by 810 bps) and Employee cost (down by 240bps), The reduction in the raw material cost was primarily on account of higher contribution from Contract research business. Despite strong performance in FY09, management has given 15-20% revenues and earnings growth for FY10E, which is line with our estimates. We maintain our FY10E revenue and earning estimates and introduced FY11E numbers. We reiterate our 'Buy' rating with a target price of Rs 213," says Emkay Global Financial Services' research report.

Reliance Money on Bajaj Auto - Target of Rs 1080

Reliance Money has recommended a buy rating on Bajaj Auto with a target price of Rs 1080 in its research report.

"Bajaj Auto Ltd (BAL) reported Q4FY09 results which were in below our expectation. Exports revenue remained sluggish due to weak overseas markets. Forex losses also impacted net profit of the company. On the new initiative side, the company has installed an assembly plant in China and is likely to introduce KTM bikes in India by mid of FY11E. Going ahead BAL would focus on three brands ‘Bajaj, KTM and Boxer (China). BAL also said it would launch 2 new motorcycles in FY10E and expect the sales volume to go up. We estimate BAL’s earnings to grow by 28% for FY09-FY11E. We upgrade our price target to Rs1,080 and recommend a 'BUY'," says Reliance Money's research report.

Stock Views on Bharti Airtel, Dishman Pharma, Godrej Consumer

Emkay Global on Bharti Airtel - Target of Rs 952

Emkay Global Financial Services has recommended a buy rating on Bharti Airtel with a price target of Rs 952 in its report.

"Street has raised concerns on large equity issuance (57%) and subsequent EPS dilution of 8-10% in FY10/FY11 (post consolidation of 49% in MTN) which has resulted in stock price correction of 11-12%. We believe that Bharti would offer MTN, an economic interest (equity participation) of 25% in the form of 15% direct stake in Bharti Airtel and remaining through the parent resulting in equity dilution in Bharti Airtel being limited to 38% and EPS dilution to just 4.6% and 1.6% for FY10E and FY11 v/s 8-10% estimated by the street assuming 58% equity dilution. With lower EPS dilution than that expected by street, together with strong long term positives and synergies arriving out of the deal, we continue to rate 'BUY' on Bharti Airtel with target price Rs 952. We recommend investors to use the current overhang as an opportunity to buy into the stock," says Emkay Global Financial Services' report.

Hem Securities on Dishman Pharma - Target of Rs 230

Hem Securities has recommended a buy rating on Dishman Pharmaceuticals & Chemicals with price target of Rs 230 in its research report.

"The company is a leader in CRAM business amongst the largest Indian pharmaceutical companies. Moreover, in global crisis and weak economy outlook, the company performance for the financial year ended March 2009 is quite strong. Though promoters have pledged 10.60% share of their holding and 6.44% of total equity capital, the company seems to continue its growth momentum through its high revenue generating base business and seems to be extremely attractive investment opportunity in the Indian Pharmaceutical space."

"Presently, the stock is trading at Rs 184.35 which is at 10.14 times to its earnings of FY09 of Rs 18.18 and 2.65 times to its book value of Rs 69.59. Since the stock offers good investment opportunity, we ini-tiate a ‘BUY’ signal on the stock with a target price of Rs 230 in medium to long term investment horizon expecting an appreciation of about 25% from the current level of Rs 184.35," says Hem's research report."

Sharekhan on Godrej Consumer - Target of Rs 185

Sharekhan has maintained its buy rating on Godrej Consumer Products, GCPL with a target of Rs 185 in its research report.

"We believe the deal is taking place at attractive valuations for GCPL considering that the same will expand the limited product portfolio of GCPL, improve the growth profile of GSL’s products and result in higher EPS for GCPL’s shareholders. At the current market price of Rs 176 the stock trades at 19.3x its FY2010 earnings and 17.1x its FY2011 earnings (excluding GSL’s financials). We maintain our price target at Rs 185, as we await further information from the management on GSL’s operations. However, the earnings accretive nature of the deal could potentially result in a 4-5% increase in the price target to Rs 192-195. We maintain our 'Buy' recommendation on the stock," says Sharekhan's research report."

Stock Views on Ipca Labs, Moser Baer, Tech Mahindra

Karvy on Ipca Labs - Target of Rs 740

Karvy Stock Broking has recommended a buy rating on Ipca Laboratories with a price target of Rs 740 in its report.


"We have marginally upgraded our FY10 estimates despite downgrade in API exports on back of negligible intermediate revenues. The company should manage a 20 % revenue growth on a higher base of revenues compared to our estimates. We have reduced our revenue R & D estimates by factoring in additional cost of Rs 100 mn in FY 2010 compared to Rs 150 mn additional cost earlier. Due to company's hedging of 43 % of FY 10 revenues at Rs 47.5 and conversion of majority of loans to rupee loans the company would not have forex loss at current rates."

"The company has basically set off forex loans against receivables, hence the company would not be having any balance sheet losses. The stock is currently quoting at 14x FY 2009E and 7.6x FY 2010E. We revise our earnings for FY 2010 upwards by 5.2% to Rs 74.4. As a result of the re-rating and upgrade in earnings we revise our multiple from 7.4x to 10x and assign a price of Rs 740. We continue to rate the stock as a 'BUY'," says Karvy Stock Broking's report.


Fairwealth Securities on Moser Baer - Target Rs 160

Fairwealth Securities has recommended a buy rating on Moser Baer with a price target of Rs 160, in its report.

"We initiate a buy call on Moser Baer, on basis of huge potential in its PV business, stabilizing sales in Optical discs and increasing share in high margins Blu-Ray and DVD format production. Also positive Operational cash flows and stable balance sheet is a trigger for the company. Moser Baer is a potential multi bagger which can give huge returns if the technology company is betting on (Thin film PV cells) establishes itself as best cost PV cells. Company as well as experts expect PV to achieve Grid parity within next couple of years. Besides Moser Baer there are many other players in the country which are betting huge on this business like Videocon and Reliance, but Moser Baer, one of the earliest entrants into the business is likely to get maximum benefit due to its manufacturing capabilities and expertise in high end technology work. We initiate a buy call on Moser Baer, with a target price of 160. We recommend Risk averse (avoiding) investors to ignore this stock," says Fairwealth Securities' report.


IIFL on Tech Mahindra - Target of Rs 635


IIFL has upgraded its rating on Tech Mahindra to buy with a 12-month price target of Rs 635 in its report.

"Stability at Satyam's client base after a spate of client losses, Anand Mahindra and other senior management meeting with clients to assure them of business continuity and aggressive and quick cost cutting make us believe that odds are turning in favour of Tech Mahindra’s management to effect a turnaround at Satyam. Undoubtedly there are a number of risks and roadblocks on the way for steady growth to begin and potential legal liabilities are unknown. However, we believe the current valuations (including Satyam’s contribution) of <1x EV/sales and 7.5x FY11 p/e already reflect these concerns and risk /reward is in favour of Tech Mahindra. We upgrade Tech Mahindra to a 'BUY', based on 7.5x FY12ii EPS, with 12-month price target of Rs 635," says IIFL's report.

Stock Views on Rcom, Mahindra & Mahindra, Sun Pharma

Sharekhan on Sun Pharma - Target of Rs 1295

Sharekhan has recommended a buy rating on Sun Pharma, with price target of Rs 1295, in its report.

"Sun Pharmaceutical Industries (Sun Pharma)’ Q4FY2009 performance was above our expectations. The revenues for the quarter declined by 9.8% to Rs 1,134.4 crore due to lower sales in the US market (as against the high base of the nonrecurring sales of Pantaprazole in Q4FY2008), voluntary product recalls (Digoxin and associated write-offs) initiated by Caraco Pharmaceuticals (Caraco) and currency related losses."

"With Rs 3,000 crore of cash on books and with the global financial meltdown resulting in more attractive valuations for generic drug companies, Sun Pharma is scouting for other acquisition opportunities (possibly a mid-sized generic company in the USA). At the current market price of Rs 1,219, Sun Pharma is valued at 16x FY2010E fully diluted earnings. We shall review our estimates and follow this with a detailed note soon, Buy, target of Rs 1295," says Sharekhan's report.

Motilal Oswal on Mahindra & Mahindra - Target of Rs 756

Motilal Oswal has maintained its buy rating on Mahindra & Mahindra with a target price of Rs 756 in its research report.

"M&M’s operational performance for 4QFY09 was significantly better than we had expected, driven by merger of PTL and cost savings, with EBITDA margins at 11.5% and adjusted PAT at Rs 2.8 billion. The management guided 5-8% volume growth in both UVs and tractors, coupled with full benefit of raw material cost savings. We are upgrading our standalone EPS estimate for FY10 by 11.7% to Rs 37.9 and consolidated EPS estimate by 1.2% to Rs 62.6 (despite ~8% dilution related to PTL merger) to factor in benefits of PTL merger, higher volumes and cost savings. The stock trades at 10.8x FY10E consolidated EPS and an EV of 9.7x FY10E consolidated EBITDA."

"We remain positive on the core business of M&M and the accretion to its share value from its subsidiaries. The IPO of Mahindra Holidays will result in further value unlocking for the stock. The stock trades at 10.8x FY10E consolidated EPS and an EV of 9.7x FY10E consolidated EBITDA. We maintain 'Buy' with an SOTP-based target price of Rs 756," says Motilal Oswal's research report.

Motilal Oswal on Rcom - Target of Rs 350

Motilal Oswal has maintained its buy rating on Reliance Communications with a target price of Rs 350 in its research report.

"RCOM is seeking shareholders’ approval to raise funds through equity/equity-linked instruments which could result in potential equity dilution of up to 25%. As per the company, the funds would enable it to strengthen its balance sheet and equip it to participate in the upcoming 3G/Wi-Max auctions. RCOM’s shareholders have approved the scheme of arrangement for demerger of RCOM’s optic fiber division to Reliance Infratel. RCOM and its subsidiaries hold 94.5% stake in Reliance Infratel, financial investors hold 5%, while employee welfare trust holds 0.5% stake. As per RCOM’s notice convened for shareholders’ meeting, net consideration for the transfer of optic fiber assets would be Rs 67.2 billion."

"We are upgrading our March 10 target price to Rs 350 which now reflects nil discount to DCF (v/s 10% earlier) and incorporates a lower WACC of 12.8% v/s 13.5% earlier given reduced leverage concerns. Maintain 'Buy' on likely operational turnaround post recent GSM launch, and abating concerns on high leverage," says Motilal Oswal's research report.

Stock views on Sun Pharma, Ipca Labs, ITC

Motilal Oswal on ITC - Target of Rs 200

Motilal Oswal has recommended a buy rating on ITC, with price target of Rs 200, in its report.

"ITC’s stock price has reacted negatively to sharp increase in duties in the past. The stock declined by 6.1% in 2005 (10% excise increase after a gap of three years) and 17% in 2007 (imposition of 12.5% VAT and 5% increase in excise). We currently factor in 7.5% increase in excise and 4% volume growth: We are currently factoring in 4% increase in cigarette volume and 7.5% increase in excise duty. Double-digit excise duty increase will be viewed negatively by the markets, in our opinion. Expanding margins by increasing prices will not be an easy option in FY10 as cigarette prices have increased by over 25% in the last two years. Maintain Buy with target price of Rs 200," Motilal Oswal's report.

Angel Broking on Ipca Labs - Target of Rs 684

Angel Broking has maintained its buy rating on Ipca Laboratories with a target price of Rs 684 in its May 29, 2009 research report.

“Ipca, a vertically integrated company with a geographically diversified business model, has grown at a steady pace in the past posting a CAGR of 17.3% in net sales during FY2005-08 primarily driven by its Domestic Formulation Segment. Going forward, we expect the next leg of growth for the company to come from its Export Segment as it leverages its API capabilities to create a sturdy business in the Regulated and Emerging Formulations market.”
“For FY2010, management expects top-line to grow 18-20% with OPM remaining steady at 20-21% levels. On the back of the same, we have upgraded our FY2010 net sales estimates resulting in an 8% upward revision of our net profit FY2010 numbers. We have also introduced our FY2011 numbers, wherein we expect the company to post 14.1% and 23.9% rise in net sales and Profit, respectively. Overall, we expect Ipca’s net sales and Adjusted net profit to post a CAGR of 16.9% and 29.4% respectively, over FY2009-11. At Rs 547, the stock is trading at 8.0x FY2010E and 6.4x FY2011E Earnings. We believe that the stock is trading at attractive valuations compared to its historical trading band. Hence, we maintain a buy on the stock with a target price of Rs 684," says Angel's research report.

KRChoksey on Sun Pharma - Target of Rs 1352

KRChoksey has recommended a hold rating on Sun Pharmaceutical Industries with a target price of Rs 1352 in its KRChoksey's research report.

"Sun Pharma Q4FY09 performance was hit by lower sales from Caraco and the economic downturn, which resulted in a slowdown in the domestic business. Currently, the status of the Detroit facility is unchanged; however the management has indicated that if the need arises, the company could evaluate product transfer options to India from Caraco on a case-to-case basis. For FY2010, Caraco has not provided any guidance, given the uncertainty surrounding its Detroit facility and the lower exclusivity revenues."

"Going forward, we expect the slower growth in the business to continue for the next two to three quarters, due to the economic downturn and lack of new product launches from the Caraco facility that is under USFDA scrutiny. However, the company’s track record of delivering consistent and robust growth makes it the best Indian player in the generic space. With a strong balance sheet with over Rs 3,500 crore in cash, Sun Pharma is well positioned to exploit newer growth avenues. Thus we remain positive on the stock.'Hold', price target of Rs 1352," says KRChoksey's research report.

Stock views on IVRCL Infra, Colgate Palmolive, Sun Pharma

Angel Broking on Sun Pharma - Target of Rs 1526

Angel Broking has maintained its buy rating on Sun Pharmaceutical Industries with price target of Rs 1526, in its report.

"During FY2009, the company’s performance was driven by sales of the generic version of Protonix and robust growth in the Domestic Formulation Segment. However, in FY2010, owing to subdued sales from the said product, we expect moderation in the company’s overall Top-line growth and also its impact on overall Profitability."

"Without considering one-off opportunities, management has guided towards 13-15% growth in Top-line. However, we expect the company to clock Sales growth of 8.8% during the period and would monitor the company’s performance before revising our FY2010 numbers. We have also introduced our FY2011 numbers and expect the company to post 11.6% and 11.4% growth in Sales and Net Profit, respectively. On the valuation front, at Rs 1,219 the stock is trading at 16.0x FY2010E and 14.4x FY2011E Earnings, respectively. We maintain a Buy on the stock, with a Target Price of Rs 1,526," says Angel Broking's report.

IIFL on Colgate Palmolive - Target of Rs 627

IIFL has upgraded its rating on Colgate Palmolive (India) to buy from add with a target price of Rs 627 in research report.

"Colgate’s 4QFY09 results were significantly ahead of our estimate and consensus: net profit grew 38% YoY, while sales growth momentum accelerated to 16%. The revenue growth was entirely due to volumes (up 15% YoY). EBITDA margin expansion of 342bps was driven by a reduction in raw-material costs and advertising expenses. While the raw-material cost reduction (down 116bps) was expected, given declining raw-material prices, the fall in advertising expense (down 334bps) reflected lower media costs and a fall in the overall category advertising."

"We expect Colgate to sustain c15% sales growth going forward and estimate earnings will grow at a faster annualised rate of 18% (over FY09-11), led by a 90bps expansion in EBITDA margins. Besides being a strong rural play (45% of sales from rural areas), Colgate offers high volumes and earnings visibility and has one of the best capital efficiencies in the sector. We expect the stock to re-rate from hereon and raise our target multiple from 17x to 21x. Our new one-year target price is Rs 627. The stock also offers a 4.2% dividend yield. We upgrade the stock to 'BUY' from 'ADD', with a target price of Rs 627," says IIFL's research report.

Motilal Oswal on IVRCL Infra - Target of Rs 348

"Post FY09 results (earnings above estimate by 5%), we are upgrading our earnings estimates for FY10 to Rs 22.6/sh (+20.2%) and FY10 to Rs 25.2/sh (+12.7%) to factor in higher revenue growth and EBITDA margins assumptions. Maintain Buy with a price target of Rs 348/sh. We have valued core business at Rs 296/sh (13x FY10 earnings), BOT projects at Rs 30/sh (book value) and other subsidiaries at Rs 22/sh (based on the current m-cap discounts)," says Motilal Oswal's research report.

Stock views on Indraprastha Gas, HBL Power Systems, Madras Cements

Sunidhi Securities on HBL Power Systems - Target of Rs 285

"HBL Power Systems, Q3FY09, sales surged by 4% to Rs 298 crore and net profit declined by 33% to Rs 18 crore due to economic slowdown. During the nine months of FY09, sales surged by 40% to Rs 958 crore and net profit by 65% to Rs 73 crore. OP & NP margins stood at 16.6% and 7.6% respectively against 14.7% and 6.5% in FY08. We recommend 'BUY' with a target of Rs 285 in the medium term," says Sunidhi Securities & Finance's research report.

Nirmal Bang on Indraprastha Gas - Target of Rs 190

"We expect the company to earn an ROCE of 38.4% in FY10E & 40.1% in FY011E. At Rs 138.5 per share the stock is trading at a discount of 37.1% from our intrinsic price of Rs 190 per share which is 13.9x FY10E earnings & 11.4x FY11E earnings. We reiterate our 'BUY' rating on the stock with a price target of Rs 190 per share with a long term view," says Nirmal Bang's report.

Emkay Global on Madras Cements - Target of Rs 111

"Madras Cement Q4FY2009 results are sharply below our expectations primarily on account of lower than estimated topline growth, higher raw material costs and losses in the windmill division. Cement revenues increased by 20.4% yoy to Rs 6.38 billion driven by 6.8% volume growth while realizations grew by 12.8% to Rs 4027/ton. The wind power vertical registered 24.7% yoy decline in revenues to Rs 40 million consequently registering a loss of Rs 75 million."

"During the quarter, MCL entered into contract to source its international coal/pet coke requirement at USD 40-50. This is substantially lower than our estimate for FY10. With MCL importing 70% of its coal requirements, we expect significant savings on the coal cost front. We maintain our earnings estimate for MCL at Rs 18.8/ share for FY10E and are introducing FY11E estimate at Rs 18.9/share. We are increasing our valuation multiple for MCL from 5x to 6x mainly on account of lowering of discount as compared to Shree Cement and better earnings outlook on account of significant cost benefits. We are revising our price target upwards to Rs 111 and maintain our 'HOLD' rating on the stock," says Emkay Global Financial Services' research report.

Stock views on Mphasis, DLF, LIC Housing

ULJK Securities on Mphasis - Target Rs 353

ULJK Securities has recommended a buy rating on Mphasis with price target of Rs 353, in its report.

"The stock discounts the FY2010E and FY2011E earnings at 13(x) and 10.27(x) respectively. We believe that the company could benefit from the acquisition and could improve its business and financial margins. We value the company at Rs 353 per share. This price is discounting the FY2010E earnings at 17.32(x) times," says ULJK Securities' report.

IIFL on DLF - Target of Rs 488

"DLF intends to generate over Rs 35 billion via asset sales in FY10. Asset sales and receipts from DAL will sharply reduce debt in FY10. Debt reduction could be further aided if DE Shaw decides to remain invested in DAL. In such a scenario, if DLF promoters inject the entire proceeds from their stake sale in DLF into DAL, DLF’s receivables from the latter will be extinguished by end-FY10. Simultaneously, land bank rationalisation has cut land-related liabilities to only Rs 2.5 billion. We expect DLF’s borrowings to fall by Rs 80 billion by end-FY10ii, reducing interest expenses by Rs 10 billion per annum. We expect DLF to increase new launches on the back of improved liquidity. To factor in higher volumes, we have upgraded our FY10 revenue and PAT estimates by 54% and 92%. DLF is likely to register operating cash flows in excess of Rs 20 billion in FY10, enough to cover interest expenses. DLF remains our top pick in the sector."Buy" price target of Rs 488," says IIFL's research report.

IIFL on LIC Housing - Target of Rs 666

"With 8% share of the Indian housing mortgage pie, LIC Housing Finance (LIC HF) looks poised for a marketoutperforming 17-18% growth in loan book. Gross NPLs, at 1.07%, have seen a transformational 330 bps improvement since FY05, thanks to a holistic business restructuring exercise. A largely floating (96%) asset base leads to stable margins. Mainly a wholesale borrower, it is further advantaged by its priority sector status and strong parentage (LIC). Valuations, at 1.7xFY10ii P/B, are fair rather than expensive, given 24% RoE. The company plans to raise Rs 5 billion through a QIP. Our 12-month target price of Rs 666 for the stock is based on 1.7xFY11ii P/B and indicates a 23% upside from current levels. We initiate coverage with 'BUY'," says IIFL's research report.

Stock views on AIA Engineering, Mcnally Bharat Engineering, KEC International

SKP Securities on Mcnally Bharat Engineering - Target of Rs 103

SKP Securities has maintained its buy rating on Mcnally Bharat Engineering with a target price of Rs 103 in its research report.

"With an order book of Rs 2200 crore which is 2xFY09 revenues and bidding for Rs 4075 crore worth of orders we feel the company is poised to manage healthy growth rates over the next 2-3 years. Though managing the debt component will be a challenge for the compnay we believe falling raw material prices and low interest rates will aid the company in managing its debt prudently. We feel the company will be able to manage to grow at CAGR of 30-35% over the next 24 months on the basis of current order book and expected orders. We maintain a buy on the company with a target price to Rs 103/- in 15 months implying a p/e multiple of 8x FY10 earnings," says SKP Securities' research report.

FinQuest Securities on KEC International - Target of Rs 368

FinQuest Securities has recommended a buy rating on KEC International with a price target of Rs 368, in its report.

"KEC plans to expand its Railway business by entering into areas like tracking, signaling and railway platforms. We expect KEC to report an EPS of Rs 37.7 and Rs 46.3 for FY10 and FY11 respectively. Given the strong pipeline of orders, and earnings growth visibility over the next two years, we believe valuations are attractive. It is currently trading at 6.3x its FY11 EPS. We initiate coverage with a buy rating on the stock with a target price of Rs 368," says FinQuest Securities' report.

Sunidhi Securities on AIA Engineering - Target of Rs 235

Sunidhi Securities & Finance has recommended a buy rating on AIA Engineering with a price target of Rs 235, in its report.

"Although there has been some slowdown witnessed due to global factors, with the Asian hunger for metals growing, mining activity too is expected to go up. Companies have increased their exploration budgets and fresh capacities are coming up in sectors such as steel, aluminum and copper. AIAEL also expects to enter the mining segment where the market potential is 10 times bigger than cement. At the CMP of Rs 190, the share is trading at a P/E of 10.2 on FY09E and 8.4 on FY10E. We recommend buy with a target of Rs 235 in the medium term," says Sunidhi Securities & Finance's research report.

Stock views on Exide Industries, LIC Housing Finance, Thermax

Sharekhan on Thermax - Target Rs 422

Sharekhan has recommended a buy rating on Thermax, with a price target of Rs 422, in its report.

"Thermax has been witnessing slower order inflow on account of a significant cut in the capital expenditure (capex) of India Inc. Recent data shows that cement and metal sectors will be relatively much stable business environment. The revival of capex plans in these two industries in particular could strengthen the order inflows for the company in the future. Thermax' leadership in the captive power generation equipment space and its agreement for utility boiler could also provide a significant boost to its order inflows. We maintain our Buy recommendation on the stock with a revised price target of Rs 422 (12x FY2011E EPS). At the current market price the stock discounts our FY2010E EPS 13.3x and enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 6.6x," says Sharekhan's report.

FinQuest Securities on LIC Housing Fin - Target of Rs 512

FinQuest Securities has recommended a buy rating on LIC Housing Finance with a target price of Rs 512 in its research report.

"Post interest rate cuts and correction in property prices (especially in big cities), the demand for housing loans is picking up. Last two months (March and April) the disbursements grew by 42% and 34% respectively for the company which indicates strong trend. Further correction in property prices coupled with easing of interest rates will boost the demand. We expect disbursemnts to grow at a CAGR of 22% for the company over FY09-11E."

"We expect company's loan book to grow at CAGR% of 22% over FY09-FY11E led by drop in the interest rates and correction in property prices. Net interest margins are expected to remain stable at 3% despite lending rate cuts. Current valuations of 1.1x FY11 BV is attractive considering higher RoE's (26% & 27% for FY10, FY11), better asset quality and huge growth potential in the housing finance segment. We have a target price of INR 512 for the stock which is 1.3xFY11 BV. We recommend 'Buy' on the stock," says FinQuest Securities' research report.

Parag Parikh on Exide Industries - Target of Rs 72.6

Parag Parikh Financial Advisory Services has maintained its buy rating on Exide Industries with a target price of Rs 72.6 in its research report.

"Exide Industries (EIL) has reported a flat top-line growth of 1% for Q409. Net Revenues for the company stood at Rs 7,983 million v/s Rs 7,913 million for Q4 '08. With a surge in taxation, PAT for the company stood 13.6% higher at Rs 2,844 millio for FY09 v/s Rs 2,503 millio for FY08. Exide Industries had recently acquired two lead smelting plants (Tandon Metals and Leadage Alloys) which now contribute 28% of total lead requirement for the company. This captive sourcing of lead and lead alloys will have a positive impact on the company's overall margins. Maintain 'BUY' on the stock with a target price of Rs 72.6/- (16x FY10E earnings and Rs 6.3/- value of investment in ING Vysya Life Insurance)," Parag Parikh Financial Advisory Services' research report.

Stock views on Ashok Leyland, Punjab National Bank, Deepak Fertilizers

Angel Broking on Ashok Leyland - Target Rs 27

Angel Broking has maintained its accumulate rating on Ashok Leyland with a target of Rs 27.

"For 4QFY2009, Ashok Leyland (ALL) reported 52.5% yoy decline in Net Sales to Rs 1,218 crore, which was in line with our expectation of Rs 1,217 crore. Net Profit declined 70.5% yoy to Rs 53.3 crore. We estimate ALL to clock EPS of Rs1.7 in FY2010 and Rs 2.4 in FY2011. We reiterate an 'Accumulate' on the stock to play out the turn in the economic and commercial vehicle (CV) cycle, with a target price of Rs 27. Majority of the factors that drive freight demand and consequently M&HCV demand are expected to turn positive in the medium term. We expect the CV manufacturers to benefit from the expected economic recovery in 2HFY2010," says Angel Broking's research report.

IIFL on Punjab National Bank - Target Rs 754

IIFL has maintained its add rating on Punjab National Bank with a target price of Rs 754 research report.

"PNB’s 4QFY09 net profit was up 59% YoY to Rs 8,656 million, while full-year FY09 net profit was up 51% to Rs 31 billion. Rise in operating expenses and provision charges was more than offset by strong growth in interest and non-interest income. NPLs fell sharply even as the bank restructured 2.6% of its loans, taking problem loans to 4.4% as at end-FY09 from 2.7% as at end-FY08. The bank made aggressive provision for loan-loss charges, which increased 3x for full-year FY09, raising the NPL coverage to 91%, the highest in our coverage universe. We are upgrading our FY10 profit estimates by 8%, and are now forecasting 10% growth in profits. We maintain 'ADD', target price of Rs 754," says IIFL's research report.

PINC Research on Deepak Fertilizers - Target Rs 98

PINC Research has recommended a buy rating on Deepak Fertilizers (DFPCL), with a price target of Rs 98, in its report.

At the CMP, DFPCL is trading at a P/E of 6.2x and EV/EBITDA of 3.5x FY10E. Favourable fertiliser policy & expected increase in availability of gas post RIL KG basin development, augurs well for DFPCL. We maintain our ‘BUY’ recommendation with a target price of Rs 98, which implies a P/E of 7x FY10 earnings that is less than 5 years historical median P/E of 7.4x, says PINC's research report.