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.