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.