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.