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.