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.