Stock Views on PNB, Dishman Pharma, Bajaj Auto

Angel Broking on PNB - Target of Rs 747

Angel Broking has maintained its buy rating on Punjab National Bank with a target price of Rs 747 in its research report.

"We believe Punjab National Bank, PNB is amongst the more profitable and competitive PSBs, with relatively strong earnings growth and RoE prospects. We have a positive outlook on the bank due to its superior CASA ratio and high core income component in earnings. We believe the bank’s core competitiveness in retail deposits is underpinned by the relatively high concentration of its business in rural areas, especially in North India, that are relatively underpenetrated by other banks and we have a positive outlook on its aggressive medium-term growth thrust in these areas. At CMP, the stock is trading at 5.3x FY2011E EPS of Rs1 20.5 and 1.1x FY2011E adjusted book value of Rs 597.4. We maintain a 'buy' rating on the stock, with a revised 12-month target price of Rs 747, implying an upside of 17%," says Angel Broking's research report.

Emkay Global on Dishman Pharma - Target of Rs 213

Emkay Global Financial Services has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a price target of Rs 213, in its report.

"Amidst weak global outlook and inventory rationalization, Dishman’s FY09 numbers are ahead of our expectations. Revenue grew by 32% to Rs 10.6 billion (est. of Rs 10.4 billion) on the back of a 29% growth in CRAMS business and full year impact of Vitamin-D business. During Q4FY09, the company witnessed an EBIDTA margin expansion of 740bps to 25.2% mainly on the back of reduction in Raw material cost (down by 810 bps) and Employee cost (down by 240bps), The reduction in the raw material cost was primarily on account of higher contribution from Contract research business. Despite strong performance in FY09, management has given 15-20% revenues and earnings growth for FY10E, which is line with our estimates. We maintain our FY10E revenue and earning estimates and introduced FY11E numbers. We reiterate our 'Buy' rating with a target price of Rs 213," says Emkay Global Financial Services' research report.

Reliance Money on Bajaj Auto - Target of Rs 1080

Reliance Money has recommended a buy rating on Bajaj Auto with a target price of Rs 1080 in its research report.

"Bajaj Auto Ltd (BAL) reported Q4FY09 results which were in below our expectation. Exports revenue remained sluggish due to weak overseas markets. Forex losses also impacted net profit of the company. On the new initiative side, the company has installed an assembly plant in China and is likely to introduce KTM bikes in India by mid of FY11E. Going ahead BAL would focus on three brands ‘Bajaj, KTM and Boxer (China). BAL also said it would launch 2 new motorcycles in FY10E and expect the sales volume to go up. We estimate BAL’s earnings to grow by 28% for FY09-FY11E. We upgrade our price target to Rs1,080 and recommend a 'BUY'," says Reliance Money's research report.