Stock views on Shree Cement, Dishman Pharma,

Sharekhan on Shree Cement - Target of Rs 825


Sharekhan has maintained its buy rating on Shree Cement with a price target of Rs 825 in its research report.

"Shree Cement has commissioned clinker manufacturing Unit VII of 1MMT capacity at Bangur City, Ras in Pali district of Rajasthan at a capital investment of Rs 200 crore. In order to account for higher realisation and better than expected volumes, we are upgrading our earnings estimates for FY2009 and FY2010. The net profit for FY2009 and FY2010 is revised upwards by 4.3% and 11.6% to Rs 479.9 crore and Rs 291 crore respectively. We have been bullish on cement sector since the past four months with Shree Cement as one of our top picks. The stock has appreciated by over 45% since our last update on January 30, 2009. We maintain our Buy call on the stock with a revised 12-month price target of Rs 825 (EV/tonne of USD 70 on expanded capacity)," says Sharekhan's research report.


Reliance Money on Dishman Pharma - Target of Rs 185


Reliance Money has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a target price of Rs 185 in its research report.

"Dishman Pharmaceuticals & Chemicals Ltd (Dishman), is setting up a Rs 350 million US FDA and MHRA approvable drug formulation unit at the Bavla plant in Gujarat. On the similar lines, the company has assigned one of its other plants to meet the requirements of AstraZeneca’s 14 API supply agreement. Another, two plants have been visited by large MNC pharma companies like GSK, Pfizer, Novartis and have expressed their interest in entering into manufacturing contracts going forward."

"With the increasing number of contracts and various capacity additions, augers well for Dishman to derive stronger revenue growth going ahead. Hence, looking at the robust future outlook for CRAMS operations, we retain our top pick rating on Dishman Pharma in CRAMS space and accordingly maintain our BUY recommendation on Dishman Pharma with target price of Rs 185," says Reliance Money's research report.


Karvy on Andhra Bank - Target of Rs 74


Karvy Stock Broking has maintained its buy rating on Andhra Bank with a price target of Rs 74 in its research report.

"We revise Andhra Bank's FY10 estimates mainly to factor in higher NPAs and restructured loans and much higher credit costs. Also incrementally, for FY10 we marginally reduce our estimates for fee income and increase operating overheads. For FY10, we reduce our earning estimates by 11.3% to Rs 5.24 billion from our earlier estimates of Rs 5.9 billion and reduce price target by 14.9% to Rs 74. We maintain our BUY rating on the stock; based on our target price the stock would trade at 1.05x adjusted book value FY10," says Karvy Stock Broking's research report.