Stock views on Shriram Transport Finance, Garware Offshore Services, Great Offshore, Simplex Infra

SKP Sec on Shriram Transport - Target of Rs 247

SKP Securities has recommended an accumulate rating on Shriram Transport Finance Corporation with a price target of Rs 247 in its research report.

"STFC registered more than 60% growth in AUM from Rs 12038 crore in FY07 to Rs 19520 crore in FY08. The growth was mainly achieved due to availability of ready funds to the company. The inflow of funds leveraged company’s brand, customer base, wide reach and strong business model. Going ahead we expect the same factors to drive the growth of AUM to Rs 37619 crore by FY11. STFC being a leader in the financing of the STOs and FTUs, the unique business model will act as a support to survive in the prevailing slowdown and restrict its losses below 2%. We value the stock at 1.50x FY 11E book value implying a price target of Rs 247 (33% upside) in 12 months and recommend accumulate rating on the stock," says SKP Securities' report.

PINC Research on Garware Offshore - Target of Rs 80

PINC Research has maintained its buy rating on Garware Offshore Services (GOS) with a price target of Rs 80 in its research report.

"GOS has timed the market well in the past with its expansion. Going forward, the outlook remains positive for the company as the newer assets should provide the necessary momentum for earnings growth. Also, the newer assets would have a better margin profile. In addition, with a diversified revenue stream to include in chartering and commission sale revenues, the revenue cycle seems relatively insulated. We maintain our 'BUY' recommendation on the stock, with a revised price target of Rs 80 over a 15 month perspective, on the back of higher earnings from new assets and prospects of vessel addition which should provide further fillip to earnings," says PINC's research report.

PINC Research on Great Offshore - Target of Rs 300

PINC Research has maintained its buy rating on Great Offshore with a price target of Rs 300 in its research report.

"GOFF is well poised to weather the slowdown in the offshore service space by having a well diversified business model, minimal capex and leverage as well as high visibility of revenues. 75% of GOFF’s fleet are contracted on long term charters thereby locking in assets for assured cash flows and enhancing revenue visibility. Also, most of its assets are contracted with ONGC, which should carry out upstream exploration irrespective of where oil prices are headed. This minimises risk of contract cancellations and guarantees revenue streams. We maintain our 'BUY' recommendation on the stock, with a price target of Rs 300 over a 15 month perspective, in light of high revenue visibility, low leverage and assured cash flows from government contracts," says PINC's research report.

Motilal Oswal on Simplex Infra - Target of Rs 296

Motilal Oswal has maintained its buy rating on Simplex Infrastructures with a price target of Rs 296 in its research report.

"In 4QFY09 ytd, Simplex has witnessed order intake of Rs 15 billion in 4QFY09, and current order book is estimated at Rs 100 billion (similar to December 08 levels), book to bill ratio of 2.2xFY09 revenues. Order intake in 4QFY09 comprises of segments like industrials, power, urban infrastructure (Delhi, Bangalore Metro etc).

We estimate earnings CAGR of 25.6% during FY09-FY11, driven by 14% revenue CAGR and lower interests cost during the same period. Maintain Buy with price target of Rs 296/sh (106% upside), based on PER of 8xFY10," says Motilal Oswal's research report.