Motilal Oswal Views on Tata Consultancy Services, IVRCL Infrastructure, Reliance Infra

Motilal Oswal on Reliance Infra - Target of Rs 1785

Motilal Oswal has maintained its buy rating on Reliance Infrastructure with a target price of Rs 1785 in its research report.

"We expect Reliance Infrastructure to report net profit of Rs 10.5 billion (up 58.9% YoY) in FY09, Rs 9.9 billion in FY10 (down 5.4% YoY) and Rs 10 billion in FY11 (up 1.9% YoY). The stock quotes at PER of 10.5x FY09E, 11.1x FY10E and 10.9x FY11E. We arrive at a target price of Rs 785/share, comprising of: Power business Rs 90/share, Delhi business Rs 34/share, EPC business Rs 49/share, Cash and cash equivalent Rs 251/share and holding in Reliance Power Rs 361/share (20% holding company discount). Maintain Buy," says Motilal Oswal's research report.


Motilal Oswal on TCS - Target of Rs 750


Motilal Oswal has maintained its buy rating on Tata Consultancy Services with a target price of Rs 750 in its research report.

"We have revised our estimates to factor in project cancellations, adverse cross currency impact and revised INR/USD assumptions. Our INR/USD assumptions for FY10 have changed from Rs 45.6 to Rs 49.6. We model 3% volume growth and 6% pricing decline for TCS in FY10. USD revenues including CGSL are expected to rise 0.7% in FY10 (down 2.4% ex-CGSL). We cut our FY10 EPS by 6.3% to Rs 52.9 (from Rs 56.5 earlier). Stock trades at 9x FY10E earnings. Maintain 'Buy' with a target price of Rs 550 (upside of 16%)," says Motilal Oswal's research report.


Motilal Oswal on IVRCL Infrastructure - Target of Rs 184


Motilal Oswal has maintained its buy rating on IVRCL Infrastructure and Projects with a price target of Rs 184 in its research report.

"We expect IVRCL to report net profit of Rs 2.2 billion in FY09 (up 6% YoY) and Rs 2.5 billion in FY10 (up 16% YoY). The stock is trading at 7x FY09 and 6x FY10E. Maintain Buy with a price target of Rs 154/share (36.3% upside). We have valued the core business at Rs 123/share (7xFY10 earnings, 15% discount to industry average, to factor in lower tax rates due to 80IA benefits being considered), BOT projects at Rs 20/share (book value) and other subsidiaries at Rs 11/share (based on the CMP)," says Motilal Oswal's research report.