Stock Views on Allahabad Bank, Wipro, ICICI Bank

Maximus Securities on Allahabad Bank - Target Rs 105

"At the current price of Rs 75.50 the scrip discounts its estimated EPS of FY10 by 3.08x. The scrip is currently trading at a PE ratio of 4.39x and P/BV ratio of 0.68x which is at a discount of 45% and 10% to the industry average respectively. With the pick up in credit demand particularly in infrastructure and home loan segment, the business of the Bank is expected to grow at 20-21% in FY10. However NIM is likely to be affected with reduced lending rates which may affect the profitability of the Bank in the coming year. But the Banks target of 40% CASA ratio will help to maintain NIM at 2.75% at the end of FY10. With restructured accounts in the balance sheet, rise in NPAs remains a concern. However the fact that the Bank is adequately capitalized, provides cushion in case NPAs rise. We recommend a “BUY” on Allahabad Bank with a target price of Rs 105 and an investment horizon of one year," says Maximus Securities' report.

Sharekhan on ICICI Bank - Target Rs 781

"ICICI Bank’s loan book growth has decelerated sharply in the last three years with FY2009 marking the first instance of contraction in the loan book. The root cause of this decelerating trend in the loan book growth is the slowdown in the retail segment. The slowdown in the retail segment is partly due to the weakening demand and partly due to the management’s objective of re-balancing its loan portfolio following an uptick in delinquencies. At the current market price of Rs 733, the stock trades at 17x its FY2011E earnings per share (EPS) and 1.5x its FY2011E book value (BV). While we are maintaining our earnings estimates, we are revising our price target to Rs 781 based on our FY2011 estimates. We maintain our Hold recommendation on the stock,"

Bonanza on Wipro - Target Rs 500

"Wipro is the second largest IT service vendor in the Indian Market behind IBM. We expect the company to leverage its strong presence in India and continue to bag multiple contracts in the coming months, which would aid Wipro in reporting incremental revenues in the coming years. The company has bagged Six and a Half year contract worth Rs 1182 crore from Employee State Insurance Corporation. Order worth Rs 200 crore from LIC. Company bagged order from Unitech wireless executable over a period of Nine years for an undisclosed sum. Company has reported a growth of more than 28% in its topline for FY09."

"Going ahead, with orders form Indian Sector improving and Clients in US and Europe also seeking a reduction in cost and opting for out sourcing Company’s topline is expected to improve in the coming years and expansion of profit margins can also not be ruled out. At current market price the stock is trading at an earning multiple of 13.89 x for TTM EPS of 26.64. We recommend investor to gradually accumulate the scrip on dips near Rs 395 with a target of Rs 500 in the medium term," says Bonanza's report.