Stock views on Gujarat Industries Power Co, Opto Circuits, Sesa Goa

IIFL on GIPCL - Target Rs 130

IIFL has maintained its buy rating on Gujarat Industries Power Co. (GIPCL), with 12-month price target of Rs 130, in its report.

"GIPCL’s proposed 250MW expansion has been delayed, and now the management expects to commission unit-1 in 3QFY10ii as against 1QFY10ii, which is reflected in our forecasts. At CMP, GIPCL is trading at 0.9x FY10ii BV and 10x FY10ii P/E. We maintain 'BUY', with 12-month price target of Rs 130," says IIFL's research report.


Karvy Stock Broking on Opto Circuits - Target Rs 243

Karvy Stock Broking has maintained its buy rating on Opto Circuits, with price target of Rs 243, in its report.


"We maintain our consolidated net sales and net profit estimates for FY10 of Rs 11,140 million and Rs 2,492 million respectively. Although, the company has reported EBITDA margin expansion of 235 basis points in FY09 to 31.7% over previous year, but we maintain our EBITDA margin estimates for FY10 at 28.5%. This will be on account of increase in raw material and administration & marketing cost. The stock is currently trading at a P/E of 12.5x on FY09E EPS of Rs 12.8, and 10.5x on FY10E EPS of Rs 15.2. We maintain our 'BUY' rating on the stock with price target of Rs 243 on 16x FY10E estimated earnings," says Karvy Stock Broking's report.


Reliance Money Sesa Goa - Target Rs 263

Reliance Money has recommended a buy rating on Sesa Goa, with price target of Rs 263, in its report.

"At CMP, the scrip is quoting at an EV/EBIDTA of 1.2x FY11E earnings (Revised Estimate). Considering the rightful canalizing of the cash available yielding better return over what it used to earlier and the improved pricing power due to enhanced volume at disposal, we would like to attribute a better multiple than we had put in our earlier estimates. We recommend a Buy with a price target of Rs 263 at which the scrip will quote at an EV/EBIDTA of 2x," says Reliance Money's report.