Stock views on HCL Technologies, Lanco Infratech, Glenmark Pharma

Credit Suisse on Glenmark Pharma

Credit Suisse has retained its ‘outperform’ rating on Glenmark Pharma, saying widespread investors’ unhappiness over a last moment guidance change, weak cash flows and R&D provide an opportunity to buy the stock. “The sharp drop in P/E suggests complete disbelief in estimates: the market may be implying Rs 10 FY10 (estimated) EPS, down 33% year-onyear. This ignores continued healthy growth in India and the US (together 60% of sales and 70% of Ebitda), and potential cuts in selling, general and administrative (SG&A) expenses as inefficiencies in ‘other’ markets are addressed,” the Credit Suisse note to clients said.

ICICI Securities on Lanco Infratech

ICICI Securities has retained its ‘buy’ rating on Lanco Infratech, citing visible growth in the company’s EPC order book, discounted valuations for the power portfolio and robust business model. “We expect both projects(Rajpura, Dhopave) to achieve financial closure in the next 12 months, leading to healthy addition in Lanco’s power portfolio. We estimate Lanco’s operational power capacity at 2,000 mw in the next 15 months and do not anticipate any cashflow concerns for the ongoing power projects,” the note to clients said.

Centrum Broking on HCL Technologies

Centrum Broking has assigned a ‘reduce’ to HCL Technologies, citing pressure on medium-term earnings due to recent acquisitions, and hedging losses. “HCL Tech bagged deals amounting to $1 billion in Q2FY09. However, the deals are unlikely to make a significant impact on revenues as they have a component of free transitioning,” the Centrum note to clients said.