Stock views on Navneet Publications, Dr Reddys Labs, Gujarat NRE Coke, Mphasis

Sharekhan on Navneet Publications - Target of Rs 59

Sharekhan has recommended a buy rating on Navneet Publications with a price target of Rs 59 in its research report.

"With the growth in publication business moderating, Navneet Publications India (Navneet) has been banking on stationery business to drive its top line growth. As a result, the revenues from the stationery business are expected to grow by 57% in FY2009 to Rs 214 crore. This is also reflected in the revenue contribution from the stationery business that has increased from 34% in FY2007 to 44% now. For Q4FY2009, we expect Navneet’s top line to grow by a robust 33.8% year on year (yoy) driven by a strong performance of its stationery business. We maintain our Buy recommendation on the stock with a price target of Rs 59," says Sharekhan's research report.

Angel Broking on Dr Reddys Labs - Target of Rs 581

Angel Broking has maintained its buy rating on Dr Reddys Laboratories with a target price of Rs 581 in its research report.

"Dr Reddy’s (DRL) has announced realigning its Global Generics strategy to focus on certain key geographies and to gradually exit some of the very small distributor driven markets. The markets that DRL proposes to exit overall contribute less than 1% to its Top-line. In addition to the US, India, Russia and CIS nations and Germany operations which already large contribute a substantial approx 90% (for 9 months December 2008) of the Global Generics revenues, the company will continue operations in 10-15 markets wherein its finished dosages sales are growing significantly. The move represents the company’s renewed focus to consolidate and grow in its key geographies. We maintain a Buy on the stock, with a target price of Rs 581," says Angel Broking's research report.

ULJK Securities on Gujarat NRE Coke - Target of Rs 37

ULJK Securities has recommended a buy rating on Gujarat NRE Coke with a target price of Rs 37 in its research report.

"Gujarat NRE Coke Ltd (GNCL) is the largest independent producer of metallurgical coke in India, having a coke manufacturing capacity of 1 Mtpa, which is getting increased to 1.25 Mtpa by March 2009. It is also the only Indian company to have acquired captive coking coal mines outside India. GNCL has already started the mining in Australian mines and is expected to produce around 1 million MT of coking coal for FY09E and slowly scale up to over 7 million MT by 2013E."

"We have valued Gujarat NRE Coke on the EV/EBITDA based methodology.The stock is presently trading at an EV of 2.4 (x) FY10E EBITDA. We have given a target EV of 3.5 (x) FY10E EBITDA and recommend a buy of Gujarat NRE Coke with a target price of Rs 37," says ULJK Securities' report.

Hem Securities on Mphasis - Target of Rs 238

Hem Securities has maintained its buy rating on Mphasis with a target of Rs 238 in its research report.

"Mphasis Limited has registered a robust growth rate over past few years. As discussed with the Company Management, we expect Applications Services and Infrastructure Technology Outsourcing to drive growth in the future. The company share is trading at a low PE of around 6.0X. We expect the company to outperform in the future and we reiterate “BUY” on the stock with a target of Rs 238," says Hem Securities' report.