Stock views on Opto Circuits, Gateway Distriparks, Welspun Gujarat Stahl Roh

IIFL on Opto Circuits - Target Rs 216

IIFL has maintained its buy rating on Opto Circuits with a price target of Rs 216 in its report.

"Opto Circuits continued its growth momentum in 4QFY09, with topline and EBITDA up 77% and 105% YoY, respectively. On a QoQ basis, topline growth of 1% was marginally below our projection, but a 425bps jump in margin led to EBITDA significantly surpassing our estimates at Rs 705 million (up 16% QoQ). We estimate FY09 organic topline and bottomline growth of about 40% and believe the company will maintain the momentum in FY10 as well. The added growth opportunities from Criticare will likely bolster organic growth. We continue to believe in the large global opportunity in medical devices. We raise our FY10 and FY11 earnings estimates by 1-3%, our target price to Rs 216, and maintain 'BUY' rating," says IIFL's report

SKP Securities on Gateway Distriparks - Target Rs 135

SKP Securities has recommended a buy rating on Gateway Distriparks with a target price of Rs 135 in its report.


"Gateway Distriparks Ltd (GDL), a leading provider of port related logistics support services in India, promoted by three business groups based in Singapore and a business group in India. GDL operates container freight station on a pan India basis with strategic locations at JNPT, Chennai, Vizag and Kochi and ICDs located at Garhi Harsaru and Ludhiana. This presence enables it to cater to the West coast traffic, demand from the Northern hinterlands as well as the east coast traffic. We believe that GDL Ltd is the strongest player in CFS business, led by its strong presence and continuing growth momentum. We expect GDL to post revenue at CAGR of 18% aided largely by higher growth coming from its rail business and new ICDs capacity addition. At current market price of Rs. 92.5/-, the stock is trading at a P/E of 10.2x of FY 11E earnings and EV/EBITDA of 5.5x of FY11E. We hereby initiate coverage on GDL Ltd. and recommend buy rating with a target price of Rs 135/- (46% upside) in 12 months," says SKP Securities' report.

ULJK Securities on Welspun Guj - Target Rs 295

ULJK Securities has maintained its buy rating on Welspun Gujarat Stahl Roh with a target of Rs 295 in its report.



“Welspun Gujarat Stahl Rohren Ltd (WGSRL) is one of the biggest SAW pipe companies in Asia and one of the top 3 companies in the world with regard to the completion of challenging and extremely critical projects. For the annual year ended FY2009A, WGSRL recorded 43.7% growth in Net Sales. Net Sales for the year stood at Rs 57,395.2 million. The net profit was down by 37.3% to Rs 2,135.1 million when compared with FY 2008A. The company plans to demerge Plate cum Coil mill into a 100% subsidiary. WGSRL will own 100% of this demerged entity. We retain Buy with a target price of Rs 295 per share. At this price, the stock will discount FY2010E earnings by 14 times," says ULJK Securities' research report.