Stock Views on Sadbhav Engineering, Tata Tea, ITC

Angel Broking on Sadbhav Engineering - Target Rs 774

Angel Broking has recommended a buy rating on Sadbhav Engineering, with price target of Rs 774, in its report.

"We value Sadbhav Engineering on a SOTP basis to capture the long-term value creation from its BOT Segment. Considering a CAGR of 22.1% in the top-line over FY2009-11E (on the back of a strong Order Book), cooling commodity prices (leading to an improvement in the Margins), rolling over to FY2011 numbers and re-rating of the assigned P/E (10x in place of the 8x assigned earlier, on the back of an overall re-rating of the Sector), we are upgrading the stock to a 'Buy' from 'Neutral', with a SOTP target price of Rs 774, implying a potential upside of 19% from its current levels. Our SOTP target price is achieved by assigning a P/E multiple of 10x on its FY2011E Earnings of Rs 62.1 and by valuing its BOT Project of Rs 200 crore at Rs 153/share (at an implied P/BV of 1x)," says Angel Broking's report.

Sharekhan on Tata Tea - Target Rs 853

Sharekhan has recommended a buy rating on Tata Tea with a target price of Rs 853 in its research report.

"Tata Tea’s Q4FY2009 numbers (derived from FY2009 and M9FY2009 numbers) are below our expectations. The top line grew by 9.4% year on year (yoy) to Rs 1,226.1 crore in Q4FY2009, which is below our expectation of Rs 1,319.7 crore for the quarter. At the current market price the stock trades at 8.7x FY2010E earnings per share of Rs 64.0. We shall revisit our estimates for FY2010 and introduce FY2011 estimates after our interaction with the management. We maintain our 'Buy' recommendation on the stock, target of Rs 853," says Sharekhan's research report.

Nirmal Bang on ITC - Target Rs 250

Nirmal Bang has recommended a buy rating on ITC with a target price of Rs 250 in its research report.

"At the CMP , the stock is currently trading at a PE of 17.1x FY10E & 14.6x FY11E, which looks quite attractive when compared to the peers in the industry. The FMCG segment as a whole trades at an Average PE of around 24x earnings. ITC historically has traded in the PE range of 21x to 27x with an average PE of around 24x.We recommend a 'BUY' rating on the stock with a Price target of 250 per share (PE of 22x FY10E) an upside of 29% over a period of one year," says Nirmal Bang's research report.