Stock views on Sasken Communication, GAIL, Patel Engg,

Angel on Sasken Communication, target of Rs 127

"Going ahead, we expect Sasken to record 8.5% and 22.6% CAGRs in its Top-line and Bottom-line, respectively, over FY2009-11E (excluding one-time items). Sasken continues to struggle to cope with the difficult business environment, and its key segment, Network Equipment Manufacturers, remains in consolidation mode. The medium-term outlook remains hazy for Sasken even as a recovery is anticipated in 2HFY2010. While the business prospects in the medium-term are a little subdued, we believe current valuations at just 3.3x FY2011E EPS adequately factor this in. We upgrade the stock to Buy from Neutral with a Target Price of Rs 127, implying a P/E of 4x FY2011E EPS," says Angel Broking's report.

Hem Securities on GAIL, target of Rs 340

"GAIL has come up with promising results for FY09. Petrochemicals contributed 11% in Sales. The petrochemical realizations are expected to be better in the future. Liquid Hydrocarbons added 19% to the Gross margins. GAIL has set a target of transmitting 94.8 MMSCMD of natural gas from domestic sources and through LNG route during FY 2009-10 under the Annual Memorandum of Understanding signed with Ministry of Petroleum and Natural Gas for performance targets for the Financial Year 2009-10."

"During the FY 2009-10, to achieve the Excellence in performance, the Company has also targeted for Gas Marketing target of around 83.2 MMSCMD. The MoU also provides for an ‘Excellent’ production target of 400 TMT of Polymers (HDPE & LLDPE - High-Density Polyethylene & Linear Low- Density Polyethylene) and 1,260 TMT of Liquid Hydrocarbons. Presently, the company is running at a P/E multiple of 13.02x to its FY09 EPS of Rs 22.28. Based on the increase in the Gas sales and LPG transmission, we recommend 'BUY' on the stock with a medium term price target of Rs 340," says Hem Securities' report.

Angel Broking on Patel Engg, target of Rs 545

We have valued Patel Engineering on SOTP methodology. We have assigned its Core Construction business a PE of 12x FY2011E EPS of Rs 36.8. Its Real Estate arm has been valued at a huge discount, using the NAV method, at Rs 103/share. In the recent past, the stock had witnessed a sharp appreciation, in line with its construction peers. We believe that, at the current levels, PE is available at reasonable valuations. At Rs 429, the stock is trading at 11.6x its FY2011E EPS of Rs 36.8, on a consolidated basis without considering its real estate venture. We recommend a Buy on the stock, with a Target Price of Rs 545," says Angel Broking's report.