Stock Views on Axis Bank, Pantaloon Retail, Divis Laboratories

Angel Broking on Axis Bank - Target Rs 1024

Angel Broking has maintained its buy rating on Axis Bank with a target of Rs 1024 in its report.

"At the CMP, the stock is trading at 10.2x FY2011E EPS of Rs 73.9 and 2.0x FY2011E Adjusted Book Value (ABV) of Rs 379.1. Overall, given the reasonable mid-cycle valuations, we believe a medium-term investment perspective needs to be adopted to take advantage of the imminent upturn in GDP growth. From this perspective, we retain our preference for Private Banks such as Axis Bank, in light of their stronger core competitiveness. We believe the Bank deserves premium valuations on account of its attractive CASA franchise, multiple sources of sustainable fee income, strong growth outlook and A-list management. We maintain a Buy on the stock, with a Target Price of Rs 1,024, implying an upside of 35% from current levels," says Angel Broking's research report.

Angel Broking on Pantaloon Retail - Target Rs 301

Angel Broking has recommended a buy rating on Pantaloon Retail with a target of Rs 301 in its report.

"We believe that that future growth of the organised Retailing Sector in India would be led by Value Retailing, cascading effects of which would be witnessed in the Lifestyle and Home Retailing Segments as well albeit with a lag effect. PRIL continues to be our Top-pick in the Indian Retail Sector on account of being the largest Retail player in India and having presence across most product categories and price points. We are positive on PRIL as it has been able to sustain decent growth on a Standalone YTD basis despite the apathetic economic scenario."

"At Rs 270, the stock is trading at 17.3x FY2011E Earnings and 3x FY2011E P/BV. We have valued PRIL Standalone at Rs240. We have valued PRIL's stake in FCH, HSRIL and Future Bazaar at Rs31, Rs12 and Rs18, respectively. We recommend a Buy on PRIL with a target price of Rs 301," says Angel Broking's research report.

Karvy Stock Broking on Divis Laboratories - Target Rs 1260

Karvy Stock Broking has maintained its buy rating on Divis Laboratories with a target of Rs 1260 in its report.

"Revenues for the quarter have gone up by 9.4% to Rs 2.9 billion for the quarter. This is in line with lower traction in revenues on account of slow down in growth in CRAMS business. We believe the second half would be better than the first half. Operating margins of the company would be 42 % compared to 41.5 % in the corresponding quarter of the previous year. Profits for the quarter would be up by 7 % to Rs 1010 million. Divi's Labs will be a major beneficiary of the pharmaceutical outsourcing and will see greater traction in H2 FY 2010 and FY 2011. The company had provided lower tax on account of SEZ in FY 2008 and FY 2009 to the tune of Rs 400 million. This has been on account of the amendment being valid from FY 2010 as against retrospective effect. The company will now have to provide the same in the current year. We downgrade our multiple from 15.5x to 14x on account of higher tax outgo and impact on cash flows on account of MAT. We reduce our price target by 10 % to Rs 1260 based on 14x FY 2011E. We however maintain our 'BUY' rating on the stock, “ says Karvy Stock Broking's report.