Stock Views on Bharat Petroleum Corporation, Bharti Airtel, India Cements

Indiabulls Securities on BPCL - Target Rs 526

Indiabulls Securities Research has recommended a buy rating on Bharat Petroleum Corporation (BPCL), with price target of Rs 526, in its report.

"With crude oil prices hovering at around $ 70 per barrel levels, we expect the under-recoveries for PDS kerosene and domestic LPG to escalate further. However, the recent price hike in petrol and diesel prices should provide some respite to the Company. At its current market price (CMP), the stock trades at a forward P/E of 8.6x and 8.3x for FY10E and FY11E, respectively. We have revised our estimates to consider the recent developments in the sector. Based on our valuation, we have arrived at a target fair value of Rs 526, which provides an upside potential of 15.9% from the CMP. Thus, we upgrade our rating for the stock to Buy," says Indiabulls Securities' research report.

IIFL on Bharti Airtel - Target Rs 866

IIFL has maintained its buy rating on Bharti Airtel with a target of Rs 866 in its report.
"In our view, the Bharti–MTN deal is driven more by strategic considerations than by synergies. In a world where giants such as Apple and Google are invading the telco space, size will be key. Nevertheless, an analysis of savings / synergy opportunities in the proposed Bharti–MTN deal suggests that Bharti can have a gain of almost USD 3 billion. Our key assumptions are based on measures attributable to Bharti’s involvement, over and above MTN’s own cost reduction measures. These include estimates of opex and capex savings in MTN and capex savings in Bharti. We consider opex savings in Bharti attributable to this deal unlikely. The proposed deal (as the terms stand now) is not significantly earnings dilutive for Bharti even without considering synergies. Hence, we are in no hurry to reduce our TP (Rs 866); we retain 'BUY', " says IIFL's research report.

Sharekhan on India Cements - Target Rs 160

Sharekhan has maintained its hold rating on India Cements with a price target of Rs 160 in its report.

"India Cements has announced its Q4FY2009 results. For the quarter, the adjusted net profit came in at Rs 104.2 crore as against our estimate of Rs 107.8 crore. The adjusted net profit declined by 22.5% year on year (yoy). The net sales increased by 3.6% yoy to Rs 888.5 crore. The figure includes revenues from Indian Premier League (IPL), wind power and shipping businesses. The cement dispatches for the quarter fell by 5.3% yoy at 2.32 million metric tonne (MMT). The dispatches dipped mainly on account of unscheduled breakdown at Vishnupuram, Chilamkur and Yerraguntla facilities along with planned stoppage at one of the kilns at Vishnupuram facility. We maintain Hold recommendation on stock as the stock could underperform in the near term due to seasonal weakness in monsoon. We are rolling over our valuation on FY2011 and have arrived at a price target of Rs 160 (valued at EV/tonne of $72 on FY2011 capacity), " says Sharekhan's research report.