Stock Views on Dr Reddys Laboratories, Micro Technologies, HDFC Bank

Karvy Stock Broking on Dr Reddys Lab - Target Rs 925

Karvy Stock Broking has maintained its buy rating on Dr Reddys Laboratories with a target of Rs 925 in its report.

"Dr Reddys revenues for the quarter are expected to be higher by 31% to Rs 19657 million. Revenues will continue to be powered by authorised generic Imitrex. The rest of the formulations space would show lacklustre growth while PSAI business would show double digit de-growth. Gross margins will be lower than preceding quarter on account of strengthening of the rupee. Operating margins for the quarter would be higher at 13.8 % as against 10.9 % in the corresponding quarter of the previous year. The company has set a target of USD 3 bn revenue turnover and a ROCE of 25 % by FY 13. The revenue growth would be organic growth in global generics segment driven primarily by US and aided also by Europe, Russia and India. We maintain 'BUY' rating on the stock with a price target of Rs 925 based on 16x FY 2011E, “ says Karvy Stock Broking's research report

SKP Securities on Micro Tech - Target Rs 206

SKP Securities has recommended a buy rating on Micro Technologies with a target price of Rs 206 in its report.

"Micro Technologies (India) Ltd is a leading global developer, manufacturer and marketer of IT based security solutions for its clients across the globe. Product lines include the much-needed security devices, life style and support systems and web-based software. It has developed more than 200+ generic software products in security & life support systems. We believe, MTIL is the strongest player among Indian electronic/ software based security industry, led by its first mover advantage in security products/ solutions and absence of core competitor in the industry. At current market price of Rs 109/-, the stock is trading at a P/E of 1.06x of FY 11E earnings of Rs 102.82. We hereby initiate coverage on MTIL Ltd. and recommend buy rating with a target price of Rs 206/- (89% upside) in 18 months," says SKP Securities' report.

Sharekhan on HDFC Bank - Target Rs 1654

Sharekhan has maintained its hold rating on Axis Bank with a target price of Rs 834 in its report.

"In Q1FY2010, Axis Bank clocked a net profit of Rs 562 crore, up by a whopping 70.2% year on year (yoy), well ahead of our as well as street estimates. The surge in the net profit was mainly driven by strong treasury gains coupled with higher than-expected top line growth during the quarter. The net interest income (NII) grew by 29% yoy and came in at Rs 1,045.6 crore. The operating expenses grew by 30.8% yoy and 11.9% quarter on quarter (qoq) to Rs 827.8 crore on account of a sharp 44.8% y-o-y and 20.1% quarter-on-quarter (q-o-q) increase in staff expenses. At the current market price of Rs 756, the stock trades at 9.6x FY2011E EPS, 4.8x FY2011E PPP and 2.3x FY2011E adjusted BV. In view of limited upside in the stock price from the current levels, we maintain our Hold recommendation and price target of Rs 834, " says Sharekhan's report.