Stock Views on IDBI Bank, Power Grid Corporation, Sintex Industries

Angel Broking on Sintex Industries - Target Rs 248

Angel Broking has maintained its buy rating on Sintex Industries with a target price of Rs 248 in its research report.

"Sintex Industries’ (Sintex) consolidated Net Sales de-grew by 9.1% to Rs 662.4 crore (Rs 728.6 crore) in 1QFY2010. Sintex’s 1QFY2010 consolidated Operating profits stood at Rs 87.4 crore. The OPM for the quarter stood at 13.2%, increasing by 50bp on a yoy basis.Going ahead, we expect the company’s business to be primarily driven by its building construction division. We like Sintex on account of its high revenue visibility in the monolithic and prefab business, where it has an order book position of around Rs 1,600 crore,

with another Rs 190 crore of fresh orders from Rural housing in the pipeline. Despite the slowdown in the auto industry, the company’s custom molding segment is expected to deliver a strong performance in the future, due to robust demand from the electrical segment."

Hem Securities on Power Grid - Target Rs 144

Hem Securities has recommended a buy rating on Power Grid Corporation, with price target of Rs 144, in its report.

"The stock at the current market price of Rs 111.05 will trade 27.65 times to its earnings of Rs 4.02 and 3.20 times to its book value of Rs 34.74 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 144 in the medium term investment horizon (5- 6 months) with an appreciation of about 30%," says Hem Securities' report.

Sharekhan on IDBI Bank - Target Rs 169

"In Q1FY2010, IDBI Bank recorded an impressive growth in its core operating profit (up 275% year on year [yoy]) on the back of marked improvement in various operating parameters (viz. year-on-year [y-o-y] improvement in margins, lower cost to income, strong core fee income growth, healthy advances growth). However, the same could not trickle down to the bottom line on account of multi-fold increase in provisioning expenses (bulk of which relates to Dabhol Power Plant) during the quarter. Consequently, the net profit growth was contained at 7.6% yoy (well below our expectation)."

"At the current market price of Rs 100, IDBI Bank trades at 5.4x FY2011E earnings per share, 2.6x 2011E pre-provisioning profit and 1.0x FY2011E price-adjusted book value. We maintain our Buy recommendation on the stock and shall return soon with a detailed analysis of the bank's Q1FY2010 performance after discussion with the management on the same, target price Rs 169, “ says Sharekhan's research report.