Stock Views on Nava Bharat Ventures, Jubilant Organosys, Infosys

FinQuest Sec on Nava Bharat Ventures - Target Rs 396

FinQuest Securities has recommended a buy rating on Nava Bharat Ventures, with price target of Rs 396, in its report.

"We expect realignment of business strategy to be value accretive and will lead to re-rating of the stock. We expect NBVL to be treated as Power generation utility as power will contribute 60% to topline in FY12E and the company will attain 1125 MW of power capacity by FY14E. We don't expect any expansion in Ferro alloys and sugar. Our SOTP valuation gives a target of INR 396. The company is currently trading at 4.4x and 3.0x its FY11E PE and EV/EBITDA respectively. We rate the stock as 'BUY'," says FinQuest Securities' report.

Karvy Stock Broking on Jubilant Organosys - Target Rs 210

Karvy Stock Broking has maintained its buy rating on Jubilant Organosys, with a price target of Rs 210, in its report.

"Jubilant Organosys has set a goal to grow its revenue and profit by 1.5x and 2x respectively in the next three years which will be on back of greater asset efficiency. The company has set a target of 30 % ROE for FY 2013E. We downgrade our EPS for FY 2010E by 16.3 % to Rs 18 and by 3 % to Rs 26 for FY 2011E on account of lower other income, higher interest cost, amortisation on account of foreign currency translation reserve and higher tax. We decrease our price target by 2.3 % to Rs 210 based on 8x FY 2011E. The overhang on stock does remain on account of the FCCB repayment of USD 270 mn by CY 2011. We maintain our 'BUY' rating on the stock, with price target of Rs 210," says Karvy Stock Broking's research report.

Reliance Money on Infosys - Target Rs 1985

Reliance Money has recommended a hold rating on Infosys Technologies, with price target of Rs 1985, in its report.

"In the last three odd months, most of the IT stocks had a sharp run up owing to smart rally in the domestic market, however there is not much improvement at the micro levels, nevertheless there is a marked improvement in the risk appetite and optimism towards a early 2010 recovery in the sector. We believe, Infosys with its robust business model coupled with strong margin management is well placed to take early advantage of the curve. In terms of stock price, we expect a near term correction after a sharp 28% run in the stock price in last three months. We recommend 'HOLD' on Infosys with a price target of Rs 1985, at our target price stock would be valued at 20x FY10E and 17x FY11E," says Reliance Money's report.