Stock Views on Allahabad Bank, Unitech, Torrent Power

Karvy on Torrent Power - Target Rs 270

Karvy Stock Broking has recommended a buy rating on Torrent Power with a target price of Rs 270 in its research report.

"Revenues for the quarter were up by 23.2 % to Rs 4810 million. Domestic formulations continue to outperform the industry with growth rate of 15.4 % for the quarter to Rs 1987 million. We increase our operating margins estimates from 17.6 % and 17.9 % on account of better gross margins and lower overheads in majority of the markets to 19.1 % and 19.2 % respectively for FY 10E and FY 11E respectively. We increase our EPS estimates for FY 2010 by 12.4 % to Rs 28.8 and by 13.6 % to Rs 33.3 for FY 2011E. On account of upgrade in EPS we upgrade our price target by 15 % to Rs 270 based on 8.1x FY 2011E. We continue to rate the stock as 'BUY'," says Karvy's research report.

IIFL on Unitech - Target Rs 102

IIFL has maintained its add rating on Unitech with a price target of Rs 102 in its report.

"Unitech reported revenue growth of 33.5% QoQ in 1QFY10, ahead of our estimate. PAT came in at Rs1.6 billion, after operating losses in 4QFY09. Unitech has sold 6.9m sq ft since March for a total consideration of Rs27 billion. Even more creditable is the mix of its sales—Rs18 billion from residential (5,000 apartments) and Rs9bn from commercial verticals. It has cut debt by Rs 20 billion from the proceeds of the two QIPs, asset sales and promoter warrants. It has tripled the execution staff in its pre-sold projects to accelerate deliveries. It is also rolling back prices for existing buyers in Grande in Noida and Nirvana Floors in Gurgaon; this, we believe, will boost customer goodwill. We have upgraded revenue and PAT estimates for FY10 by 13% and 12% respectively, to account for better-than-anticipated ramp-up in execution. We maintain ADD with a target price of Rs102/share, at 5% discount to 1-year forward NAV," says IIFL's report.


Bonanza on Allahabad Bank - Target of Rs 116

Bonanza has recommended a buy rating on Allahabad Bank with a price target of Rs 116 in its report.

"Allahabad Bank has shown good results in Q1 FY10. Bank’s total interest income has increased by 18%, whereas Interest Costs have gone up by 11.6%. Bank’s Gross NPA has marginally increased from Rs 1078 crore in Q4 FY09 to Rs 1093 crore in Q1 FY10. Net NPA are down from Rs 419 crore in Q4 FY09 to Rs 220 crore, as bank has recovered NPAs. Its GNPA are at 1.79% in Q1 FY10 down from 2% in Q1 FY09 and Net NPA are at 0.37% down from 0.8% in Q1FY09. The need for provisioning may go down in future. Allahabad Bank has given good results in Q1 FY10. We revise our earlier EPS estimates from Rs 23/Share to Rs 29/Share. At CMP Rs 86, it trades at 2.9 PE. Investors may 'BUY' at CMP, for a target of Rs 116 i.e. about conservative 4 PE on FY10 estimates, “ says Bonanza's research report.