Stock Views on BHEL, Yes Bank, Balrampur Chini

Karvy Stock Broking on BHEL - Target Rs 2653

Karvy Stock Broking has recommended an outperformer rating on Bharat Heavy Electricals (BHEL), with price target of Rs 2653, in its report.

"Bharat Heavy Electricals (BHEL) is a leading power equipment manufacturer in India and a play on India's increasing power generation requirement. The capacity addition of 10,000 MW (100% of existing) by FY12 is expected to improve execution capability and drive the revenue at a CAGR of 22.3%. The net profits are expected to boost up from 540 bps margin improvement mainly on account of cost control and are expected to increase at a CAGR of 30% to Rs 68.99 bn by FY12. We believe BHEL will be outperformer considering strong revenue visibility and earnings growth along with attractive return ratios (28% for FY10-FY12). We initiate our coverage with target price of Rs 2,653 over 12 month period," says Karvy Stock Broking's report.


Hem Securities on Yes Bank - Target Rs 244

Hem Securities has recommended a buy rating on Yes Bank with a price target of Rs 244 in its report.

"Yes bank has registered a compounded growth rate of around 60% since it interception. We expect the bank to continue to grow at a high rate. We are very positive on the long term business prospects of the company and financial performance. At Current Market Price of Rs 165.05 the stock is trading at a PE of 16.15x. With expected EPS for FY10 and FY11 of Rs 17.73 and Rs 19.32 respectively, the stock is trading at a PE of 9.7x and 8.9x respectively. The price of the stock is undervalued at current level of Rs 165.05. We reiterate “BUY” on the stock with target price of Rs 244 with a medium term investment horizon. The Upside for the stock is Rs 79," says Hem Securities' report.

SKP Securities on Balrampur Chini - Target Rs 157

SKP Securities has recommended a buy rating on Balrampur Chini Mills, with price target of Rs 157, in its report.

"With the festive season round the corner, the demand for sugar is expected to go up. As the consumption is about to outweigh demand, the domestic sugar prices have already touched a 30 year high, and is projected to move up even further. BCML is well poised to substantially gain from the price rise, on account of lower contracted import cost, improved margins and better realizations. We recommend a 'BUY' on the stock with a 12 month target price of Rs 157 at 10x FY10E earnings, giving it an upside potential of 39%," says SKP Securities' report.