Stock views on HCL Technologies, Rural Electrification Corporation, Subros

Emkay Global Financial Services on HCL Tech - Target Rs 330

Emkay Global Financial Services has recommended an accumulate rating on HCL Technologies with a target price of Rs 330 in its research report.


HCL Tech reported revenues of USD 607.2 million (+7.9% QoQ). Revenues in constant currency up 4% sequentially. Revenues in Applications business (+4.5% QoQ) to USD 441.5 million while IMS revenues jump up by 25.5% sequentially (included USD 7 million of pass through revenues). We are upping rating on HCL Tech to 'ACCUMULATE' with a target price of Rs 330," says Emkay Global Financial Services' research report.

Motilal Oswal on REC - Target Rs 250

Motilal Oswal has recommended a buy rating on Rural Electrification Corporation (REC) with a target price of Rs 250 in its research report.

"REC is a long-term play on India's power-sector growth. We believe the stock offers earnings growth visibility (23% PAT CAGR through FY12E) and is reasonably valued (FY11E P/BV of 1.8x against a healthy RoE of 24%+). Our target price for REC is Rs 250 (2.2x FY11E BV). We initiate coverage with a Buy," says Motilal Oswal's research report.


Sharekhan on Subros - Target Rs 42

Sharekhan has maintained its buy rating on Subros with a target price of Rs 42 in its report.

"Given the improvement in demand environment and lower base of FY2009, we expect the company to report a stellar CAGR of 38.2% in its net profit for FY2009-2011. Apart from double-digit volume growth, the earnings growth would also be aided by lower interest outgo. Consequently, we have revised our estimates sharply upwards for FY2010 and FY2011 by 12.5% and 40% to Rs3 and Rs4.2 respectively. At the current market price the stock is trading at 8.3x its FY2011E earnings and EV/EBITDA of 3.2x. We maintain 'Buy' recommendation on the stock with revised price target of Rs 42," says Sharekhan's research report.