Stock views Jain Irrigation Systems, Patni Computer Systems, Arshiya International,

SKP Securities on Jain Irrigation - Target Rs 1228

SKP Securities is bullish on Jain Irrigation Systems and has recommended buy rating on the stock with a target of Rs 1228, in its research report.

"Jain Irrigation Systems Ltd (JISL) is a leading agri business company operating in diverse but integrated segments of agri value chain. It is the second largest manufacturer of micro irrigation systems (MIS) globally and largest in India. JISL is one of the largest manufacturers of the PE pipes and tissue culture banana plants in India. The company also has presence in hybrid and grafted plants, greenhouses, bio fertilizers and solar water heating systems." "At the current market price of Rs 841, the stock is trading at a P/E of 24x, 17x and 13x of FY10E FY11E and FY12E earnings of Rs 35.6, Rs 48.5 and Rs 64.8 respectively. We recommend BUY rating on the stock with a target price of Rs 1,228/- (46% upside) in 18 months using the SOTP method of valuation," says SKP Securities research report.

India Cap Markets on Patni - Target Rs 530

India Capital Markets has recommended accumulate rating on Patni Computer Systems with a target of Rs 530, in its research report.

"Patni Computer Systems seems to be on its path to reclaim its “lost position”, where it was ousted from, due to lack of focus & strategic outlook of the company in the past, given its history of management & promoter ownership tussle. With a massive transformation of its leadership structure and having undertaken key strategic initiatives to optimize its internal operations and strengthen its business development capabilities, Patni seems to be rightly addressing the essential priorities, for a business turnaround."

"We expect the company to grow its revenues and earnings at a CAGR of 3% and 10%, respectively, over CY08-10E. At CMP, the stock trades at a P/E of 11.5x for CY10E earnings. Despite a fair run up in stock prices, we believe at the CMP, there is still headroom for price improvement, as the stock should witness its valuation discount to its peers, narrowing. We initiate coverage on Patni with an Accumulate rating and a price target of Rs 530, says India Capital Markets research report.

Emkay Global Financial Services on Arshiya International - Target Rs 230

Emkay Global Financial Services is bullish on Arshiya International and has recommended buy rating on the stock with a target of Rs 230.

“Arshiya International (AIL) is on its way to becoming a full fledged logistics services provider by setting up its FTWZs at JNPT, Khurja & Nagpur and ramping up its railway haulage services. After firmly establishing itself as a preferred player in the highly unorganized freight forwarding business, we believe its FTWZ foray will provide it a clear first mover advantage. The company is also aggressively expanding its railway haulage segment, with 30 rakes expected to be operational by March 2011. We believe AIL has been in an investment phase for the last two years. With Phase I, where the Mumbai and Khurja FTWZs will start operations from March and July 2010 respectively, we expect AIL to enter into a high growth phase from FY10 onwards.”

“We expect the company's revenue and net profit to grow at 23% and 29% CAGR over FY09- 11E respectively. The stock trades at 17x FY10E and 8x FY11E earnings. Given its strong growth phase over the next few years and higher return ratios of the new ventures, we believe its valuations are un-demanding. We are initiating coverage on the stock with a BUY rating and a target price of Rs 230.”