Stock views on Bombay Rayon Fashion, Century Enka, Unichem Laboratories

Sushil Finance on Bombay Rayon Fashion - Target Rs 282

Sushil Finance has maintained buy rating on Bombay Rayon Fashion with a target of Rs 282 in its report

"Bombay Rayon Fashion Ltd. (BRFL) is one of the leading, vertically integrated textile companies in India. It has a strong presence across the entire value chain of design, yarn dyeing, weaving, fabric processing, garment manufacturing & retail and operates through 32 manufacturing facilities. BRFL has a strong presence in designer garment segment & is catering to various international brands like Zara, Guess, Next, Polkar, Warrior, Massimo Dutti, DKNY, Wrangler etc. Its exports are mainly in USA and Europe and it contributes 65% of its revenues."
"BRFL has acquired 3 business units in the past viz. UK based “DPJ Clothing”, “Leela Scottish Laces” and “LNJ Apparel”.

The acquisitions have helped in increasing capacities & expanding customer base in India & abroad. It also acquired ‘GURU’, an established high- end European retail brand. Most of its expansions has gone on stream this year and hence we expect BRFL to post a consolidated APAT growth of 34% in FY10 and 53% in FY11. At the CMP of Rs 191, the stock trades at an attractive valuation of 7.9x its FY11 earnings and P/BV of 0.7x FY11E. Buy. Target Rs 282, "says Sushil Finance research report.

Sunidhi Securities on Century Enka - Target Rs 320

Sunidhi Securities & Finance has come out with a research report on Century Enka (CEL). The research firm has recommended buy rating on the stock with a target of Rs 320, in its report
"CEL is likely to post an EPS of Rs 54.8 in FY10, which would go up to Rs 61.5 in FY11. At CMP of Rs 260, the share is trading at a P/E of 4.7x on FY10E and 4.2x on FY11E. Century Enka in its weekly chart can be seen in a clear uptrend since early-2009. The index is expected to reach its primary peak at Rs 275. The ability of the stock to sustain above Rs 275 should take it to Rs 320. We recommend buy with a target of Rs 320", says Sunidhi Securities & Finance.

Karvy Stock Broking on Unichem Labs - Target of Rs 340

Karvy Stock Broking has recommended outperformer rating on Unichem Laboratories with a target of Rs 340, in its research report.

“Unichem Laboratories has a balanced portfolio of products in the acute and chronic space. Acute therapy products comprise around 43% of the product basket whereas the remaining is contributed by chronic therapies. In the acute space the company has major products in the antibiotics space namely Ampoxin whereas in the Chronic space revenues mainly come from CVS, diabetology and CNS products. Losar group of products is the main product in the chronic space. While the chronic therapy franchise of the company has been growing, acute therapy products have witnessed stagnant sales. Though gross margins are lower in acute the ramp up can be quicker in this segment.”

“Going forward, the company intends to focus on acute products and hospital business in the next six months. The company also intends to enter gynaecology and injectables antibiotics business in the medium term. We expect the acute products business to gain traction in the near term. Unichem intends to launch 20 new products in the next 12 months which will also include nephrology products. The company is hopeful of a revenue growth of 10% for FY2010 and 10-12% for FY2011. On account of revenue traction in domestic formulations business the most profitable business segment and possible breakeven of UK subsidiary, ramp up in US business and API export business. We maintain our revenue and earnings estimates for FY 10E and FY 11E. On account of price performance in the stock we downgrade our rating on the stock to Outperformer with a price target of Rs 340 based on 8.5x FY 2011E.”