Stock views on Clutch Auto, Time Technoplast, Sahyadri Industries

Bonanza on Clutch Auto - Target Rs 50

Bonanza research is bullish on Clutch Auto and has recommended buy rating on the stock with a target of Rs 50, in its research report.

"Clutch Auto (CAL) is a leading Clutch & Related components maker in India. It is likely to report an EPS of Rs.5 in FY2010. At CMP, it trades at 8 PE on FY 10 estimates. On Cash EPS basis, it trades at 3.4 Cash PE on FY10 estimated Cash EPS of Rs.12/Share. Also the scrip is at steep discount to its FY 2009 Book value of Rs. 86/Share. Investors may BUY in Rs 38-40 range for a target of Rs 50 i.e. about 10 times its FY 2010 estimated EPS," says Bonanza research report.

Investment Rationale
· The replacement market is the most important segment, accounting for 47% of the sales. CAL has vast marketing pan India network of 37 marketing offices in 20 major cities.
· The Indian automobile industry is on fast revival after tough period in later half of FY09. With confidence returning in economy, CV and Capital goods sales are witnessing upward trend after almost 2 years of slow down. · Growth in Auto Industry directly benefits the Ancillary industry.
· All the major customers of CAL are witnessing strong sales growth

Hem Securities on Time Technoplast - Target Rs 70

Hem Securities is bullish on Time Technoplast's and has recommended buy rating on the stock with a target of Rs 70, in its research report.

"Time Technoplast's sound business profile is driven by technology focus, diversified product portfolio, diversified customer base and increasing scales of economies. The Company's international presence through its operations in Poland , Sharjah , Bahrain and Thailand has enabled it to de-risk the markets and its businesses. The company has reported great results for Q2FY10. The global slowdown of the economy affected export sectors the most. Fortunately, TTL does not have any dependence on exports as well. The company is running at a P/E multiple of 11.92x with an EPS of Rs.4.11 (TTM). We are positive on the company’s outlook and we recommend BUY on stock with a medium term price target of Rs 70," says Hem Securities research report.

Sunidhi Securities & Finance on Sahyadri Industries - Target Rs 125

Sunidhi Securities & Finance has recommended buy rating on Sahyadri Industries with a target of Rs 125, in its research report.

“Sahyadri Industries, (SIL) has further planned to invest in additional six wind mill, two in the state of TamilNadu and four in Rajasthan. The wind power generation in TN will be consumed by SIL’s sheet manufacturing plant at Perundurai and power generation in Rajasthan will be sold to State Utility. In the process of wind power generation, SIL also generates carbon emission reduction which may be negotiated for price in international market under Clean Development Mechanism, subject to completing formalities and obtaining certificate of carbon emission reduction as per Kyoto Protocol.”

He further added, “SIL is likely to post an EPS of Rs 33 in FY10, which would further go up to Rs 38 in FY11. At CMP, the share is trading at a P/E of 2.8x on FY10E and 2.4x on FY11E. SIL has been forming higher highs and higher lows. However, RSI indicator (in the lower window) has failed to make higher highs. The support levels are around Rs 90 and thereafter at Rs 85. The resistance on the upside is at Rs 105. A breach of this level should take the stock price to Rs130. We recommend BUY with a target of Rs 125,” says Sunidhi Securities & Finance research report.