stock views on Globus Spirits, Patel Engineering, Balkrishna Industries

Sunidhi Securities on Globus Spirits - Target Rs 120

Sunidhi Securities & Finance has come out with a research report on Globus Spirits (GSL). The research firm has recommended buy with a target price of Rs 120, in its report

"GSL is in the process of acquiring Canteen Stores Department (CSD) registered brand for Rs 3 crore as it intends supplying to the Defence Services. Thus, the brand will have the requisite presence in the CSD market as well. GSL plans to simultaneously make its presence felt in the civil market too. At the CMP of Rs 93, the share is trading at a P/E of 7.6x on FY10E and 5.6x on FY11E. We recommend buy with a target price of Rs 120", says Sunidhi Securities & Finance.


Sushil Finance on Patel Engg - Target Rs 572

Sushil Finance is bullish on Patel Engineering and has recommended buy rating on the stock with a target of Rs 572 in its research report.

“Patel Engineering has a strong order book which gives clear visibility for next two years. The strong thrust on infrastructure and irrigation projects has enabled its topline to grow at a robust pace. Q2FY10 results have been in line with our estimates and hence we have retained our numbers for FY10 and FY11.”

“We have valued its core business at 10 times its FY11E core earnings. We value its BOT projects at Rs 13 per share. On the real estate front, we continue to conservatively value just the land bank at Rs 175 per share (i.e. at a 50% discount to the valuation done by M/S DTZ on a “as is where is” basis), although Patel would start booking revenues by Q3FY10. Likewise, while Patel has started investing in its power projects, since the Revenue generation will take some time, we have considered its investment in Power projects at just 1x its book value, hence, we have valued the QIP proceeds to be used for investments at Rs. 41 per share (1x its BV). On SOTP basis, we value the business at Rs 572 per share. We retain our Buy rating on the stock with target price of Rs 572,” says Sushil Finance research report.


Sunidhi Securities on Balkrishna Industries - Target Rs 550

Sunidhi Securities & Finance has come out with a research report on Balkrishna Industries (BIL). The research firm has recommended buy with a target of Rs 550 in the medium term, in its report

"BIL is likely to post an EPS of Rs 98 in FY10 and Rs 101 in FY11. At the CMP of Rs 419.50, the share is trading at a P/E of 4.3x on FY10E and 4.2x on FY11E. We recommend buy with a target of Rs 550 in the medium term", says Sunidhi Securities & Finance.

The report also says, "Balkrishna Industries stock is in a clear uptrend since March’09. It has been consistently making higher highs & higher lows. However, it is currently resting on the upsloping support trend line and forming sideways consolidation. Technically, the stock can move upto Rs 670 in the medium-term. One can keep a stop-loss of Rs 380."