Stock views on Indraprastha Gas, Geodesic, Gujarat Industries Power

RR Financial on GIPCL - Target Rs 160

RR Financial Consultants is bullish on Gujarat Industries Power, GIPCL and has recommended buy rating on the stock with a target of Rs 160, in its research report.

"At the current market price Gujarat Industries Power Co is trading at discount of 2011E PE multiple. We recommend BUY rating on the stock with a target price of Rs 160 (32% upside) in 12 month with DCF valuation .The mid cap stock had performed very well for the past one month . We remain positive on the domestic Power industry as we expect it to grow in line with the country’s GDP growth. India’s peak power demand in excess of 11%, gives substantial opportunity to players like GIPCL. The company’s expansion plans are also on track, which we believe will help it continue on growth path ahead. The Gujarat Industries Power Company Ltd has the advantage of the backing of the Govt. of Gujarat (GOG) while at the same time full functional freedom is given to it.," says Bonanza research report.


Bonanza on Geodesic - Target Rs 130

Bonanza research has recommended accumulate rating on Geodesic with a target of Rs 130, in its research report.

"Geodesic Ltd has a niche product line. The company has reported near 100% CAGR in top line and bottom-lines over the past five years. The company has increased its top line by acquiring companies and increasing its portfolio of products. It has also ear marked FCCB funds for more such acquisition abroad that would further fuel its top line and bottom-line. The company has announced that it would soon acquire a social networking company and the deal is in finalization stage. Company is also planning to set up a small facility for manufacturing Simputer in Roorkee. Company has worked on many e-governance pilot projects and hopes to bag orders from the government for the same. Company has been focusing on developing economies such as China and Latin America as new target markets with good growth potential. Company also plans to increase the dividend payout in the coming years."

"However, the company management has stated that pricing pressure for its products exists. We have estimated that company would report a growth of nearly 11% in its top line but pricing would continue to drag the bottom line for FY10. We expect the company to report growth in bottom-line FY11, fueled by new product launch and additional acquisitions. At current market price of Rs95 the company is trading at a forward earning multiple of 4.17x for Consolidated EPS of 22.79 in FY10. We recommend investors to accumulate the stock at Rs 100 for a target of Rs 130 in twelve months time. However, due to market volatility a downside of 10-15% cannot be ruled out from the recommended range," says Bonanza research report.

Hem Securities on Indraprastha Gas - Target Rs 240

Hem Securities has recommended buy rating on Indraprastha Gas with a target of Rs 240, in its research report.

“With forthcoming Commonwealth Games 2010 and ambitious plan to expand company’s CNG Station coverage, greater focus by Delhi Government on reduction of pollution, robust capex plans through internal accruals and business opportunities from business expansion in NCT and CGD operations will drive the growth momentum in coming future. Further, the compnay expects to touch turnover of Rs.1250- Rs.1300 crores in the coming year. In wake of such growth, Indraprastha Gas Ltd. seems to be extremely attractive investment opportunity.”

“Presently, Indraprastha Gas is trading at Rs 183 which is at 14.85 times to its earnings and 3.75 times to its book value of Rs 48.82. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 240 in medium to long term investment horizon expecting an appreciation of about 31% from the current level of Rs 183,”says Hem Securities research report.