Stock Views on Ipca Labs, Infosys Technologies, Glenmark Pharma,

Emkay Global Financial Services on Ipca Labs - Target Rs 1107

Emkay Global Financial Services has recommended a buy rating on Ipca Laboratories, with price target of Rs 1107, in its report dated December 17, 2009. The stock closed at Rs 1019.80
"We are of the view that Ipca Laboratories provides good visibility in terms of consistent CAGR growth of 20% over next few years on the back of its focus on branded formulations segment, geographical expansions in semi-regulated markets, new product launches in fast growing chronic segment and focus on European and US markets. On the back of upward revision in our FY11E earning estimates, we have raises our target price form Rs 971 to Rs 1107 (12x FY11E)," says Emkay Global Financial Services report

Angel Broking on Infosys - Target Rs 3020

Angel Broking has recommended a buy rating on Infosys Technologies, with price target of Rs 3020, in its report. The stock closed at Rs 2526.50

"Infosys has always focused on organic growth, maintaining its profitability and creating shareholders value, which the company achieved even during the global economic turmoil in FY2009. We believe the company is well poised to take advantage of the upcoming opportunities and face the challenges through its novel business plans and quality manpower.

While the Infosys management at the analyst meet did indicate that near-term pressure on IT Budgets is expected to continue, we remain confident of the fact that in-line with the global economic recovery, demand for Indian IT services will be back to the forefront and companies like Infosys stand to benefit in particular on account of the availability of talent and delivery from a low-cost base. Thus, considering the above and the increasing focus of the company on non-linear initiatives along with its strategy to focus on newer geographies and services, we remain positive on the company. In this note, we also introduce our FY2012 estimates for Infosys and roll over our target price on FY2012 basis. At the CMP, Infosys trades at 21.7x its FY2011E EPS and 18.5x its FY2012E EPS, which leaves room for further upside. Thus, we recommend a BUY on the stock with a 15-month Target Price of Rs 3,020 (Rs 2,475), valuing the stock at 22x its FY2012E EPS," says Angel Broking report.

Sharekhan on Glenmark Pharma - Target Rs 319

Sharekhan has recommended a buy rating on Glenmark Pharmaceuticals, with price target of Rs 319, in its report. The stock closed at Rs 261.35

"Glenmark has dropped 12% in the year till date (the stock has seen an upside of 21% since we had upgraded our recommendation to Buy from Hold in our report dated October 29, 2009) as compared to the BSE HC Index, which is up 66.5%, and the Sensex, which is up 71.1%. However, with the revival signs gaining visibility in the emerging markets and the domestic markets, where we have seen a staggering growth of 44.6% and 18.4% respectively in H1FY2010.

We expect the cash flow to improve, as the capital expenditure eases and the management attempts to rein in the working capital. This would allow the management to address its high leverage and return to free cash flow territory in FY2010. We believe that the risk-reward ratio is favourable for the stock at the current levels, given an improving macro outlook, which may see the growth rebound in the emerging markets, improving the working capital cycle. Given the healthy business performance expectations and favourable risk-reward ratio, we maintain our Buy recommendation on the stock with a revised price target of Rs 319 (16x FY2011E core earnings for the base business plus Rs 43 per share for the R&D pipeline). At the current market price of Rs 261, the stock trades at 15.1x FY2011E earnings," says Sharekhan report.