Stock Views on Rolta India, KS Oils, Hindustan Construction Company

Prabhudas Lilladher on Rolta - Target of Rs 240

Prabhudas Lilladher has recommended accumulate rating on Rolta India with a target of Rs 240, in its research report.

“Rolta has strengthened its IP portfolio with Geospatial Fusion, OneView, iPerspective and SOA Today, that has de-linked its model away from the linear growth model. Also, JVs with Thales Group and The Shaw Group have helped them bid for government projects and provide world-class service to its clients. We believe that solution driven growth when compared to service driven growth led by nonlinear approach to revenue momentum, would help the company sustain its margin with revenue momentum.”



Prabhudas Lilladher on KS Oils - Target Rs 88


Prabhudas Lilladher is bullish on KS Oils and has recommended buy rating on the stock with a target of Rs 88, in its research report.

“KS Oils (KSO) is a market leader in the Rs130bn mustard oil market, with 11% market share (FY09). It also has ~30% market share in branded mustard oil segment (current market size of ~Rs39bn) which is expected to grow at ~25% CAGR, going forward. By FY11, the company is expanding its mustard oil crushing capacity by ~3x (of its FY09 capacity). We believe that the multi-product brand portfolio will push KSO to capture the growing branded mustard oil market. Further, KSO is expanding ~4x of its FY09 refined oil capacity by FY11. We believe that a strong market presence in mustard oil, strong brands and rich experience in edible oil industry will help KSO capture the ~Rs600bn refined oil market in India.”

“Based on one year forward P/E, KSO is trading at a discount to its global as well as domestic peers despite having higher earnings CAGR and higher return ratios (RoE). We are positive on the stock on account of its strong edible oil market presence, its growth potential and discounted valuation. At present, stock is trading at near to lower end of its historical forward P/E band of 8x-14x. Hence, we recommend ‘BUY’ the stock,” says Prabhudas Lilladher research report.

IndiaInfoline on HCC - Target Rs 160

IndiaInfoline is bullish on Hindustan Construction Company, HCC and has recommended buy rating on the stock with a target of Rs 160, in its research report.

"On the daily chart, HCC has given a bullish breakout. A detailed analysis of the volumes of HCC reveals that maximum interest has been displayed by the traders in this stock since last week of October 2009. On Thursday, it made a convincing move above the top of the trading range. The daily momentum oscillators i.e. RSI and MACD are suggesting strength in the upmove. Keeping in mind the above-mentioned evidences, we suggest high risk traders to buy the stock between the levels of Rs 149-152 with a strict stop loss of Rs 146 for a short-term target of Rs 160."