Stock views on Upper Ganges Sugar, Bajaj Hindusthan, Repro India

Fairwealth Securities on Upper Ganges Sugar - Target Rs 150

Fairwealth Securities has recommended buy rating on Upper Ganges Sugar with a target of Rs 150 in twelve month perspective, in its research report.

“Sector:
a) Prices at 25 cents/pound are ruling at 28 year high up by more than 80% this year but lower than their all time high of 66 cents/pounds.
b) Sugar is only commodity which is a combination of 3 in 1 industry, namely FMCG, Power and Chemical.
c) Supply is diminishing due to draught and wrong government policies in India. Demand supply mismatch stands at record high 7-10 million tonne per year.
d) Regular increase in demand year after year thereby putting a pressure on supply, resulting in adjustment of sugar prices.
e) Little scope for increasing supplies in next one year. “

“Upper Ganges Sugar & Industries growing with vision under the leadership of KK Birla Group Company, the business possesses huge management expertise. Major expansions already done to take benefit of the current bull run. Strong vision for the future. Company’s gross revenue on TTM basis grew by 40 % to Rs 479 crore in Q2FY10 as against Rs 341 crore previous year (Q2FY09). Company reported PAT of Rs 12.55 crore on TTM basis (Q2FY10) as against the loss of Rs 3.48 crore previous year (Q2FY09). Long term investors can buy above closing of 95 with a target of Rs 150," says Fairwealth Securities research report.


Karvy Stock Broking on Bajaj Hindusthan - Target Rs 252

Karvy Stock Broking has recommended outperformer rating on Bajaj Hindusthan with a target of Rs 252, in its research report.

"For full year ended on September 2009, Bajaj Hindusthan, BHL (Consolidated) reported revenue decline of 2.1% to Rs 20.25 bn mainly due to ~19% decline in sugar sales to 0.81 mn mt during the year. The average realization improved by ~22% to Rs 21 per kg in FY09. The company reported loss of Rs 82.2 mn in FY09 as compared to loss of Rs 301 mn in FY08."
"For FY10 estimates, we have revised cane cost upward by 15.6% to Rs 2,142 per mt considering increase in sugar prices and shortage of sugar cane. We have maintained our sugar sales volume estimates to 1.24 mn mt. We have changed our average sugar realization estimates upward by 6.5% to Rs 31.4 per Kg. We have revised revenue estimates by 4.5% to Rs 42.74 bn and expect the company to report profit of Rs 3.47 bn (previous Rs 3.69 bn) in FY10. The book value has been revised from Rs 264 to Rs 288 per share considering issue of 35.4 mn shares at premium of Rs 203 in July 2009. We maintain our valuation based on average of 2xBV and 11xFY10 earnings. We have revised valuation from Rs 246 to Rs 252 per share and maintain Outperformer rating," says Karvy Stock Broking research report.

Sushil Finance on Repro India - Target Rs 146

Sushil Finance is bullish on Repro India and has recommended buy rating on the stock with a target of Rs 146, in its research report.

“Repro India is an integrated print service solution provider. It prints Educational Books, Children’s Books, Catalogues & Magazines and Annual Reports. The company’s print services ranges from creative & designing, sourcing & procurement, printing & production, warehousing, assembly & dispatch to customer promotions. Repro has already built up overseas presence & Exports about 55% of its revenues. They have relationship based businesses with large publishers in UK, USA and Africa.”

“Given its strong positioning in the value added print segment, effective marketing network, efficient operations, consistently improving performance & ensuing growth from the expansion over the next 2-3 years, we expect Repro to post an APAT growth of 19% in FY10 & 25% in FY11. At the CMP, the stock trades at an attractive valuation of 4x its FY11E earnings & P/BV of 0.7x FY11E,” says Sushil Finance research report.