Stock views on Prakash Industries, Bajaj Hindusthan, DLF

Motilal Oswal on Prakash Industries - Target Rs 285

Motilal Oswal has recommended buy rating on Prakash Industries with a price target of Rs 285 in its report.

"The company will spend Rs 33 billion over five years to nearly double its crude steel production, expand its sponge iron capacity to capitalize on iron ore integration and put up a 625MW power plant. The company's steel making capacity will increase from 550,000tpa to 1mtpa by March 2012 and its sponge iron capacity will increase from 400,000tpa to 1mtpa. Prakash Industries is extracting nearly 1mtpa of coal from the Chotia mine to feed its 100MW CPP and sponge iron kilns. Over FY09-12, we expect EBITDA to grow at 39% CAGR to Rs 7.9 bn due to raw material integration. We expect PAT growth of 40% CAGR to Rs 5.6 billion. Our target price is Rs 285 (30% upside) based on 5.5x FY12E EV/EBITDA. We initiate coverage with a Buy recommendation, says Motilal Oswal research report.

Prabhudas Lilladher on Bajaj Hindusthan - Target Rs 226

Prabhudas Lilladher has come out with a research report on Bajaj Hindusthan. The research firm has maintained accumulate rating on the stock with a target price of Rs 226.

"Bajaj Hindusthan (BJH) has started the civil work for 400MW power plant. BJH expects it to commission the plant by end of August’11. The company is expected to sale 80% of power to state government and rest on merchant trade basis. The company has applied with Government of India for coal linkage. The company is also doing due diligence for coal mine (potential reserves of 750m Tonnes) in South Africa", according to Prabhudas Lilladher.

The report also says, "With buffer stock of the government getting reduced, 3.5m tonnes out of approximately 7m tonnes for the whole year are yet to be imported. Hence, the tight demand-supply condition is expected to continue in FY10. At CMP, the stock trades at 8.7x FY10E and 20.7x FY11E. We maintain accumulate rating on the stock."


IndiaInfoline on DLF - Target Rs 415

IndiaInfoline research is bullish on DLF and has recommended buy rating on the stock with a target of Rs 415, in its research report.

"DLF has been consolidating from last week of October 2009 between the range of Rs 395-340. On Friday, the stock attempted to break past the top-end of the consolidation phase. The move was supported by strong volumes and against a weak trend in the broader indices. On observation of the daily chart we can visualize that the stock is yet to break out of the consolidation phase. DLF is now believed to be very close to an upside breakout, a development that should lead to a rapid advance towards the levels of Rs 415-430. We recommend traders to buy the stock between the levels of Rs 387-393 with a stop loss of Rs 378 for a target of Rs 415."