stock views on Ahluwalia Contracts, South Indian Bank, J Kumar Infraprojects

Finquest Research on J Kumar Infra - Target Rs 241

 

Finquest Research is bullish on J Kumar Infraprojects and has recommended buy rating on the stock with a target of Rs 241, in its research report.

"J Kumar Infraprojects (JKIL) is a civil engineering and infrastructure development company with a primary focus on development of flyovers, skywalks, roads, bridges, airport runways, commercial and residential buildings, railway buildings, sports complexes, and irrigation projects."

"JKIL's current order book of INR 13.1 billion with an average execution period of less than 2 years and aggressive bidding provides revenue growth visibility over next two years. Currently, the company has ~INR 30 billion worth of contracts under bidding and plans to bid for contracts worth INR 40 billion and INR 60 billion in FY11 and FY12 respectively. In view of JKIL's healthy order book and superior margins, we expect the company's net profit to grow at a CAGR of 59.5% during FY09-FY11E. It is currently trading at 6.1x its FY11E EPS. We initiate coverage with a BUY rating on the stock with a target price of INR 241 (FY11E PE multiple 8x)."

Sushil Finance on South Indian Bank - Target Rs 205

Sushil Finance has recommended a buy rating on South Indian Bank, with price target of Rs 205, in its report

"South Indian Bank is a good defensive stock with conservative but dynamic management, which is aptly reflected through its loan book constituents and good NPL management. Going forward, we expect its Net Profit to grow by 30%, Advance by 23% and Deposit by 18% in FY11E. The stock currently trades at 0.9x FY11E ABV and 4.6x FY11E earnings. We believe that the stock could trade at target ABV multiple of 1.4x on back of its strong business model. Reiterate 'BUY' rating on the stock with increased target price of Rs 205," says Sushil Finance report.

Sushil Finance on Ahluwalia Contracts - Target Rs 250

 

Sushil Finance has recommended a buy rating on Ahluwalia Contracts, with price target of Rs 250, in its report

"Ahluwalia Contracts has a strong order book position and a decent order pipeline, which gives a good business visibility for next two to three years. ACIL is on track for its Common Wealth Games project and expects to complete it on time. The results for 9MFY10 were ahead of our full year estimates and hence we have upgraded our estimates for FY10, FY11 & FY12 on back of faster execution of projects. We have increased our FY10, FY11 & FY12 earnings estimates to Rs 14.5, Rs 17.8 & Rs 20.9, respectively. At the CMP of Rs 188, the stock is trading at 10.4x its FY11E & 8.9x its FY12E EPS of Rs 17.8 & Rs 20.9, respectively. We have valued ACIL at Rs 250, i.e. 12x its FY12E earnings. We change our rating to BUY on the stock with a target price of Rs 250," says Sushil Finance report.