Stock views on Binani Cement, Kalpataru Power Transmission, Sunil Hitech Engineers

ULJK Securities on Sunil Hitech - Target Rs 282

 

ULJK Securities has initiated buy rating on Sunil Hitech Engineers with a price target of Rs 282 in its report.

The Planning Commission has targeted 78700 MW of capacity addition by 2012 out of which around 60000 MW will be thermal power, which is the key area of operations of Sunil Hitech Engineers (SHEL). SHEL is moving up in the value chain and is capable and prequalified for executing BOP works on an individual basis. SHEL is now prequalified to bid for a 500 MW BOP project.  SHEL enjoys a strong order book of about Rs. 2062 cr, which leads to a revenue visibility for next three years. SHEL has a good track record in project execution. SHEL having good execution capabilities and a robust order book, we see the stock has a potential upside with a very low downside risk at its current price of Rs 198. We have initiated a coverage on SHEL with a BUY recommendation for a target price of Rs 282, "says ULJK Securities research report.

Karvy Stock Broking on Kalpataru Power Transmission - Target Rs 1292

 

Karvy Stock Broking has given a buy rating on Kalpataru Power Transmission, with a price target of Rs 1292, in its report

"Though we incorporated above motioned revision in our earning estimates, we retain our valuation multiples for Kalpataru Power Transmission standalone as 16x on FY11 and 10x on FY11 for JMC projects. Therefore, we arrive at a target price of Rs 1332/share, marginally lower over previous target. However, owing to recent fall in stock price, we revise our rating on KPTL from Outperfomer to BUY. Currently KPTLconsolidated entity (along with JMC projects) is trading at 17x on FY10 and 12x on FY11 earnings. Effectively, our target price will be 15.5x on FY11 earnings".

"As the fund raising exercise is subject to shareholders approval, we have not factored the same in our model and its subsequent impact on price target. However, retaining the same valuation multiple, on account of the equity dilution from QIP issue, our target price would come down by 3% to Rs 1,292/share," says Karvy Stock Broking report.

Firstcall Research on Binani Cement - Target Rs 84

 

Firstcall Research has come out with a research report on Binani Cement. The firm has recommended buy in this particular scrip with a target price of Rs 84, in its report.

The report says, "At the current market price of Rs 69.85, the stock trades at a P/E of 4.27x and 3.76x for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 2.68x and 2.56x for FY10E and FY11E respectively. Price to Book Value of the stock is expected to be at 1.75 and 1.20 respectively for FY10E and FY11E."

"The Net sales of the company are expected to grow at a CAGR of 28% over 2008 to 2011E. BCL has CAPEX plans of Rs 1700 crore to be spent over the next 2-3 years which includes Greenfield expansion in Gujarat, Grinding unit in Mauritius, Expansion in China & mine development in Nimbri Chandawatan, Rajasthan. We recommend buy in this particular scrip with a target price of Rs.84.00. for medium to long term gains," according to Firstcall Research.