Stock views on Cadila Healthcare, Titan Industries, JSW Steel

Prabhudas Lilladher  on JSW Steel - Target Rs 1431

 

Prabhudas Lilladher has recommended accumulate rating on JSW Steel with a target of Rs 1431, in its research report.

"JSW Steel reported profit of Rs 7.2 billion, ahead of our expectation of Rs 5.9 billion, primarily on account of a one-time gain on translation of foreign currency loans (Rs 960 m) and lower-than-expected tax rate and interest cost. Net revenue grew by 12.6% QoQ to Rs 51.7 billion (expectation of Rs 51.9 billion) on the back of 5.6% rise in realisation (Rs 33,994 v/s Rs 32,194 per tonne) and 6.7% volume growth. Higher rise in realisations, relative to increase in the iron ore cost, increased the EBITDA by 18% QoQ to Rs 12.9 billion (EBITDA per tonne of Rs 8,506 v/s Rs 7,668 QoQ), almost in-line with our expectation of Rs 13.4 billion. Pre-exceptional profit (adjusted for gain on translation) grew by 46% QoQ to Rs 6.4 billion. The performance was above our expectation on the back of lower-than-expected interest cost (Rs 1.94 billion against ours at Rs 2.27 billion) and lower-than-expected tax rate (24% against ours at 30%). Tax rate reduced on account of reduction in surcharge.

"At CMP, stock trades at P/E of 12.1x and 8.1x FY11E and FY12E, while on EV/EBITDA, it trades at 8.x and 5.5x FY11E and FY12E, respectively. We maintain our 'Accumulate' rating on the stock on the back of improved earnings quality associated with higher raw material integration and hassle-free superior volume growth, attractive returns on capital and better shaped balance sheet."

India Infoline  on Titan Industries - Target Rs 2270

 

India Infoline is bullish on Titan Industries and has recommended buy rating on the stock with target of Rs 2270, in its research report.

"Titan Industries has rallied smartly from a low of Rs 1,861 in April 2010 to the present levels. Despite the ongoing volatility in the market, the stock has managed to hold on to the support of its short-term trendline. On the daily charts, it has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term. The daily RSI is already in strong buy mode, indicating that the prices are set to rally from the current levels."

"A sustained move past the Rs 2,195 levels will see the stock heading towards the levels of Rs 2,250-2,270 in the medium term. We recommend high risk traders to buy the stock between Rs 2,180-2,195 levels for an initial target of Rs 2,270 with a stop loss of Rs 2,165," says India Infoline research report.

 

 

Angel Securities  on Cadila Healthcare - Target Rs 634

 

Angel Securities is bullish on Cadila Healthcare and has recommended buy rating on the stock with a target of Rs 634, in its research report.

"Cadila Healthcare (Cadila), one of the most diversified Pharma companies in our coverage universe, continued its strong performance and reported good set of numbers for 4QFY2010 driven by the Export Formulation Segment, viz. the US and Europe. On the Domestic Formulation front, the company hired 600 sales force during FY2010 to increase the penetration-led growth in the market and is now targeting 15% growth. For FY2011E, the company has guided for USD 1 billion on the Top-line front, implying a growth of 27-28% with OPM improvement of 100bp from current levels of 19.5%. We recommend a Buy on the stock," says Angel Securities research report.