Stock views on Educomp Solutions, ITC, Biocon

HDFC Securities on Biocon - Target Rs 327

 

HDFC Securities is bullish on Biocon and has recommended buy rating on the stock with a target of Rs 327, in its research report.

"Biocon is the leading player in statins and exports over 80% of its production commands over 20% global market share and derives 30% of its revenues from this business. The company caters to regulated markets including US and Europe. The global patents of Lovastatin, Simvastatin and Pravastatin have already expired and they have become generic. The patent for Atorvastain is expiring in 2010 in UK and 2011 in Germany. This is likely to offer a huge opportunity due to its USD 12 billion market size. The company manufactures all four statins, Lovastatin, Simvastatin, Pravastatin and Atorvastatin by fermentation process, which requires high technological skills."

"The CMP of Rs 268 discounts the FY10E EPS of Rs 15.3 by 17.5x and FY11E EPS of Rs 18.2 by 14.7x. The company is likely to benefit from the growth in statins, recombinant insulin, contract research and formulations businesses. We initiate the coverage with a BUY rating with a target price of Rs 327 (18xFY11 EPS), an upside of 22.1% over the next 12 months," says HDFC Securities research.

Indiabulls Securities on ITC - Target Rs 294

 

Indiabulls Securities Research has maintained its buy rating on ITC, with price target of Rs 294, in its report.

"We expect an improvement in ITC's revenue growth and profitability on the back of recovery in hotel business, abridgement of losses in FMCG-others, higher realisations from cigarettes as well as paper and paperboards segment. Moreover, our DCF-based valuation (assuming WACC of 11.3%, Rf of 7.66%, and terminal growth rate of 5%) gives a target price of Rs 294, which provides an upside of 15% over the current market price (CMP) of Rs 254.50. Thus, we maintain our 'Buy' rating on the Stock," says Indiabulls Securities Research report.

Angel Securities on Educomp Solutions - Target Rs 926

Angel Securities has recommended buy rating on Educomp Solutions with a target of Rs 926, in its research report.

"In addition to the aggressive expansion plans in the   Smart Class Segment, the company is also investing considerable amounts   towards newer initiatives in terms of setting up its own K-12 high-schools and has   embarked on expansion of its Online, Supplementary business. We expect   Educomp to record strong CAGR of 48.5% and 45.4% in Top-line and   Bottom-line respectively, over FY2009-12E. At the CMP, the stock is trading at a   P/E of 14.2x FY2012E EPS. We upgrade the stock from Neutral to a Buy, with a  target Price of Rs 926."