Stock views on Hexaware Technologies, JK Cement, BGR Energy

Hem Securities on BGR Energy - Target Rs 625

Hem Securities is bullish on BGR Energy Systems and has recommended buy rating on the stock with a target of Rs 625, in its research report.

"Increasing GoI thrust on power sector via plan allocation for power sector doubling under Budget 2010-2011, BGR Energy Systems' unique position as a singlepackage BOP/EPC solution provider, robust order book and an edge of cost advantage over its peer competitors are the key growth drivers for the company going forward. Enhancement of manufacturing capabilities and expansion of product range and strong revenue visibility will add value to the company. In the wake of such growth, BGR Energy Systems seems to be extremely attractive investment opportunity."

"Presently, the stock is trading at Rs 508 (price on 9/3/2010) which is at 26.19 times to its TTM earnings and 6.49 times to its book value of Rs 78.32. Since the stock offers good opportunity, we initiate a 'BUY' signal on the stock with a target price of Rs 625.00 in short to medium term investment horizon expecting an appreciation of about 23% from the current level of Rs 508," says Hem Securities research report.

 

FinQuest Securities on JK Cement - Target Rs 259

 

FinQuest Securities is bullish on JK Cement and ahs recommended buy rating on the stock with a target of Rs 259, in its research report.

"JK Cements (JKC) is the mid-sized cement manufacturer located in Northern India and the second largest white cement manufacturer in India. As of FY09, the company has grey cement and white cement manufacturing capacity of 4.5 million tonnes and 0.4 million tonnes respectively. In 3QFY10, the company has diversified into Western and Southern market by commissioning of 3.0 million tonne cement plant in Karnataka. Going forward, we believe the company will post handsome gains in profitability based on incremental volume, albeit offset partially by decline in cement prices due to ensuing supply glut."

"At CMP, JKC is trading at 6.0x and 5.4x FY10E and FY11E earnings respectively and 5.3x and 4.0x FY10E and FY11E EV/EBITDA respectively. We initiate coverage on the company with BUY recommendation."

Sushil Finance on Hexaware Tech - Target Rs 110:

 

Sushil Finance has recommended buy rating on Hexaware Technologies with a target of Rs 110, in its research report.

"Hexaware Technologies is a leading IT & BPO services provider and has adopted IP-led growth strategy by creating several IPs in the recent past. Its core expertise (also built via acquisitions in past) across all major ERP systems such as PeopleSoft, Oracle, SAP & Microsoft and ability to create customized solutions, help the Company in winning multiple large deals. Its realignment of business across strategic verticals with continued focus on sales and marketing augurs well for the Company. Going forward, we expect its consolidated revenues to grow by 0.2% & 10% in CY10E & CY11E respectively and its APAT to grow by 0.5% & 17.8% in CY10E & CY11E respectively. h

"At CMP of Rs. 70, the stock is trading at an attractive valuation of 6.3x CY11E EPS of Rs.11.1. Given its strong domain expertise and technology capabilities, healthy balancesheet, and proven track record of managing large applications for Fortune 500/Global 500 clients, we initiate coverage on the stock with a "Buy" rating and a target price of Rs110 (based on 10x its CY11E EPS of Rs 11.1)," says Sushil Finance research report.