Stock views on Monnet Ispat, Federal Bank

Angel Securities on Federal Bank - Target Rs 342

Angel Securities is bullish on Federal Bank and has recommended buy rating on the stock with a target of Rs 342, in its research report.

"Federal Bank is an old, private sector bank with a large network of 669 branches, concentrated in semi-urban areas in the southern states. The Bank's strong Capital Adequacy, Operating Efficiency and technologically up-to-date network represent an attractive standalone franchise. The Bank's deposit base includes a niche, low-cost NRI deposit base that contributes a meaningful 16.5% of total deposits and gives it a distinguishing cost advantage over several of its peers. At the CMP, the stock is trading at attractive valuations of 0.8x FY2012E Adjusted Book Value (ABV) - similar to South Indian Bank, its closest peer, compared to a 5-year average premium of 15%. While lower leverage is leading to low RoEs at present, at the core RoA level, the bank's earnings quality is one of the best among peers. We recommend a Buy, assigning a multiple of 1.0x FY2012E ABV to arrive at a 12-month target price of Rs 342," Angel Securities research report.

 

Firstcall Research on Monnet Ispat - Target Rs 438

 

Firstcall Research is bullish on Monnet Ispat and has recommended buy rating on the stock with a target of Rs 438, in its research report.

"At the current market price of Rs 381.00, the stock is trading at 6.8 x FY10E and 6.0 x FY11E respectively. Price to Book Value of the stock is expected to be at 1.17 x and 0.98 x respectively for FY10E and FY11E. Earning per share (EPS) of the company for the earnings for FY10E and FY11E is seen at Rs.56.06 and Rs.63.52 respectively. Monnet Group has embarked upon a major investment program in the short term."

"More than USD 1.5 billion worth of investments have been lined up in various business segments. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 438 for Medium to Long term investment.