Stock views on Oriental Bank of Commerce, Inox Leisure, Bhushan Steel

Hem Securities on Bhushan Steel - Target Rs 1850

Hem Securities has recommended buy rating on Bhushan Steel with a target of Rs 1850.

"Brand acquisition of Australian firm named Bowen energy, deepening of relationship with Japanese firm Sumitomo Metals, backward integration and plan to set up Bengal steel project would be the key growth drivers for Bhushan Steel Ltd in the forthcoming future. Further, the capacity expansion of Bhushan's Orissa steel plant to 5 million tones by October 2012 would add value. In wake of such growth, Bhushan Steel Ltd seems to be extremely attractive investment opportunity in Metal space."

"Presently, the stock is trading at Rs 1535 which is at 9.25 times to its TTM earnings and 3.2 times to its book value of Rs 479.77. Since the stock offers good opportunity, we initiate a 'BUY' signal on the stock with a target price of INR 1850 in long term investment horizon expecting an appreciation of about 20% from the current level of INR 1535."

Karvy Stock Broking on Inox Leisure - Target Rs 79

 

Karvy Stock Broking has recommended market performer rating on Inox Leisure with a target price of Rs 79, in its research report.

"Inox acquired 43.3% controlling stake (promoter Shroff family's stake) in its competitor Fame India for ~Rs 663 mn on Feb 3, 2010. Two days later, Inox acquired another 7.2% in Fame, from the open market and increased its stake to 50.5%. With this acquisition, Inox will leave behind PVR and become the second largest multiplex chain in terms of operational screens. Post acquisition, Inox will operate 204 screens across 55 properties, only behind BIG cinemas that has 246 screens. Moreover, Fame has a strong distribution business which generated an annual turnover of Rs 158 mn (over 10x Inox's distribution) in FY09.We believe that from a long term perspective, this is a good consolidation move for Inox and the multiplex industry which is struggling with higher bargaining power of producers & distributors and competition from TV including DTH and events like IPL. However, we expect that it will take minimum 1-2 years for Inox to synergize its operations with Fame's properties and generate a positive return for its shareholders from this deal. We expect the deal to be EPS neutral to negative for Inox, in the next 12-15 months." says Karvy Stock Broking research report.

Karvy Stock Broking on Oriental Bank of Commerce - Target Rs 464

Karvy Stock Broking has recommended buy rating on Oriental Bank of Commerce with a target price of Rs 464, in its research report.

"Overall the quarterly result was better than our estimates on core income and operating profit levels but higher provisions dented the bank's bottomline. We increase our earning estimates for FY10 and FY11 by 20% and 28% respectively to factor in higher volume growth and sharp improvement in NII and margin. We raise our target price on the stock by 19.5% to Rs464 at 1.48x adjusted book value FY11 and reiterate our BUY rating on the stock. At current price, the stock quotes 0.73x ABV FY11 and 4.2% dividend yield offering decent upside." says Karvy Stock Broking research report.