Stock views on PTC India, Tata Steel, IVRCL Infrastructure and Projects

HDFC Securities on IVRCL Infra - Target Rs 372

 

HDFC Securities is bullish on IVRCL Infrastructure and Projects and has recommended buy rating on the stock with a target of Rs 372, in its research report.

"IVRCL Infrastructure and Projects, engaged in execution of EPC and turnkey projects across various infrastructure segments, reported a strong order inflow of over Rs100 bn YTD. The current order book stands at Rs 220 billion (4.3x last 12 months revenue) and offers decent revenue visibility going ahead. However, IVRCL's performance was subdued in 3QFY10 due to the delay in payment from the Government of AP leading to slower execution. But we feel this will no longer be the case as the company has reduced its exposure to AP and the uptick in cement consumption in AP shows a pick up in construction activities. We are retaining our BUY call on the stock with a target price of Rs 372," says HDFC Securities research report.

KRChoksey on Tata Steel - Target Rs 718

 

KRChoksey is bullish on Tata Steel and has recommended buy rating on the stock with a target of Rs 718, in its research report.

"Steel prices have gone up globally during January and therefore we expect EBITDA per tonne in European operations to improve further during Q4FY10 with raw material cost remaining on the lower side. Tata Steel has guided for fall in production in Q4 vs Q3 on account of mothballing of TCP and planned maintenance shutdown on BF No. 7 Ijmuiden, however deliveries are expected to improve as company is focusing on inventory reduction. Corus will be partially mothballing TCP plant by the end of February 2010, which will help minimize cost even further as TCP contributed significantly to losses during first nine months. We believe that restructuring initiatives undertaken by the company in Corus combined with expected improvement in realizations led by cost push will help Corus post healthy EBITDA during FY11E."

"As iron ore and coking coal contracts for 2010 are expected at almost 30-40% higher levels than last year, global steel prices are expected to move up led by cost push. Indian operations with complete backward integration in iron ore and 55-60% in coking coal will see further margin expansion during FY11E as cost increase will remain on the lower side. We value the company at FY11E EV/EBITDA multiple of 7x, deriving our one year target price of Rs 718 (Rs 632 earlier) and recommend BUY rating on the stock," says KRChoksey research report.

Networth Stock Broking on PTC India - Target Rs 146

 

Networth Stock Broking has come out with a research report on PTC India. The firm has recommended buy on the stock with a target price of Rs 146.

The report says, "PTC India is in the process of transforming from just power trader to an integrated player in the power space. The company has expanded its horizon by making its presence into the entire value chain of the power like financing, fuel-intermediation, power tolling, power generation and exchange. We believe this would help PTC to de-risk its business model and improve visibility & certainty to earnings."

"PTC has more than 50% market share in power trading in India. As per LTT (Long-term Trading) PPAs and PSAs signed by the company, we expect volumes to grow at a CAGR of 30% over next 3 years (FY09-FY12E). We believe that PTC's long term goal to change revenue mix of LTT:STT to 70:30 from 47:53 will bring more visibility and sustainability to the revenues," according to Networth report.

 

The report also says, "PTC has pioneered in power trading industry with its first mover advantage and continuous innovative initiatives. We believe that the diversification in entire value chain of power would de-risk its business model and substantially support its core business. We recommend buy on the stock with a TP of Rs 146."