Stock views on Punjab National Bank, India Cements, Lupin

Motilal Oswal  on Lupin - Target Rs 1988

 

Motilal Oswal is bullish on Lupin and has recommended buy rating on the stock with a target of Rs 1988, in its research report.

"Lupin's underlying fundamentals are likely to improve gradually, led by an expanding US generics pipeline, niche/Para-IV opportunities in the US, strong performance from Suprax and a ramp-up in Antara revenues (branded products in US) and traction in formulation revenues from its European initiative. We expect Lupin's core operations (excluding one-off upsides) to post 16% revenue CAGR over FY10-12 led by 17% CAGR for the US business and 18% CAGR for the domestic formulations business."

"We believe Lupin is gaining critical mass in the US, and its European revenues should gradually ramp up from FY11. It has 86 ANDAs pending approval in the US, including filings for low-competition products in the oral contraceptives segment. The stock trades at 19.3x FY11E and 16.5x FY12E EPS with a sustained 30%+ RoE. Maintain Buy with a target price of Rs 1988 (18x FY12E EPS). Our estimates do not include one-time upsides for the company's FTF pipeline in the US," says Motilal Oswal research report.

Angel Sec on India Cements - Target Rs 138

 

Angel Securities is bullish on India Cements and has recommended buy rating on the stock with a target of Rs 138, in its research report.

"India Cements (INC) posted an 8.6% yoy growth in the Top-line during 4QFY2010 to Rs974cr. The revenue from the cement business stood at Rs920cr. The growth in the Top-line was primarily on account of a healthy 26.5% yoy increase in the sales volume, even as the realisation declined by 19.4% yoy to Rs2,488/tonne. On the operating front, the margins of the company declined by 941bp yoy to 15.2%, on account of a surge in the raw material and freight costs. The Net profit declined by 59.2% yoy to Rs38cr, primarily on account of a poor operating performance. We recommend a Buy on the stock," says Angel Securities research report.

P Lilladher on PNB - Target Rs 1194

 

Prabhudas Lilladher has recommended accumulate rating on Punjab National Bank with a target of Rs 1194, in its research report.

"At the CMP, Punjab National Bank is trading at 1.6x its FY11E ABV and 1.3x its FY12E ABV, which is at a premium to its other peers. We believe the valuations are likely to remain at a premium compared to peers as it is likely to deliver RoEs at~24% and RoAs at ~1.5% over FY10-12E which is likely to be the best in the sector. Its restructured book, which is 6.5% of the total advances, is on the higher side. This poses some risk to unforeseen slippages which remains the only foreseeable risk in this exceptionally well managed bank. We maintain our 'Accumulate' rating, with a price target of Rs 1194," says Prabhudas Lilladher research report.