Stock views on Aurobindo Pharma, South Indian Bank, Jyoti Structures

Firstcall Research on Jyoti Structures - Target Rs 200

 

Firstcall Research has recommended a buy rating on Jyoti Structures, with price target of Rs 200, in its report

"At the current market price of Jyoti Structures Rs 160, the stock trades at a P/E of 14.24 x and 11.91 x for FY10E and FY11E respectively. The EPS of the stock is expected to be at Rs 11.24 and Rs 13.43 for the earnings of FY10E and FY11E respectively. The top line and bottom line of the company are expected to growth a CAGR of 20.71% and 15% over FY08 to FY11E. On the basis of EV/EBDITA, the stock trades at 7.11x and 6.57x for FY10E and FY11E respectively. Price to Book Value of the stock is expected to be at 2.58x for FY10E and 2.12x for FY11E. Book Value the company is expected to be at Rs 62.08 and Rs 75.52 for FY10E and FY11E respectively. The company has a healthy order book of Rs 40300 million (2.33x its FY2009
revenues), which provides good revenue visibility to the company and cushions it from short-term order fluctuations. We recommend 'BUY' in this particular scrip with a target price of Rs 200 for Medium to Long term investment," says Firstcall Research report.

Emkay Global Financial Services  on South Indian Bank - Target Rs 180

 

Emkay Global Financial Services is bullish on South Indian Bank with a target of Rs 180 in its research report.

"We believe that South Indian Bank's valuations at 1.0x FY11E ABV are not reflecting the transformation in quality of its earnings. Over FY06-09, SIB has consolidated its position by channelising its resources in core banking business. Focusing on core banking has helped SIB weed out volatitlity from its earnings (1.0% core RoAs) and made them more consistent, though its valuations have not taken note of this transformation."

"With consolidation phase being over, SIB has set ambitious growth plans for itself. We expect SIB to add 50 branches per annum over FY10-13E with clear focus on the northern region. With branch expansion in non-south regions, we expect SIB to almost double its loans over FY09-12E to Rs 240 billion, a CAGR of 25.4%. We expect the earnings to grow at a CAGR of 30% over FY09-12E, driven by NIMs of 3.0% and low credit costs. We believe that SIB's robust and quality RoEs of 20% over FY09-12E warrant a re-rating of its valuations. We initiate coverage with a BUY rating and a target price of Rs 180."

SKP Research on Aurobindo Pharma - Target Rs 1800

 

SKP Research is bullish on Aurobindo Pharma and has recommended buy rating on the stock with a target of Rs 1800, in its research report.

"Aurobindo Pharma, promoted by the Reddy's, is engaged in development, manufacturing & marketing of active pharma ingredients (API), intermediates and generic formulations. It is one of the world's top 5 manufacturers of semi synthetic pencillins. The global generics market is expected to grow to $150 Bn as drugs worth $105 Bn are going off-patent in the near future.  The Company has so far launched 60 products in the USA market. Company filed 7 ANDA filings in USA in Q3FY10 taking cumulative filings to 165, thus as on 31.12.2009, 110 ANDAs have received approval from USFDA including 28 tentative approvals."

"High leverage and possible inability to refinance FCCBs were two of the key overhangs on the stock but now the FCCB conversion appears possible and the debt/equity would substantially ease going forward. For the 9 months ended December 2009 the company has reported an EPS of Rs. 79.81. The company's PAT is expected to grow at a CAGR of 50% over FY09-12 on account of its strategic tie-up with Pfizer and other MNC companies to distribute its products across US, Europe, Asia, Latin America and West Asia which will significantly improve its reach. We recommend a buy on the stock for a target price of Rs 1800 in 18 months discounting FY12E earnings at 15x."