Stock views on Mphasis, Mawana Sugars, Polaris

ULJK Research on Polaris - Target Rs 197

 

ULJK Research initiated Coverage on Polaris with a Buy recommendation for a target price of Rs 197

"We recommend a BUY on the stock with a target price of Rs.197 with an upside potential of 35% for an EPS of Rs. 19.79. We expect the EPS to grow at a CAGR of 22% for FY 09-11(E). Our target price of Rs.197 discounts the FY11 EPS of Rs.19.79 for a forward PE of 10(x). Our target PE of 10(x) discounts the forward PE of midcaps by nearly 20% to 30%, which we feel is very rational on the back of the large exposure to the single vertical of BFSI and the high client concentration of 17% for top clients." says ULJK research report.

Firstcall Research on Mawana Sugars - Target Rs 42

 

 

stcall Research has recommended buy rating on Mawana Sugars with a price target of Rs 42 in its report.

"Mawana Sugars is a multi-product company with business interests in Sugar, Power, Chemicals and Edible Oils. Mawana has 3 production units located at Mawana, Titawi and Nanglamal. Mawana is an integrated sugar business with 29500 TCD crush, 47 MW of exportable power and 120 KL/PD Ethanol production facilities. The top line of the Company is expected to grow at a CAGR of 26% over FY09 to FY11E. The lower demand of Chlorine would limit the Caustic Soda production and its availability in the country. The prices of Caustic Soda would be in consonance with the international prices as the threat of imports of Caustic Soda would bring down domestic prices. At the current market price of Rs 33.70, the stock is trading at 7.35x and 4.83x for FY10E and FY11E respectively. Price to Book Value of the stock is expected to be at 0.38x and 0.35x respectively for FY10E and FY11E. We recommend 'BUY' for this stock with a target price of Rs 42 for medium to long term, "says Firstcall Research report.

Anand Rathi Securities on Mphasis - Target Rs 890

 

Anand Rathi Securities has maintained buy rating on Mphasis with a price target of Rs 890 in its report.

"Forex gains in revenue and 'other income' led to Mphasis' higher net profit. The operating margin, however (adjusted for hedging gains in revenue) was lower than expected. Mphasis added 19 clients (incl. 11 from HP), indicating deals in other accounts. Revenue in rupee terms grew 5.2% qoq. Revenue from Application Services, BPO and ITO services was, qoq, +11.9%, -5.1% and -7.9%, respectively. EBIDTA margin increased 30bps qoq on account of higher revenue (hedging gain) and lower G&A costs (declined 242bps qoq). We maintain our target multiple of 17x the average of FY10e and FY11e earnings of Rs52.6, thus arriving at our target price of Rs 890. BUY, "says Anand Rathi Securities report.