Stock views on Renaissance Jewellery, KPIT Cummins, GSK Pharma

Motilal Oswal on GSK Pharma - Target Rs 1800

Motilal Oswal has maintained its buy rating on GlaxoSmithKline Pharmaceuticals, with price target of Rs 1800, in its report

"We believe GSK Pharma is one of the best plays on the IPR regime in India with plans to launch nine patented/lowcompetition products over CY08-10, of which five have already been launched. These launches are expected to bring long-term benefits. We believe GSK Pharma's top-line growth is gradually improving with the company expected to record 13-14% growth over the next two years. We believe this growth trajectory will improve in the long term and after CY13, it is likely to outperform the industry's average growth of 12-13%. Given the high profitability of operations, we expect this growth to lead to sustainable double-digit earnings growth and RoE of ~30%. GSK Pharma deserves premium valuations due to strong parentage, brand-building ability and likely positioning in the post-patent era. We expect GSK Pharma to post CY10 EPS of Rs 68.4 (up 14.7%) and CY11 EPS of Rs 78.2 (up 14.4%). The stock is valued at 23.1x CY10E and 20.2x CY11E earnings. Maintain Buy with a target price of Rs 1,800 (23x CY11E EPS)," says Motilal Oswal report.

 

 

Prabhudas Lilladher on KPIT Cummins - Target Rs 150

 

Prabhudas Lilladher has recommended an accumulate rating on KPIT Cummins, with price target of Rs 150, in its report.

"We expect KPIT Cummins to report organic growth of 1-2% QoQ and inorganic growth of 7-8% QoQ in USD terms for Q4FY10. We expect the stability in Cummins business as a precursor to the growth from it. We anticipate Sparta acquisition along with improvement in automotive & semiconductor sector and stability in Cummins business to help KPIT deliver stronger growth than its peers. We reiterate our "Accumulate" rating, with a target price of Rs 150, a target multiple of 12x FY11 earning," says Prabhudas Lilladher report.

Sunidhi Securities & Finance on Renaissance Jewellery - Target Rs 100

 

Sunidhi Securities & Finance has maintained buy rating on Renaissance Jewellery with a price target of Rs 100 in its report.

 

"Renaissance Jewellery (RJL) has eight retail outlets (five in Mumbai, one in Pune, one in Lucknow and one in Gurgaon) and 16 shops. The retail products are sold under the brand name, Lucera. RJL is in the process of increasing outlets. RJL has two subsidiaries, Renaissance Jewelery New York Inc., which caters to independent mid-range retailers and Verigold Jewellery (UK) serves as a marketing and trading hub in UK and rest of Europe. Its supplies to major retailers like Wal-Mart, NBC, JC Penny & Zales. RJL is likely to post an EPS of Rs 20 in FY10 and Rs 24 in FY11. At the CMP of Rs 71, the share is trading at a P/E of 3.5x on FY10E and 3.2x on FY11E. We recommend BUY with a target of Rs 100 in the medium term," says IndiaInfoline research report.