Stock Views on Renaissance Jewellery, Hawkins Cooker

Sunidhi Securities and Finance on Renaissance Jewellery - Target  Rs 115

 

Sunidhi Securities & Finance has recommended buy rating on Renaissance Jewellery with a target of Rs 115, in its research report.

"Renaissance Jewellery 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 sold this business to Gitanjali Gems in 2008 for Rs 25 crore. 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."

"The company 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. The stock is in an uptrend as it is moving along the upsloping support trendline. Considering its big fall from early 2007 and its bottom in beginning of 2009, the stock can be seen forming a rounding formation. Technically, the upside target is Rs 115." says Sunidhi Securities & Finance.

Firstcall Research on Hawkins Cooker - Target Rs 820

 

Firstcall Research has recommended a buy rating on Hawkins Cooker, with price target of Rs 820, in its report

"At the market price of Rs 719.90, the stock is trading at 9.24 x and 8.15 x for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 6.50 x for FY10E and 6.32 x for FY11E. Price to book value of the company is expected to be at 5.60 x for FY10E and 3.32 x for FY11E respectively. EPS of the company is expected to be at Rs 77.92 and Rs 88.35 for the earnings of FY10E and FY11E respectively. The company's top line and bottom line are expected to grow at a CAGR of 17% and 61% over FY08 to FY11E. The Company operates in a single segment, manufacture, trading and sale of Kitchenware. The company continued its efforts on product development with more emphasis on research and development activity. The company has declared a dividend of Rs 20 per Equity Share for the year ended March 31, 2009. We recommend 'BUY' with a target price of Rs 820 for medium to long term," says Firstcall Research report.