Stock views on Tata Steel, HDIL, Shree Renuka Sugars

Karvy Stock Broking  on Shree Renuka - Target Rs 270

 

Karvy Stock Broking is bullish on Shree Renuka Sugars and has recommended buy rating on the satock with a target of Rs 270, in its research report.

"We recently met the management of Shree Renuka Sugar (SRSL) and come back with encouraging feedback. The company's strategy to expand its raw sugar refining capacity is paying off and entry into lucrative Brazil market with VDI acquisition is expected to benefit significantly going ahead. The management has confirmed our belief of possible extension of sugar cycle in FY11. We reiterate BUY."

"At current market price of Rs 180, Shree Renuka Sugars is trading at 9.8xFY10E and 7.7xFY11E earnings of Rs 18.4 and Rs 23.4 respectively. On EV/EBITDA, stock is trading on 6.3xFY10E and 4.8xFY11 respectively. The stock was treaded between the P/E bands of 20x to 30x and EV/ EBIDTA of 10x to 20x in last two years. We expect the stock to trade at premium due to flexibility in raw material sourcing and diversification in ethanol and power. We have valued SRSL at Rs 258 on P/ E multiple of 11xFY11 earnings translating into EV/ EBIDTA of 7xFY11. Considering the value per share of Rs 11.4 from VDI, our price target is Rs 270," says Karvy Stock Broking research report.

IndiaInfoline on HDIL - Target Rs 333

 

IndiaInfoline Research is bullish on Housing Development and Infrastructure, HDIL and has recommended buy rating on the stock with a target of Rs 333, in its research report.

"Housing Development and Infrastructure, HDIL has rallied smartly from a low of Rs 296 in first week of February 2010 to the present levels. Despite the ongoing volatility in the market, the stock has managed to hold on to the support of its 200-DMA. On the daily charts, it has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term. The daily RSI is already in strong buy mode, indicating that the prices are set to rally from the current levels. A sustained move past the Rs 318 levels will see the stock heading towards the levels of Rs 330-335 in the medium term. We recommend high risk traders to buy the stock between Rs 312-318 for a target of Rs 333 with a stop loss of Rs 307," says IndiaInfoline research report.

Angel Securities on Tata Steel- Target Rs 697

 

Angel Securities is bullish on Tata Steel and has recommended buy rating on the stock with a target of Rs 697, in its research report.

"At the CMP of Rs 585, Tata Steel is trading at 7.1x FY2011E and 6.3x FY2012E EV/EBITDA. We expect a sequential improvement in 4QFY2010E in its European operations, driven by higher steel deliveries and higher prices, along with the benefits of lower coking coal costs. We maintain a Buy on the stock, with a target Price of Rs 697 (based on SOTP valuation)," says Angel Securities research report.