Stock Views on DISH TV, NTPC, BAJAJ AUTO

UBS on BAJAJ AUTO

UBS maintains `Buy' rating on Bajaj Auto with a price target of 1,775. Bajaj Auto announced plans to raise prices by up to 1,000 per bike across models effective January 1, 2011 to offset commodity price increases. The company had previously taken a price increase of about 2% on October 1. UBS expects margin outlook to remain strong, helped by the recent price increases by the company despite increase in raw material costs. The current pricing of Bajaj versus Hero Honda makes Bajaj's products relatively competitive and gives it leeway to increase prices going forward. UBS expects new launches and distribution expansion to drive FY12 volume growth. Bajaj has announced plans to add 130 dealerships in the next six months leading to total dealerships of more than 600. UBS expects new model launches from Bajaj to help drive higher-than-industry growth in FY12.

NOMURA on NTPC


Nomura maintains `Buy' rating on NTPC with a price target of 228. NTPC scores well as a defensive growth option with high earnings visibility, low funding risk, high payment security and adequate fuel security. The stock has lagged YTD pricing in risk of competition, execution delays and fuel availability. Investor expectations seem low. FY11E-13E EPS CAGR is seen at 14%, and valuations are below historical averages. In a press release recently, NTPC stated that the Ministry of Power has allowed 15% of power generation from the incremental 500-MW capacity each at Korba and Farakka to be sold outside long-term PPAs (power purchasing agreements). NTPC offers the highest earnings visibility amongst IPPs (independent power producers), high payment security, the lowest funding risk, adequate fuel security, competitive cost of generation and sustainable 20%-plus RoE on core operating assets. Like NTPC, PWGR offers defensive earnings growth; it is a 'hedged play' on India's 150-GW-plus generation capacity pipeline and 30% upside in its CMP.

JP MORGAN  on DISH TV

Industry growth is exceeding expectations, and management expects this to continue. While set top box prices have been cut, freemonth offers have been reduced and customers are migrating to higher-ARPU (average revenue per user) packs. Subscriber additions for new entrants have picked up, although firms are maintaining pricing discipline. Management indicated strong growth visibility - industry subscriber additions saw a strong pick-up in October and November. Additions are likely to accelerate with the Cricket World Cup commencing in February 2011. DITV had 55% customers at the base 'silver pack' in April 10, but this is down to 20% now. High-end Gold and Platinum now account for 50% of total customers. Blended net ARPU is up from 139 in August to 144 currently.