Stock views on Bharati Shipyard, Ashok Leyland, Alphageo India

Sharekhan on Alphageo India - Target Rs 297

Sharekhan has recommended a buy rating on Alphageo India, with price target of Rs 297, in its report.

"The order pipeline from fresh tenders is also healthy and Alphageo India hopes to announce more new orders from private operators in the coming months. The efforts to reduce the company’s dependence on public sector oil companies (like ONGC and Oil India) are yielding results now both in terms of better revenue growth outlook and improved utilisation of resources (seismic crews). Given its strong performance in Q2FY2010, healthy order book position and improving client profile, we have significantly upgraded the estimates for FY2010 and FY2011. Consequently, we have upgraded our recommendation to Buy with the price target of Rs 297 (12x FY2011 earnings)," says Sharekhan report.

Sharmila Joshi on Ashok Leyland - Target of Rs 56

Buy Ashok Leyland with a target of Rs 56, says Sharmila Joshi, Investment Advisor.
Joshi told, "Ashok Leyland is bought with an intraday target of Rs 56. Couple of reasons why I like this stock and I do think from current levels these could be an outperformer in the space. I think similar to the kind of catch-up that you saw between Bajaj Auto and Hero Honda; you could see that repeated in this space largely because of the kind of recovery one is seeing in the commercial vehicle space. So this is a high performance kind of potential, the management has given a guidance of about 60,000 to 62,000 units for FY10."

She further added, "The kind of performance this company has shown in the second quarter where they have done about 23.6% kind of growth that’s likely to be maintained in the next two quarters as well and that’s good news. Their AVIA is very close to breakeven and their Uttarakhand plant is getting sanctioned in January ’10 and this will mean an excise duty kind of saving of almost about Rs 6,000 per unit. So, good stock especially if you have maybe FY11 kind of an EPS in mind and as I said I bought it with an intraday target of Rs 56."

KRChoksey on Bharati Shipyard - Target Rs 206

KRChoksey research is bullish on Bharati Shipyard and has recommended buy rating on the stock with a target of Rs 206, in its research report.

"Considering Bharati acquires 20% stake in Great Offshore from the open offer at Rs 590 per share, the average price of its acquisition of 43.1% stake (post open offer) comes out to be Rs 475 per share. At this price Great Offshore is valued at ~12x its FY10E earnings. Though this acquisition may look expensive when we compare it with the valuation of Aban Offshore (P/E of 10x), however, Aban’s discounted valuation is justified by its debt burden. So we believe, that Bharati Shipyard would be acquiring Great Offshore at a fair valuation. This acquisition presents significant synergies to Bharati, whose current order book would last for another 2-3 years. In the next two years, Great Offshore’s 70% of assets will come for replacement or repairs. These orders can be worth Rs 2500-3000 crore. Thus, great offshore’s orders will come at the time when Bharati’s orders are about to get exhausted. We maintain a BUY on Bharati Shipyard with a target price if Rs 206,"says KRChoksey research report.

Stock views on Ashok Leyland, Punjab National Bank, Deepak Fertilizers

Angel Broking on Ashok Leyland - Target Rs 27

Angel Broking has maintained its accumulate rating on Ashok Leyland with a target of Rs 27.

"For 4QFY2009, Ashok Leyland (ALL) reported 52.5% yoy decline in Net Sales to Rs 1,218 crore, which was in line with our expectation of Rs 1,217 crore. Net Profit declined 70.5% yoy to Rs 53.3 crore. We estimate ALL to clock EPS of Rs1.7 in FY2010 and Rs 2.4 in FY2011. We reiterate an 'Accumulate' on the stock to play out the turn in the economic and commercial vehicle (CV) cycle, with a target price of Rs 27. Majority of the factors that drive freight demand and consequently M&HCV demand are expected to turn positive in the medium term. We expect the CV manufacturers to benefit from the expected economic recovery in 2HFY2010," says Angel Broking's research report.

IIFL on Punjab National Bank - Target Rs 754

IIFL has maintained its add rating on Punjab National Bank with a target price of Rs 754 research report.

"PNB’s 4QFY09 net profit was up 59% YoY to Rs 8,656 million, while full-year FY09 net profit was up 51% to Rs 31 billion. Rise in operating expenses and provision charges was more than offset by strong growth in interest and non-interest income. NPLs fell sharply even as the bank restructured 2.6% of its loans, taking problem loans to 4.4% as at end-FY09 from 2.7% as at end-FY08. The bank made aggressive provision for loan-loss charges, which increased 3x for full-year FY09, raising the NPL coverage to 91%, the highest in our coverage universe. We are upgrading our FY10 profit estimates by 8%, and are now forecasting 10% growth in profits. We maintain 'ADD', target price of Rs 754," says IIFL's research report.

PINC Research on Deepak Fertilizers - Target Rs 98

PINC Research has recommended a buy rating on Deepak Fertilizers (DFPCL), with a price target of Rs 98, in its report.

At the CMP, DFPCL is trading at a P/E of 6.2x and EV/EBITDA of 3.5x FY10E. Favourable fertiliser policy & expected increase in availability of gas post RIL KG basin development, augurs well for DFPCL. We maintain our ‘BUY’ recommendation with a target price of Rs 98, which implies a P/E of 7x FY10 earnings that is less than 5 years historical median P/E of 7.4x, says PINC's research report.

KRChoksey Views on Bharat Electronics, NALCO, Hindustan Zinc, Ashok Leyland

Bharat Electronics - Target of Rs 770


KRChoksey Research has recommended a buy Bharat Electronics with a target price of Rs 770 in its November 26, 2008 research report. "The revenue of Bharat Electronics increased by 10% (YoY) to Rs 787.72 crore (including other operative income of Rs 7.02 crore) for quarter ended September 2008. On back of rich cash reserves (Rs 307 per share), capacity expansion plans and diversified product portfolio, we give a BUY rating on the stock with target price of Rs 770," says KRChoksey's research report.


NALCO - Target of Rs 225


KRChoksey Research has recommended a buy rating on National Aluminium Company (NALCO) with a target price of Rs 225 in its November 26, 2008 research report. "Going forward, we believe the company is expected to perform better as commodities prices recover. The company is debt free company. It one of the Navratna company and has strong backward integration. Due to strong fundamentals of the company we give a buy with a target price of Rs 225," says KRChoksey's research report.


Hindustan Zinc - Target of Rs 504


KRChoksey Research has recommended a buy rating on Hindustan Zinc with a target price of Rs 504 in its November 26, 2008 research report. "Going forward, we believe the company is expected to perform better as commodities prices recover. HZL is the lowest cost producer of zinc in the world. It is sitting on huge cash and is a debt free company. It is slated to become the largest producer of zinc. Due to strong fundamentals of the company we give a buy with a target price of Rs 504," says KRChoksey's research report.


Mansukh Securities on Ashok Leyland - Target of Rs 25


Mansukh Securities and Finance has maintained its buy rating on Ashok Leyland with a target of Rs 25 in its research report. "Commercial vehicles sales have shown a downward trend in recent past. Moreover, in days to come, Ashok Leyland seems to have a tough stance to match its volumes in the segment."


"The company has recently increased its capacity and has similar plans for future, keeping this in view, the company is expected to carry excess capacity till the time the volumes are not increased. Also the demand for CV is expected to be dependent on factors such as growth in GDP and IIP, trends in interest rates, and availability of bank credit. Considering, the above factors we maintain our BUY rating on the stock by lowering our price target to Rs 25. Higher dividend yield should provide downside protection from current levels," says Mansukh Securities and Finance's research report.