KRChoksey Views on Tata Consultancy Services, GSK Consumer, Infosys

Tata Consultancy Services - Target of Rs 989

KRChoksey Research has recommended a buy rating on Tata Consultancy Services with a target price of Rs 989 in its September 12, 2008 research report. "Currently IT companies are trading at 13-15x FY09E earnings, which is much below their trading multiples of 30x in Dec’06. We believe that investors’ short term focus on cross currency movement is unwarranted. We also expect investors to shift focus on absolute growth rates and USD/INR currency movements in medium term. We therefore continue to maintain our view on IT sector," says KRChoksey's research report.

GSK Consumer - Target of Rs 781

KRChoksey Research has recommended a buy rating on GlaxoSmithKline Consumer Healthcare with a 12-month target price of Rs 781 in its September 19, 2008 research report. "At the CMP of Rs 619, the stock is trading at 14.4x TTM EPS of Rs 43.0. Going forward, we believe the company is expected to see strong performance driven by leveraging its flagship brand Horlicks and aggressive plans of new launches. We initiate coverage on the stock with a Buy rating and a 12-month target price of Rs 781, implying an upside potential of 26% which is arrived by discounting CY09E EPS of Rs 52 by 15x," says KRChoksey's research report.

Infosys - Target of Rs 2079

KRChoksey Research has recommended a buy rating on Infosys Technologies with a target price of Rs 2079 in its September 12, 2008 research report. "Currently IT companies are trading at 13-15x FY09E earnings, which is much below their trading multiples of 30x in Dec’06. We believe that investors’ short term focus on cross currency movement is unwarranted. We also expect investors to shift focus on absolute growth rates and USD/INR currency movements in medium term. We therefore continue to maintain our view on IT sector," says KRChoksey's research report.

Take Your PICK: Part II - MID CAP STOCKS

GSK Consumer (CMP: Rs 620): The company has a leadership position in the malted beverages space, strong set of core brands (Horlicks & Boost) and rich parentage (new launches from global portfolio). These are expected to help GSK sustain robust growth. Moreover, surplus cash and investments of Rs 400 crore coupled with attractive valuations make it one of the best value plays in the consumer domain.

PVR (CMP: Rs 174): The company’s superior management bandwidth, integrated business model and strong set of properties (in terms of location) make it the most preferred play in the movie exhibition space. Moreover, its entry into new allied businesses such as food courts and bowling alleys coupled with recent dilution in its movie production business is likely to lead to re-rating of the stock.

Bartronics India (CMP: Rs 179): The company operates in the automatic identification and data capture (AIDC) solutions segment and is set to leverage the strong growth expected in the retail sector. It is the only smart cards manufacturer in India and this segment is expected to surge on strong demand from the telecom, banking and government sectors. In the wake of strong growth prospects of the company, the stock offers great value.

Jain Irrigation (CMP: Rs 464): The company is a proxy play on the increasing government focus on agriculture and micro irrigation and the booming infrastructure in the country. It would also benefit from the acquisitions it made over the last couple of years, which will be in addition to the company’s organic growth initiatives. Thus, the long-term prospects of the company are robust.

Piramal Healthcare (CMP: Rs 310): The company is an early entrant into the CRAMS space. Over the last couple of years, it has consolidated its presence in the segment, which now contributes 50% of its overall revenues. Considering its robust pipeline, the company is expected to post robust growth in the years to come.

This article is fron the research house of Angel Broking