Stock views on Unity Infraprojects, IRB Infrastructure, Torrent Pharma

Sharekhan on Unity Infraprojects - Target Rs 430

Sharekhan has maintained its buy rating on Unity Infraprojects, with price target of Rs 430, in its report.

"We have not factored in any dilution from the likely QIP in our estimates due to lack of clarity on the QIP. In view of the company’s ability to bag big-ticket orders and the order inflow of Rs 400 crore seen by the company in the financial year till date (28% of our FY2010 order inflow), we remain positive on Unity Infraprojects. We maintain our Buy recommendation on the stock with a price target of Rs 430. At the current market price, the stock is trading at attractive valuations of 6.4x FY2010 earnings estimate and 6.0x FY2011 earnings estimate," says Sharekhan's report.


India Capital Markets on IRB Infra - Target Rs 260

India Capital Markets has recommended a buy rating on IRB Infrastructure Developers with a target of Rs 260 in its research report.

"We have valued the company on an SOTP. The BOT road project at Rs 154.4 (FY11E NPV basis) and Core Construction Business at Rs 74.0 (12x on FY11 earnings), NAV of the Real Estate valued at Rs 10.3, Wind Mills at Rs 3.2 and Cash in holding Co at 17.8 per share. Thus aggregation to Rs 259.7/ per share. Hence, we recommend clients to “BUY” the stock for a long term basis on the back of key surprises & development expected on the order book front. We initiate the coverage with the target price of Rs 260," says India Capital Markets' report.

Karvy Stock Broking on Torrent Pharma - Target Rs 330

Karvy Stock Broking has maintained its buy rating on Torrent Pharmaceuticals with a target price of Rs 330 in its research report.

"We maintain our FY2010 and FY2011 revenue and earnings estimates. The stock is currently quoting at 9x FY2010E and 7.7x FY2011E. In lieu of the current re-rating in the stock we upgrade our multiple from 8.1 x to 10 x We revise our price target upwards by 22% to Rs 330 based on 10x FY2011E. We maintain our 'BUY' rating on the stock," says Karvy's research report.

Stock Ves on Voltamp Transformers, Infosys Technologies , Wipro

Angel on Wipro - Target Rs 487

Angel Broking has upgraded its rating on Wipro to accumulate with a target price of Rs 487 in its research report.

"For 1QFY2010, Wipro recorded a 1.7% qoq decline in top-line. Combined IT Service Revenues clocked a 2.2% qoq decline. On the other hand, in US Dollar terms, IT Service Revenues dipped 1.3% qoq (USD 1,032.6 million v/s USD 1,046 million in 4QFY2009). Valuations are not too demanding and given an expected recovery in the global economic environment in 2HFY2010 and particularly FY2011, we believe that the Indian IT Sector will benefit significantly from such an economic up-turn. Wipro, being a top-tier Indian IT company is expected to be a key beneficiary. Thus, we upgrade the stock to 'Accumulate' with a target price of Rs 487, assigning a P/E of 16x FY2011E EPS," says Angel's research report.

Hem Securities on Infosys - Target Rs 2350

Hem Securities has recommended a buy rating on Infosys Technologies with a target price of Rs 2350 in its research report.

"Infosys Technologies Ltd has posted great figures for Q1FY10. The revenues of the company have gone up from Rs.48540 million in Q1FY09 to Rs.54720 million in Q1FY10 showing an increase of 12.73%. Presently the company is running at a P/E multiple of 18.33x to its FY09 EPS of Rs.104.69. Based on the robust financial performance reported by the company, we recommend 'BUY' on the stock with a medium term price target of Rs 2350.00," says Hem Securities' research report.

India Capital Markets on Voltamp Transformers - Targets Rs 1015

India Capital Markets has recommended a buy rating on Voltamp Transformers with a target price of Rs 1015 in its research report.

"Voltamp Transformers Limited is among the top 3 players in building application transformers in the organised market and commands 20% market share in the industrial application transformers, with large installation base of more than 37000 transformers. We expect volumes to grow at a CAGR of 14.5% over FY09-11 and expect revenues to grow at a CAGR of 8.5% over the same period. Despite likely moderation in its FY10 earnings, any revival in order inflow in the current financial year on account of amplified focus on infrastructure development from the newly formed government will provide earnings upside in FY11. At the current market price, the stock trades at 8.05x its FY 10E earnings of Rs 94.60 and 6.75x its FY 11E earnings of Rs 112.84. We recommend 'BUY' with a target price of Rs 1015 based on the P/E Multiple method (9x its FY11E earnings), i.e. a potential upside of 33% from its current levels. We believe the company offers decent opportunity to play on the India T&D sector story," India Capital Markets' research report.

Stock Views on CESC, Emco, ICICI Bank

Angel on ICICI Bank - Target Rs 888

Angel Broking has maintained its buy rating on ICICI Bank with a target price of Rs 888 in its research report.

"The Bank’s Balance Sheet contraction continued, with advances declining by 9% and deposits by 4%, sequentially. Moreover, the Bank’s NIMs declined sequentially by 20bp, which the management explained was partly on account of low-yielding priority sector loans contracted towards the end of 4QFY2009, and partly on account of investments in low-yielding assets during 1QFY2010. We maintain a 'Buy' on the stock, with a target price of Rs 888, implying an upside of 17%," says Angel's research report


India Capital Markets on Emco - Target Rs 108

India Capital Markets has recommended a buy rating on Emco with a target price of Rs 108 in its research report. "Emco Limited registered a growth of 5.1% in revenues during Q1FY10 to Rs 1926 million as against Rs 1833 million in the same quarter last year. Emco Limited’s Q1FY 10 results were below our expectations in terms of revenue and profitability. We introduce our FY 11 numbers. The current order book position of the company provides decent visibility for the entire current financial year, also the government emphasis on the power sector as a whole will help provide decent revenue and earnings opportunity for the company in the near future and therefore we upgrade our rating and recommend 'BUY' rating to the stock with a target price of Rs 108 (9x its FY 11E earnings) i.e. a potential upside of 20% from the current price levels," says India Capital Markets' research report.

Angel on CESC - Target Rs 449

Angel Broking has maintained its buy rating on CESC with a target price of Rs 449 in its research report.

"CESC grew its net revenue by 4.7% yoy to Rs 820 crore (Rs 783 crore) in 1QFY2010, which was in line with our estimates. We expect CESC to record a CAGR of 13.9% in its top-line over FY2009-11, while the bottom-line would post a CAGR of 5% in the mentioned period. We have also assigned a FY2011E P/BV multiple to the company’s existing Power business at 1.25x, which is lower than its peers. Hence, we have arrived at a sum-of-the-part (SOTP) target price of Rs 449. Therefore, considering that the company is inexpensive on FY2011E P/BV basis, we maintain a 'Buy' on the stock," says Angel's research report.

Stock views on Transformers & Rectifiers, State Bank of India, Voltas

India Capital Markets on Transformers & Rectifiers - Target Rs 160


India Capital Markets has recommended a buy rating on Transformers and Rectifiers (India) with a target price of Rs 160 in its research report. "TRIL’s revenues from furnace transformers have risen from Rs 205 million during fiscal 2005 to Rs 450 million during fiscal 2008. The Company has registered a top line growth of 41.65% y-o-y. The Company has also been able to achieve a growth of 26.25% at the net profit level. With the metal prices coming down we expect the net profit margin to stabilize around 9%-10% in the coming years. We recommend BUY with a target price of Rs 160 based on a P/E multiple of 4x its FY 10 earnings. We believe the company offers decent opportunity to play on the India T&D sector story," says India Capital Markets' research report.


Sharekhan on State Bank of India - Target Rs 1516

Sharekhan has maintained its buy rating on State Bank of India, SBI with a price target of Rs 1,516 in its research report. "During the year-to-date period in FY2009, the SBI has witnessed a strong 40%+ growth in its core fee income. This could be attributed to the strong credit growth coupled with better product offering to its clients due to technological advancement. SBI is confident of maintaining this high growth momentum in its core fee income in the quarters to come. The bank has restructured around Rs 2,000 crore worth of loans during the current year till date period. We maintain our Buy recommendation on the stock with a price target of Rs 1,516," says Sharekhan's research report.


PINC Research on Voltas - Target Rs 55

PINC Research has recommended a buy rating on Voltas with a price target of Rs 55 in its research report. "Voltas Ltd has a high cash generating business model. Cash from operation has been positive in the last three years. Cash & Bank balances and current investments were Rs 3 billion & Rs 2.3 billion respectively at the end of FY08. Robust order book for MEP/HVAC segment with significant presence in Middle East market coupled with diversified business model, Voltas has the potential to post revenues at a CAGR of 21% for the next two years. Hence, we recommend a ‘BUY’ with a price target of Rs 55 on a 12 month investment perspective," says PINC's research report.

Stock views on NTPC, TIL, Allied Digital

India Capital Markets on Allied Digital - Target Rs 420
India Capital Markets has recommended a buy rating on Allied Digital Services with a target of Rs 420 in its research report. "ADSL’s standalone Q3FY09 revenue dipped 7.4% on a sequential basis to Rs 953 million (excluding exchange gains) led by 10.7 % fall in solution business while services were flat at Rs 283 million. Given the current environment, slower growth in the SI business is anticipated. However management has indicated increased opportunities in the maintenance part of the business. We recommend a BUY, target of Rs 420," says India Capital Markets' research report.


SKP Securities on TIL - Target Rs 150

SKP Securities has maintained its buy rating on TIL with a target of Rs 150 in its research report. "Net sales were down by 4.5% to Rs 189.6 crores in Q3FY09 over Q3FY08. PAT for the quarter fell by 30.2% at Rs 5.28 crores on y-o-y basis due to lower other income and higher interest and depreciation charges. To factor in the delay in expansion, reduced operating margins and general economic slowdown, we are revising our price target. However, we maintain our BUY recommendation on the stock with a target price of Rs 150 (previously Rs 300) at 6x FY10E earnings. Early improvement in demand outlook and preponement of its expansion plans remain key upside risks to our price target," says SKP Securities' research report.


Indiabulls Securities on NTPC - Target Rs 221

Indiabulls Securities Research has maintained its buy rating on NTPC with a target price of Rs 221 in its research report. "NTPC’s net sales for Q3’09 increased 20.9% yoy to Rs 112.8 billion. The increase in sales was primarily on account of higher fuel cost which is a pass-on cost for NTPC. We remain positive on NTPC’s long-term performance and its ability to generate consistent returns for its shareholders. Driven by encouraging revised tariff determination norms and other incentives proposed by the Central Electricity Regulatory Commission (CERC), we have increased our target price from Rs 195 to Rs 221 and maintain a Buy rating for the stock," says Indiabulls Securities' research report.

Stock views on Texmaco, Amtek Auto, ICSA

PINC Research on Texmaco - Target Rs 65

PINC Research has maintained its buy rating on Texmaco with a target of Rs 65 in its research report. "Texmaco’s Q3FY09 results were in line with expectations as net sales rose by 3.6% YoY due to the benefit of excise reduction to Rs 1.6 billion. The growth was led by the Heavy Engineering segment (wagons, process and hydromechanical equipment) which grew 13% to Rs 1.8 billion. We maintain our ‘BUY’ recommendation with a 12-month price target of Rs 65," says PINC's research report.


Angel Broking on Amtek Auto - Target Rs 110

Angel Broking has maintained its buy rating on Amtek Auto with a target of Rs 110 in its research report. "For 2QFY2009, Amtek Auto (AAL) reported 24.6% de-growth in Net Sales to Rs 241.3 cr (Rs 319.9 cr). The company reported a substantial 86.3% yoy decline in Net Profit to Rs 5.4 cr (Rs 39.2 cr) for the quarter. We maintain a Buy on the stock with a revised 18-month Target Price of Rs 110, which values the company at 0.5x FY2010E BV (adjusted for FCCB interest impact)," says Angel Broking's research report.


India Capital Markets on ICSA - Target Rs 150

India Capital Markets has maintained its buy rating on ICSA India with a target of Rs 150 in its research report. "ICSA reported a modest sequential top line growth (lowest since Q1 08) of 8.8% to Rs 3.04 billion. Revenue from the infrastructure business increased by nearly 39% while embedded solution dipped by 5%. PAT margins were further dented by increase in interest cost, though the effective decline was over 200 bp after factoring a 200 bp respite in the tax provision."

"The ongoing slowdown in the economy is bound to affect the power distribution utility given the fall in demand across industries. Our revised target price is Rs 150 at which the stock will trade at FY10E P/E of 3x and EV/EBITDA of 2x. We maintain BUY," says India Capital Markets' research report.

Stock views on HEG, Nava Bharat Ventures, Dishman Pharma, Gateway Distriparks

PINC Research on HEG - Target of Rs 205

PINC Research has maintained its buy rating on HEG with a target of Rs 205 in its November 5, 2008 research report. "HEG reported a decent 15% YoY growth in its revenues for Q2FY09 which stood at Rs 3 billion. A Rs 300 million provision for losses on account of mark-to-market on forex loans, dampened the profits, which fell by 25% on YoY basis. We believe that HEG would continue to maintain its margin and incremental volumes would drive its profit growth going forward."

"At the CMP of Rs 149, it is trading at P/E of 3.4x and EV/EBDIT of 2.3x discounting its FY10 estimates. We believe this is at substantial discount to its fair value, which also includes 36% stake in BEL. Hence we maintain ‘BUY’ recommendation on the stock with a revised price target of Rs 205 on a 12 month investment horizon," says PINC' research report.

PINC Research on Nava Bharat Ventures - Target of Rs 190

PINC Research has maintained its buy rating on Nava Bharat Ventures with 12-month price target to Rs 190 in its November 7, 2008 research report. "Nava Bharat Ventures Ltd. (NBVL) once again reported an excellent set of results in Q2FY09 as it posted a 157% increase in revenues, at Rs 4 billion, with 70% contribution from the ferro alloy division alone. Net profits grew by 127% to Rs 1.2 billion."

"At the CMP of Rs110, the stock is trading at a P/E of 2.3x and EV/EBIDT of 1.2x its FY10E earnings We believe these are very attractive valuations for a company with a very robust business model where the company can switch between power and ferro alloys production depending on the market conditions. Hence, we maintain our ‘BUY’ recommendation on the stock but revise our 12-month price target to Rs 190," says PINC's research report.

Reliance Money on Dishman Pharma - Target Rs 185

Reliance Money has recommended a buy rating on Dishman Pharmaceuticals and Chemicals, with a 12-month price target of Rs 185, in its report dated October 31, 2008. "Dishman Pharmaceuticals & Chemicals reported 35% growth in its consolidated revenues to Rs 2520 million during Q2FY09, which was in line with our expectations. To capture the market wide correction in the valuations, we are revising down our target price to Rs 185 (i.e 8x FY10EPS) from our earlier DCF based target price of Rs 320. Thus, we maintain our rating on Dishman Buy with revised target price of Rs 185," says Reliance Money's report.

India Capital Markets on Gateway Distriparks

India Capital Markets has maintained its buy rating on Gateway Distriparks, in its report dated October 31, 2008. "Gateway Distriparks Ltd (GDL) has reported impressive Q2FY09 numbers in revenues on back of increase in volume growth by 13% on qoq basis. On standalone basis GDL’s revenues grew by 32% on yoy to Rs 554 million in Q2FY09 on the back of rationalization of cost structure at Mumbai CFS. GDL overall handled 110,175 TEUs (up by 22% on yoy & 13% on qoq). GDL has deployed 12 rakes which are running on domestic and EXIM routes which will enhance to total of 40 rakes in next 18 months. Snowman’s performance has improved on operational level. We remain positive on the stock, but recent global worsening financial conditions may slow down the export – import (EXIM) trade. We continue to remain BUY on the stock," says India Capital Markets' research report.

Stock Views on Infosys, Garware Offshore,

Justtrade.in on Infosys - Target Rs 2090

Justtrade.in has maintained buy rating on Infosys Technologies with a price target of Rs 2090 in its report dated 28 th August, 2008."Infosys an IT and consulting company with revenues of over US$ 4 billion, designs and delivers technology enabled business solutions. It trades at a PE multiple of 20.8 based on EPS for trailing twelve months ended 30th June 2008, Price to Book ratio of 7.2 on 2008 Book-Value and Price to Sales ratio of 5.9 based on net sales for trailing twelve months ended 30th June 2008. On the basis of our research, we feel that this is a good stock to buy at the current market price of Rs 1708. If everything goes well, the price is likely to appreciate to Rs 2090, within 12 months, translating into a gain of about 22.5%." According to Justtrade.in report.

India Capital Markets on Garware Offshore - Target Rs 244

India Capital Markets has recommended a buy rating on Garware Offshore Services with a target price of Rs 244 in its October 29, 2008 research report. "Garware Offshore Services (GOSL) has reported excellent numbers in Q2FY09 with strong revenue growth in revenues 79% yoy at Rs 446 million. GOSL is currently trading at a discount of 30-40% to its peer group. Our target price of Rs 255 was based on DCF valuation on a long term perspective. However, contraction in multiples will lower our target price to Rs 144, which works at 4x FY2010 earnings. Hence we recommend a BUY on the stock," says India Capital Markets' research report.

KRChoksey on Petronet LNG - Target Rs 48

KRChoksey Research has maintained its buy rating on Petronet LNG with a target price of Rs 48 in its October 20, 2008 research report. "Net profit declined 10.5% y-o-y to Rs 103.4 crore for the company owing to lower taxes and higher other income. Effective tax rate drop 272 bps y-o-y to 31.1% which restricted decline in PAT. At the CMP of Rs 39.1, Petronet LNG is trading at 6.4x its TTM earnings and 6.3x its FY09E EPS of Rs 6.2. We maintain a buy on the stock with target price of Rs 48. At the target price the stock would be valued at 6.8x its FY10E EPS of Rs 7.0, and 1.5x P/BV," says KRChoksey's research report.

Stock views on Nava Bharat Ventures, Redington, NIIT

Hem Securities on Nava Bharat Ventures - Target of Rs 280

Hem Securities has maintained its buy rating on Nava Bharat Ventures with a target of Rs 280 in its September 22, 2008 research report. "The company posted excellent financial figures for the quarter ended June 2008. The net sales for the company gone up by 64.77% to Rs 2904.77 million for the Q1FY09 as against the net sales of Rs 1762.91 million for the Q1FY08.Since the stock seems to offer extremely good investment opportunities, we initiate a ‘BUY’ signal on the stock with a target price of Rs 280 in medium term investment horizon expecting an appreciation of about 28% from the current level,” says Hem Securities’ research report.

India Capital Markets on Redington - Target Rs 325

India Capital Markets has recommended a buy rating on Redington (India) (RDIL) with a target of Rs 325 in its September 23, 2008 research report. "RDIL is currently trading at a P/E of 13 on FY09E earnings with a PEG of 0.9. An important aspect to note is that the projected growth is only for the established business of RDIL & doesn’t include contribution from NBFC & proposed ADC. We initiate coverage on the company with a BUY recommendation, with a Target Price of Rs 325," says India Capital markets' research report.

Emkay Global on NIIT - Target of Rs 132

Emkay Global Financial Services has maintained its buy rating on NIIT with a target of Rs 132 in its September 22, 2008 research report. "We highlight that the company remains sound on achieving the earlier envisaged financial targets for FY09 (our growth and margin assumptions for the business segments are lower than company’s internal targets). We would look to review our ratings and target price post Q2FY09 results; however believe that there is little risk to our FY09 earnings estimates of Rs 5.4. Maintain BUY with a price target of Rs 132," says Emkay Global Financial Services' research report.