Stock views on Indraprastha Gas, Geodesic, Gujarat Industries Power

RR Financial on GIPCL - Target Rs 160

RR Financial Consultants is bullish on Gujarat Industries Power, GIPCL and has recommended buy rating on the stock with a target of Rs 160, in its research report.

"At the current market price Gujarat Industries Power Co is trading at discount of 2011E PE multiple. We recommend BUY rating on the stock with a target price of Rs 160 (32% upside) in 12 month with DCF valuation .The mid cap stock had performed very well for the past one month . We remain positive on the domestic Power industry as we expect it to grow in line with the country’s GDP growth. India’s peak power demand in excess of 11%, gives substantial opportunity to players like GIPCL. The company’s expansion plans are also on track, which we believe will help it continue on growth path ahead. The Gujarat Industries Power Company Ltd has the advantage of the backing of the Govt. of Gujarat (GOG) while at the same time full functional freedom is given to it.," says Bonanza research report.


Bonanza on Geodesic - Target Rs 130

Bonanza research has recommended accumulate rating on Geodesic with a target of Rs 130, in its research report.

"Geodesic Ltd has a niche product line. The company has reported near 100% CAGR in top line and bottom-lines over the past five years. The company has increased its top line by acquiring companies and increasing its portfolio of products. It has also ear marked FCCB funds for more such acquisition abroad that would further fuel its top line and bottom-line. The company has announced that it would soon acquire a social networking company and the deal is in finalization stage. Company is also planning to set up a small facility for manufacturing Simputer in Roorkee. Company has worked on many e-governance pilot projects and hopes to bag orders from the government for the same. Company has been focusing on developing economies such as China and Latin America as new target markets with good growth potential. Company also plans to increase the dividend payout in the coming years."

"However, the company management has stated that pricing pressure for its products exists. We have estimated that company would report a growth of nearly 11% in its top line but pricing would continue to drag the bottom line for FY10. We expect the company to report growth in bottom-line FY11, fueled by new product launch and additional acquisitions. At current market price of Rs95 the company is trading at a forward earning multiple of 4.17x for Consolidated EPS of 22.79 in FY10. We recommend investors to accumulate the stock at Rs 100 for a target of Rs 130 in twelve months time. However, due to market volatility a downside of 10-15% cannot be ruled out from the recommended range," says Bonanza research report.

Hem Securities on Indraprastha Gas - Target Rs 240

Hem Securities has recommended buy rating on Indraprastha Gas with a target of Rs 240, in its research report.

“With forthcoming Commonwealth Games 2010 and ambitious plan to expand company’s CNG Station coverage, greater focus by Delhi Government on reduction of pollution, robust capex plans through internal accruals and business opportunities from business expansion in NCT and CGD operations will drive the growth momentum in coming future. Further, the compnay expects to touch turnover of Rs.1250- Rs.1300 crores in the coming year. In wake of such growth, Indraprastha Gas Ltd. seems to be extremely attractive investment opportunity.”

“Presently, Indraprastha Gas is trading at Rs 183 which is at 14.85 times to its earnings and 3.75 times to its book value of Rs 48.82. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 240 in medium to long term investment horizon expecting an appreciation of about 31% from the current level of Rs 183,”says Hem Securities research report.

Stock views on Aventis Pharma, Indraprastha Gas, Alstom Projects

Karvy Stock Broking on Aventis Pharma - Target Rs 1770

Karvy Stock Broking has recommended outperformer rating on Aventis Pharma with a target of Rs 1770, in its research report.

“Aventis Pharma’s domestic formulations business (ex- Rabipur) has been growing by 14 % plus for the nine month period while exports has had a blip in the last quarter. We maintain our earnings but upgrade our multiple on account of current re- rating in the sector from 16.5x to 17x and value our core price target at Rs 1427 and add cash per share of Rs 342 per share and arrive at a price target of Rs 1770. On account of the upgrade in price target by 2.5 % we upgrade our rating in the stock to Outperformer, says Karvy Stock Broking research report.


IndiaInfoline on Indraprastha Gas - Target Rs 203

IndiaInfoline is bullish on Indraprastha Gas and has recommended buy rating on the stock with a target of Rs 203, in its research report.

"Indraprastha Gas has seen impressive volume in yesterday’s trading session and appears to have taken support between Rs 175-177 range. It could bounce till somewhere between Rs198-200 levels in the near term. The bullish formation is confirmed after the stock gave a close above its short-term moving averages with positive divergences in momentum oscillators. Any move above Rs190 could take the stock towards Rs 200 and higher in the short-term. Traders are advised to maintain a stop loss of Rs181 and go long. Book partial profit around Rs198 and exit around the levels of Rs 203, says IndiaInfoline research report.

IndiaInfoline on Alstom Projects - Target Rs 610

IndiaInfoline is bullish on Alstom Projects and has recommended buy rating on the stock with a target of Rs 610, in its research report.

"Alstom Projects (APIL) has displayed strength in last few trading sessions prior to Friday, trading in a narrow range amid volatility in the market. The stock had been consolidating in a range between the levels of Rs 521-560 from last four weeks. On Friday, the stock broke-out from the upper-end of this trading range. Moreover, on the daily chart, the stock has formed a Bullish Candlestick suggesting upside from the current levels. The daily RSI is already in strong buy mode. The stock has closed above all its key daily moving averages. A move past the levels of Rs 580-585 could take the stock towards the levels of Rs 605-610 in the short-term. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock between the range of Rs 571-581 with a stop loss of Rs 561 for a target of Rs 610," says IndiaInfoline research report.

Stock views on Indraprastha Gas, HBL Power Systems, Madras Cements

Sunidhi Securities on HBL Power Systems - Target of Rs 285

"HBL Power Systems, Q3FY09, sales surged by 4% to Rs 298 crore and net profit declined by 33% to Rs 18 crore due to economic slowdown. During the nine months of FY09, sales surged by 40% to Rs 958 crore and net profit by 65% to Rs 73 crore. OP & NP margins stood at 16.6% and 7.6% respectively against 14.7% and 6.5% in FY08. We recommend 'BUY' with a target of Rs 285 in the medium term," says Sunidhi Securities & Finance's research report.

Nirmal Bang on Indraprastha Gas - Target of Rs 190

"We expect the company to earn an ROCE of 38.4% in FY10E & 40.1% in FY011E. At Rs 138.5 per share the stock is trading at a discount of 37.1% from our intrinsic price of Rs 190 per share which is 13.9x FY10E earnings & 11.4x FY11E earnings. We reiterate our 'BUY' rating on the stock with a price target of Rs 190 per share with a long term view," says Nirmal Bang's report.

Emkay Global on Madras Cements - Target of Rs 111

"Madras Cement Q4FY2009 results are sharply below our expectations primarily on account of lower than estimated topline growth, higher raw material costs and losses in the windmill division. Cement revenues increased by 20.4% yoy to Rs 6.38 billion driven by 6.8% volume growth while realizations grew by 12.8% to Rs 4027/ton. The wind power vertical registered 24.7% yoy decline in revenues to Rs 40 million consequently registering a loss of Rs 75 million."

"During the quarter, MCL entered into contract to source its international coal/pet coke requirement at USD 40-50. This is substantially lower than our estimate for FY10. With MCL importing 70% of its coal requirements, we expect significant savings on the coal cost front. We maintain our earnings estimate for MCL at Rs 18.8/ share for FY10E and are introducing FY11E estimate at Rs 18.9/share. We are increasing our valuation multiple for MCL from 5x to 6x mainly on account of lowering of discount as compared to Shree Cement and better earnings outlook on account of significant cost benefits. We are revising our price target upwards to Rs 111 and maintain our 'HOLD' rating on the stock," says Emkay Global Financial Services' research report.

Karvy views on Tata Steel, Kalpataru Power, Indraprastha Gas

Karvy on Tata Steel - Target of Rs 270
Karvy Stock Broking has maintained its buy rating on Tata Steel with price target of Rs 270 in its research report.

"Tata Steel's Corus and other subsidiaries have reported EBIDTA of Rs 28.6 billion during Q3FY2009, which is 26% and 65% lower on YoY and QoQ respectively. Though the numbers are better than consensus estimates, the higher than expected EBITDA was mainly on account of undisclosed amount of hedging gains. EBITDA margins fell 350 bps YoY to 8.6%."
"We are revising our earnings estimate for FY2009 and FY2010. Earlier, we had factored in a 10% fall in steel prices and a 15% fall in raw material prices over FY2009 price level. Our revised estimates take into account a 25% fall in steel price a 20% fall in raw material price. As a result, our APAT estimate for FY2010 comes to Rs 48 billion, which is 30% lower than the previous estimate. Accordingly, our revised price target for the stock comes to Rs 270. We maintain our BUY rating," says Karvy Stock Broking's research report.


Karvy on Kalpataru Power - Target of Rs 284

Karvy Stock Broking has upgraded its rating on Kalpataru Power Transmission from market performer to buy with a price target of Rs 284 in its research report.

"Kalpataru Power Transmission (KPTL) announced on 4th March 2009, that the company has bagged orders worth Rs 3.73 billion from Power Grid Corporation of India (PGCIL) for supplying power transmission equipment in India. This is followed by a large order worth USD 250 million (Rs 12 billion) from Ministry of Energy and Water, Kuwait during January 2009. Including the new order from PGCIL, total order book of KPTL (standalone) is Rs 48 billion (including L1) with an average execution period of 22 months. The latest project secured from PGCIL is expected to commence from March 2009 and scheduled to be completed within 27 months. Hence, we expect partial revenue to be booked in FY10 and remaining in FY11."
"We maintain our revenue and earnings estimates and retain our price target of Rs 284, based on 4.5x FY10 earnings. However, owing to recent price correction, we upgrade our rating from Market performer to BUY," says Karvy Stock Broking's research report.


Karvy on Indraprastha Gas - Target of Rs 155

Karvy Stock Broking has maintained its buy rating on Indraprastha Gas with a target price of Rs 155 in its research report.


"IGL's Q3FY2009 results were depressed due to the provision of Rs 175 million made for a disputed demand from the gas supplier, which might have adversely affected the stock price performance. However, the future growth prospects for IGL appears bright driven by increased conversion of private four-wheelers to CNG, acceleration in the conversion of light commercial vehicles (LCVs) to CNG and a sustained growth in piped natural gas (PNG) customers.

At current levels, the stock quotes at a P/E of 6.7x FY2010E EPS of Rs 15.1 and 2.8x EV/EBIDTA of FY2010E. We continue to value the stock based on one year forward EV/EBIDTA multiple of 5x with target price of Rs 155. We believe that the 5x multiple captures the concerns over the sustainability of margins," says Karvy Stock Broking's research report.

KRChoksey on Indraprastha Gas, ICICI Bank, Dishman Pharma

KRChoksey on ICICI Bank - Target Rs 608

KRChoksey has recommended a buy rating on ICICI Bank with target price of Rs 608, in its research report. "The Bank registered 0.4% y-o-y growth in Q3FY09 in its Net Interest Income of Rs 1,990.5 crore as against Rs 1,982.2 crore in Q3FY08. Interest earned declined by 1.2% y-o-y to Rs 7,836.1 crore, while interest expended decrease by 1.8% y-o-y to Rs 5,845.7 crore. We recommend a BUY on the stock with a 12 month target price of Rs 608, giving an upside potential of 63% from current level," says KRChoksey's research report.


KRChoksey on Dishman Pharma - Target Rs 209

KRChoksey has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a target price of Rs 209, in its research report. "In Q3FY09, the company’s sales have increased by 36.5% on a Y-o-Y basis to Rs 282.0 crore driven by strong performance from MM segment, US subsidiary Carbogen Amcis and also from the consolidation of Solvay Vitamin business. The net profit of the company increased by 23.5% Y-o-Y to Rs 39.7 crore. We maintained BUY rating to the stock with a target price of Rs 209, implying an upside potential of 78.3%," says KRChoksey's research report.


KRChoksey on Indraprastha Gas - Target Rs 130


KRChoksey has maintained its buy rating on Indraprastha Gas with a target price of Rs 130, in its research report. "Revenue was in-line with our estimate and increased by 20.1% y-o-y and 2.0% q-o-q to Rs 219.4 crore owing to higher CNG & PNG volumes which were increased by impressive 18% y-o-y and 31% y-o-y respectively. Operating margin declined significantly to 31.2% as IGL had provided Rs 17.5 crore towards excess gas drawn from GAIL in Q2FY09 & Q3FY09. We have maintained a BUY on the stock with target price of Rs 130," says KRChoksey's research report.

Invest Shoppe Views on Indraprastha Gas , Gujarat State Petronet

Crude oil prices have come down to a level of $41 a barrel from a high of $146 a barrel last year. Consequently, upstream oil companies lost, but downstream companies gained. In terms of share price appreciation, downstream companies have outperformed the broader index, the Sensex.

Invest Shoppe on GUJARAT STATE PETRONET

GSPL owns and operates the second largest natural gas (NG) transmission network in India. The availability of natural gas is set to jump three-fold in the next four years. Moreover, its long-term contracts with Torrent Power and Reliance Industries (RIL) for transmission of natural gas are likely to be-come effective in the March 2009.

Invest Shoppe on INDRAPRASTHA GAS

Indraprastha Gas has maintained its consistent performance. The company has firm cash reserves of more than Rs 400 crore. It has already built the gas distribution infrastructure in Delhi, which connects more than 95,000 customers. The order of Supreme Court to states like Haryana and UP to set up CNG stations will help its business to grow.

Stock views on Welspun Gujarat, Sanwaria Agro Oils, Indraprastha Gas, Indian Oil Corporation

KRChoksey on Indraprastha Gas - Target of Rs 130


KRChoksey Research has recommended a buy rating on Indraprastha Gas with a target price of Rs 130 in its November 13, 2008 research report. "IGL reported net sales of Rs 215.2 crore, up 23.6% Y-o-Y, on the back of increase in volume of CNG by 22.7% and PNG by 26.7% to 117.2 million Kg and 13.3 mmscm respectively. We recommended a BUY on the stock with target price of Rs 130, giving an upside potential of 23%. At the target price the stock would be valued at 9.0x and 7.6x its FY09E & FY10E EPS of Rs 14.5 and Rs 17.0 respectively," says KRChoksey's research report.



KRChoksey on Sanwaria Agro Oils - Target of Rs 45


KRChoksey has recommended a buy rating on Sanwaria Agro Oils with a target of Rs 45 in its report. The geographical benefits which the company enjoys on account of all its plants being located in the state of MP (largest producer of soybean seeds) is a key advantage over its peers. Further, SAOL will benefit from setting up of wind turbine generators which will bring down the operating cost and thus enhance margins by 230bps. We expect the profit margins to improve going forward as interest rates cool down."


"At CMP of Rs 32, the stock is trading at 6.4x FY08 earnings of Rs 4.98. We recommend a “BUY” rating on the stock with a price target of Rs 45 based on our P/E valuation, with an upside potential of 41% from current levels. At the target price, the stock would be valued at 6.6x FY09 EPS of 6.8," says KRChoksey's research report



Asit C. Mehta on Welspun Gujarat - Target of Rs 190


Asit C. Mehta has maintained its buy rating on Welspun Gujarat Stahl Roh with a revised target price of Rs 190 in its November 13, 2008 research report. "WGSRL has an order book of USD 2 billion, which provides revenue visibility until FY10. Current orders sufice current capacity. As new capacity becomes operational, the company should attract orders. However, with the current global credit crisis we expect new orders to come in at a slower pace."


"We believe that the company will benefit in the near term on account of the capex it has incurred in the pipes segment. We therefore maintain a positive outlook on the stock and reiterate a “BUY” recommendation with a revised target price of Rs 190, which is equivalent to a P/E multiple of 5 times its FY10E EPS," says Asit C. Mehta's research report.


Indiabulls Securities on IOC - Target of Rs 479


Indiabulls Securities Research has upgraded its rating on Indian Oil Corporation (IOC) to buy with a target price of Rs 479 in its November 26, 2008 research report. "With global oil prices at their peak in Q2’09, Indian Oil Corporation Limited (IOC) reported a net loss of Rs 70.5 billion as it was unable to pass the full effect of the price increase because of government controls. We have revised our estimates to incorporate the effect of the recent fall in the crude prices and the depreciating rupee. Based on our relative valuation, we have arrived at a target price of Rs 479, which provides an upside potential of 17%. Thus, we have upgraded our rating on the stock to Buy," says Indiabulls Securities' research report.

Stock Views on Indraprastha Gas, Sadbhav Engineering, NTPC

KRChoksey on Indraprastha Gas - Target of Rs 130

KRChoksey Research has recommended a buy rating on Indraprastha Gas with a target price of Rs 130 in its November 13, 2008 research report. "IGL reported net sales of Rs 215.2 crore, up 23.6% Y-o-Y, on the back of increase in volume of CNG by 22.7% and PNG by 26.7% to 117.2 million Kg and 13.3 mmscm respectively. We recommended a BUY on the stock with target price of Rs 130, giving an upside potential of 23%. At the target price the stock would be valued at 9.0x and 7.6x its FY09E & FY10E EPS of Rs 14.5 and Rs 17.0 respectively," says KRChoksey's research report.

Angel Broking on Sadbhav Engineering - Target of Rs 718

Angel Broking has maintained its buy rating on Sadbhav Engineering with a target price of Rs 718 in its November 12, 2008 research report. "For 2QFY2009, Sadbhav Engineering (SEL) reported Net Sales numbers, which were below our expectations. The company registered 22% yoy growth in Net Sales to Rs 124.2 crore (Rs 101.8 crore) as against our expectation of 41% growth at Rs 143 crore. We value, SEL at 6x FY2010E standalone Earnings assigning Rs 430 per share. We value SEL’s portfolio of BOT assets at Rs 399 crore (Rs 420 crore earlier), contributing Rs 288 per share excluding NSEL Annuity project, which we believe has no value while factoring in current increased cost of financing and arrive at a conservative SOTP Target Price of Rs 718 (Rs 1,036). We maintain a Buy on the stock," says Angel's research report.

Hem Securities on NTPC - Target of Rs 183

Hem Securities has initiated a buy rating on NTPC with a target price of Rs 183 in its November 15, 2008 research report. "The company has posted decent results for the quarter ended September 2008. The Net sales have surged to Rs 100911 million with a year over year growth of 25.87 per cent. Presently, the stock is trading at Rs 149 which is at 17.65 times to its earnings and 2.18 times to its book value of Rs 68.49. Since the stock seems to offer extremely good investment opportunities, we initiate a ‘BUY’ signal on the stock with a target price of Rs 183 in medium term investment horizon expecting an appreciation of about 22% from the current level of Rs 149," says Hem's research report.

Stock Views on Infotech, Indraprastha Gas, Patel Engg

PINC Research on Infotech - Target of Rs 58
PINC Research is bullish on 3i Infotech and has maintained buy rating on stock with a target of Rs 58, in its November 11, 2008 report, "At the CMP of Rs 43, 3i is trading at a P/E of 3.0x and EV/EBIDT of 3.8x its FY09 estimates. We believe that 3i’s exposure to the BFSI vertical, a leveraged balance sheet and its ability to fund new growth would continue to be concern areas in the coming quarters but we believe the recent de-rating of valuations factors in these concerns to a large extent. Hence, we believe that at current levels the stock offers value vis-a-vis growth rates and hence we maintain our ‘BUY’ recommendation with a 12 month price target of Rs 58," says PINC's research report.

KRChoksey on Patel Engg - Target Rs 347

KRChoksey Research has maintained its buy rating on Patel Engineering, with price target of Rs 347. "At the CMP of Rs 169 the stock is trading at a forward P/E of 7.3x, based on its FY09E EPS and 6.0x its FY10E EPS. We anticipate slowdown in order inflow and an increase in interest expense, which will impact the net profit margins of the company. We therefore downgrade our target price from Rs 501 to Rs 347, however, maintaining a BUY rating," says KRChoksey's research report.

Parag Parikh on Indraprastha Gas - Target of Rs 154.5

Parag Parikh Financial Advisory Services has recommended a buy rating on Indraprastha Gas with a target price of Rs 154.5 in its November 1, 2008 research report. "For the quarter ended 30th September, 2008 Indraprastha Gas Limited (IGL) has posted 24.5% growth in net sales to Rs 2,166.7 million as compared to Rs 1,740.96 million for the quarter ended 30th September 2007. We have valued the company on DCF as well as PE multiple basis and recommend a BUY for the scrip at the current levels with a price target of Rs 154.5 giving an upside of 49.20%. At our target price, the stock will trade at 11.5x FY09 earnings," says Parag Parikh Financial Advisory Services' research report.

LKP Securities views on Midcap Oil & Gas stocks

INDRAPRASTHA GAS

IGL has captured significant market share to be a leader in CNG distribution in NCR & NCT (Delhi) region. Geographical expansion in industrial belts like Greater Noida & Ghaziabad and private vehicles conversion to CNG, along with Delhi government mandatory regulation will help company’s growth. With EPS of Rs.12 for FY09E, it looks attractively valued.

PETRONET LNG

Petronet LNG imports liquefied natural gas and has regasification facilities of 5 million metric tonne per annum (MMTPA) at Dahej augmented to 10MMTPA scalable to 12.5MMTPA by 2009. Company has grown at compounded annual growth rate of 68% in revenues in last 3 years. We believe outlook on gas sector remains positive in India augments well for the stock.

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• Noida Toll Bridge Company (NTBC)


• Cosmo Films - Second-largest manufacturer of biaxially oriented polypropylene (BOPP) films


• Bilcare - Leading players in the packaging industry


• Indraprastha Gas


• Max India - In the insurance segment, plastic packaging, hospitals, clinical research services and healthcare staffing services


• Apollo Hospitals