Stock Views on Glodyne Technoserve, Bank of Maharashtra, Jubilant Organosys

Reliance Money on Glodyne Techno - Target Rs 575

Reliance Money has maintained its buy rating on Glodyne Technoserve, with price target of Rs 575, in its report.

"We view this acquisition as a positive development for Glodyne Technoserve, however we are still awaiting for the finer details of the deals and integration process. We maintain our earlier estimates for FY10E and FY11E for the company and will rework on our estimates after our meeting with the Glodyne’s management. At the current market price Rs 466, Glodyne is trading 5x FY10E and 4x FY11E. We maintain 'BUY', with a target price Rs 575," says Reliance Money's report.

Sushil Finance on Bank of Maharashtra - Target Rs 46

Sushil Finance has recommended a buy rating on Bank of Maharashtra, with price target of Rs 46, in its report.

"Bank of Maharashtra (BOM) has high CASA share of 35.7% will help the bank in maintaining its low funding cost (5.9% in FY09). Strong business growth, high CASA ( 36%), decent asset quality, sustainable ROE of about 16%, strong network base, comfortable CAR of 12% with finance ministry promising to infuse the required capital in BOM, scope for growing advances due to low Credit deposit ratio and decent dividend yield of +5% are the other key positives for the bank. Stock is trading at a valuation of 0.7x FY11E ABV and 3.3x FY11E Earnings. Buy with price target of Rs 46," says Sushil Finance's report.

Reliance Money on Jubilant Organosys - Target Rs 203

Reliance Money has maintained its buy rating on Jubilant Organosys with a revised target price of Rs 203 in ite report.

"Jubilant Organosys reported a muted growth of 8% in its consolidated revenues to Rs 9013 million in Q1FY10, as the Industrial and Performance Products (IPP –that contributes about 30% of total revenue) Revenues saw 8% decline on account of lower realization and product rationalization. Despite global slowdown and inventory issues, Jubilant has been delivering steady growth in its CRAMS operation and we expect similar trend going ahead. Further increasing R&D pacts provide us long term visibility for the company. Also, the margin expansion seems to be continuous process for Jubilant. Looking at the steady revenue growth with better profitability and reducing balance sheet risk for Jubilant, we maintain our 'BUY' rating with the revised target price of Rs 203 (7x FY11EPS), " says Reliance Money's report.

Stock Views on Nava Bharat Ventures, Jubilant Organosys, Infosys

FinQuest Sec on Nava Bharat Ventures - Target Rs 396

FinQuest Securities has recommended a buy rating on Nava Bharat Ventures, with price target of Rs 396, in its report.

"We expect realignment of business strategy to be value accretive and will lead to re-rating of the stock. We expect NBVL to be treated as Power generation utility as power will contribute 60% to topline in FY12E and the company will attain 1125 MW of power capacity by FY14E. We don't expect any expansion in Ferro alloys and sugar. Our SOTP valuation gives a target of INR 396. The company is currently trading at 4.4x and 3.0x its FY11E PE and EV/EBITDA respectively. We rate the stock as 'BUY'," says FinQuest Securities' report.

Karvy Stock Broking on Jubilant Organosys - Target Rs 210

Karvy Stock Broking has maintained its buy rating on Jubilant Organosys, with a price target of Rs 210, in its report.

"Jubilant Organosys has set a goal to grow its revenue and profit by 1.5x and 2x respectively in the next three years which will be on back of greater asset efficiency. The company has set a target of 30 % ROE for FY 2013E. We downgrade our EPS for FY 2010E by 16.3 % to Rs 18 and by 3 % to Rs 26 for FY 2011E on account of lower other income, higher interest cost, amortisation on account of foreign currency translation reserve and higher tax. We decrease our price target by 2.3 % to Rs 210 based on 8x FY 2011E. The overhang on stock does remain on account of the FCCB repayment of USD 270 mn by CY 2011. We maintain our 'BUY' rating on the stock, with price target of Rs 210," says Karvy Stock Broking's research report.

Reliance Money on Infosys - Target Rs 1985

Reliance Money has recommended a hold rating on Infosys Technologies, with price target of Rs 1985, in its report.

"In the last three odd months, most of the IT stocks had a sharp run up owing to smart rally in the domestic market, however there is not much improvement at the micro levels, nevertheless there is a marked improvement in the risk appetite and optimism towards a early 2010 recovery in the sector. We believe, Infosys with its robust business model coupled with strong margin management is well placed to take early advantage of the curve. In terms of stock price, we expect a near term correction after a sharp 28% run in the stock price in last three months. We recommend 'HOLD' on Infosys with a price target of Rs 1985, at our target price stock would be valued at 20x FY10E and 17x FY11E," says Reliance Money's report.

Stock views on Everest Industries, Jagran Prakashan, Jubilant Organosys

Sunidhi Securities on Everest Inds - Target Rs 125

Sunidhi Securities & Finance has recommended a buy rating on Everest Industries, with price target of Rs 125, in its report dated.


"Everest Industries’s service & production capability, initiatives towards further expand the product range and the market, offer of more choices and solutions to its customers coupled with the sturdy growth rate in demand give strong revenue visibility in the coming years. At the CMP of Rs 90, the share is trading at a P/E of 4 on FY10E and 3.5 on FY11E. We recommend 'BUY' with a target of Rs 125 in the medium term," says Sunidhi Securities & Finance's report.


Angel Broking on Jagran Prakashan - Target Rs 89

Angel Broking has upgraded its buy rating on Jagran Prakashan, with price target of Rs 89, in its report dated.

"We re-iterate Jagran as our top pick in the print media space and remain positive on its future outlook owing to its dominant position in the Hindi Belt (has recently launched a National daily in Delhi), increasing colour ad inventory, ability to attract high amount of local advertising and better traction in new initiatives (I-Next, City Plus, Yahoo Portal, OOH and Event Management). Moreover, we estimate the company’s 1QFY2010 results to reflect additional growth due to the Election spend. At Rs 78, the stock is trading at 15.7x FY2011E Earnings of Rs 4.9. We upgrade the stock to a Buy with a revised Target Price of Rs 89 (Rs 80)," says Angel Broking's report.

Karvy Stock Broking on Jubilant Organosys - Target Rs 215

Karvy Stock Broking has recommended a buy rating on Jubilant Organosys, with price target of Rs 215, in its report .

"The company will incur a capex of Rs 2.5 billion in FY 2010E and Rs 2 billion in FY 2011E. Investment of Rs 1 billion would be in APIs and Rs 1.6 billion in proprietary products and exclusive synthesis. We maintain our FY 2010E estimates as the guidance is in line with our forecast. We introduce FY 2011E estimates and roll over our price target to FY 2011E. The stock is currently quoting at PE of 7.8x FY 2010E and 6.2x FY 2011E and EV/EBDITA of 7.4x FY 2010E and 6.3x FY 2011E. This is mainly on account of the high leverage in the company's books. We rate the stock as a 'BUY' with a price target of Rs 215 based on 8x FY 2011E," says Karvy Stock Broking's report.

Stock Views on Varun Shipping, Biocon, Cadila Healthcare, Great Offshore

Karvy on Varun Shipping - Target of Rs 61

Karvy Stock Broking has maintained its buy rating on Varun Shipping Company with a target price of Rs 61 in its research report.

"The timely exit from drybulk segment in FY08 where freight rates have fallen by 85% since May 2008 and entry into promising deepwater support servicessegment by acquiring high end anchor handling tugs (AHTS) are expected to help the company to grow operating profits in current turbulent time in shipping. The Company has significantly reduced cyclicality associated with the shipping industry with selection of low risk assets and building diversified fleet across three segments viz. the Liquefied Petroleum Gas i.e. LPG, crude and offshore."

"We expect consolidated revenue to increase by 2.2% to Rs 9.69 billion in FY10 and by 12.4% to Rs 10.9 billion in FY11 and net profit to decline by 10.7% to Rs 1.25 billion in FY10 and increase by 42.2% to Rs 1.77 billion in FY11. We maintain our valuation at 30% discount to NAV with target price of Rs 61 and maintain Buy rating," says Karvy Stock Broking's research report.

IIFL on Biocon - Target of Rs 181

IIFL has maintained its buy rating on Biocon with a price target to Rs 181 in its research report.

"Our recent meeting with Biocon’s management persuades us that the company is stable and growing, notwithstanding the large forex losses that it suffered in FY09 and those that we believe it will continue to suffer to a lower extent for 3-5 years. The biosimilar insulin opportunity in the regulated markets could provide significant upside over the next 3-4 years. The company plans to launch biosimilar insulin in Europe in 1HCY11 and its big pharma partner is making headway towards a launch in the US. Earnings in 4QFY09 will again likely be weighed down by a large forex item, but such losses would be significantly lower thereafter. The stock’s current valuation a PE of 9x on core FY10ii earnings is attractive, in our view. We maintain BUY and raise our price target to Rs 181," says IIFL's research report.

Sharekhan on Cadila Healthcare - Target of Rs 372

Sharekhan has maintained its buy rating on Cadila Healthcare with a price target of Rs 372 in its research report.

"Zydus Cadila (Zydus) has signed a new collaborative drug discovery and development deal with US-based Eli Lilly to develop drugs focusing on the area of cardiovascular diseases. As per its earlier deals with Piramal Healthcare, Jubilant Organosys and Suven Life sciences, Eli Lilly has adopted a similar approach and will pay Zydus for finding new drug candidates and taking them to mid-stage trials, at which point Eli Lilly will have the option to step in and licence the most promising therapies."

"We maintain our positive stance on Zydus, given the strong traction across its business segments. The strong traction in the domestic and the US businesses, and the increasing visibility of the business from the Hospira joint venture reinforce our view on Zydus’ continued growth prospects. We reiterate our Buy recommendation on Zydus with a price target of Rs 372," says Sharekhan's research report.

Stock views on Jain Irrigation, Ranbaxy, Jubilant Organosys

Karvy on Jubilant Organosys - Target Rs 165

Karvy Stock Broking has maintained its buy rating on Jubilant Organosys with a price target of Rs 165 in its research report.


"Jubilant Organosys Limited (Jubilant) has given clarification (announcement dt.26.02.09) on both FCCBs (Foreign Currency Convertible Bonds) buyback resource funding and discount rate on USD 11.1 million FCCB issue that was bought back earlier. Jubilant has repurchased its FCCB issue worth USD 59.4 million, of which USD 3 million from second issue worth USD 75 million and USD 56.4 million from third issue worth USD 200 million."

"The company has converted total USD 57.04 million, of which, USD 34.7 from first issue worth USD 35 million and USD 22.34 million from second issue worth USD 75 million. We are upgrading our price target by 3.13% to Rs 165 maintaining our PE multiple constant at 6.8x based on FY10E diluted EPS at Rs 24.4. We continue to rate the stock as a "BUY," says Karvy Stock Broking's research report.

Angel Broking on Ranbaxy Laboratories - Target Rs 277

Angel Broking has maintained its buy rating on Ranbaxy Laboratories with target price of Rs 277 in its research report.

"The USFDA has invoked Application Integrity Policy (AIP) on Ranbaxy's Paonta Sahib facility citing that the company has falsified data and results in approved and pending ANDA filed from the facility. Prior on September 16, 2008, the USFDA had issued two warning letters and instituted an Import Alert barring entry of all finished drug products and active pharmaceutical ingredients (API) from Ranbaxy's Dewas, Paonta Sahib facilities due to violation of US current Good Manufacturing Practices requirements."


"The Ranbaxy stock has slipped by 18% post announcement of the USFDA action. We maintain a Buy on the stock, with a Target Price of Rs 277 wherein the Core business is valued at Rs 178 giving it a fair P/E of 16x CY2009E Core Earnings of Rs 11.1, Rs 24 for the Non-Core Income and NPV Rs 75 is ascribed to the FTF opportunities available to the company," says Angel Broking's research report.


IIFL on Jain Irrigation - Target Rs 377

IIFL has recommended a buy rating on Jain Irrigation with target price of Rs 377 in its research report.

"Our recent meeting with JISL’s management indicated that:
(a) the company has scaled back its capex estimates to Rs 1.5 billion annually from Rs 2 billion earlier; and
b) the company’s leverage levels (debt/equity) should decline over the next couple of years, following the company’s scaling back of capex and improvement in working capital conditions.

Furthermore, despite 60% of JISL’s long-term debt being denominated in forex, the rupee’s depreciation does not pose the threat of an imminent cash loss, since most of this is repayable during FY11-13.

The company is in talks with IFC to raise longterm funds of USD 30 million, of which USD 15 million could be in the form of equity (implying dilution of 2.8% at CMP). This should cushion the company’s debt/equity, taking peak net debt/equity to 0.9x. We remain bullish on growth in the micro-irrigation segment and expect 25% earnings CAGR for the company during FY09-11ii. Buy, target price of Rs 377," says IIFL's research report.

Stock Views on Lanco Infratech, Bharti Airtel, Jubilant Organosys

Karvy on Jubilant Organosys - Target of Rs 220


Karvy Stock Broking has upgraded its rating on Jubilant Organosys from outperformer to buy with a target price of Rs 220 in its research report. "We maintain our positive outlook on the company from long term perspective considering CRAMS (Contract Research and Manufacturing services) industry dynamics and company's unique business model. We maintain our net revenues estimates at Rs 37.34 billion in FY09 and Rs 48.73 billion in FY10E and EBITDA margin estimates at 18.7% in FY09 and 18.9% in FY10E. On account of repayment of FCCBs, we have assumed existing equity of Rs 147.5 million outstanding shares for FY10 and hence earnings estimates are increasing by 13% to Rs 32.66. We have factored higher interest expense for FY10 on back of 42% premium payment on FCCB pending issue and increase in average debtor and inventory days due to tighter liquidity position prevailing in the market. We upgrade our price target by 10% to Rs 220 based on PE of 6.73x on FY10E basis. We upgrade the rating from "Outperformer" to "BUY" on account of earnings upgrade and steep fall in stock price by 34% since our last update," says Karvy's research report.


VCK Share on Bharti Airtel - Target of Rs 910


VCK Share and Stock Broking Services has maintained its buy rating on Bharti Airtel with a target price of Rs 910 in its research report. "We maintain our ‘BUY’ rating on the stock with target price at Rs 910. The global bidding in 3G auctions, highly competitive situation and falling ARPUs are the downside risks. With a market share of 25% and low debt-equity ratio, we are highly positive on the stock. Bharti is awaiting clarification on definition of development blocks for 2% reduction of USO levy and is confident of being the biggest beneficiary from the same by virtue of having the largest wireless network. The company continues to maintain its leadership position with strong earning visibility and excellent execution record. We believe that Bharti will continue to be the market leader with 25% market share by the end of FY10. We arrive at our Rs 910 target price for Bharti Airtel based on a combination of EV/EBITDA, P/E, P/CEPS, and P/BV analysis," says VCK Share and Stock Broking Services' research report.


Angel on Lanco Infratech - Target of Rs 320


Angel Broking has maintained its buy rating on Lanco Infratech with a target price of Rs 320 in its research report. "Hyderabad-based Lanco operates in three different businesses in the Infrastructure space, viz, Power, Real Estate and Construction & Engineering, Procurement and Construction. Recently, Lanco had bid for the Rs 18,000 crore ultra mega power project (UMPP) at Tilaiya in Jharkhand in competition with NTPC, Reliance Power and Tata Power. This move by Lanco is in line with its strategy to expand in the Power space and become the biggest independent private player. However, we do not believe that this should materially impact its Financials or Stock price in the short term. Based on the sum-of-the-parts (SOTP) methodology, we have arrived at a target price of Rs 320 and maintain a Buy on the stock," says Angel's research report.

Stock Views on Jubilant Organosys, Nagarjuna Construction, IOB, Axis Bank

Emkay Global on Jubilant Organosys - Target Rs 224


Emkay Global Financial Services has maintained its buy rating on Jubilant Organosys with a target of Rs 224 in its December 8, 2008 research report. "The stock price of Jubilant has come down by 31% in the last one month and has underperformed both- the Sensex as well as BSE healthcare index. We expect robust growth opportunities in outsourcing to be the key growth driver for the company. Being the largest CRAMS company in India, Jubilant is likely to capture a major share of the global outsourcing opportunity."


Prabhudas Lilladher on Nagarjuna Construction - Target Rs 90


Prabhudas Lilladher has upgraded its rating on Nagarjuna Construction Co from accumulate to buy with a target of Rs 90 in its December 4, 2008 research report. "The stock has also seen steep correction from its yearly highs and a robust order book along with lower interest and commodity rates makes it attractive at current levels. The company is also now expected to limit on road BOTs reducing business risk. We upgrade our rating from Accumulate to BUY, target of Rs 90," says Prabhudas Lilladher's research report.


Karvy Stock Broking on Indian Overseas Bank (IOB) - Target Rs 144


Karvy Stock Broking has maintained its buy rating on Indian Overseas Bank (IOB) with a target price of Rs 144 in its December 8, 2008 research report. "We are revising downward Indian Overseas Bank's earning estimates by 4.2% to Rs 11.7 billion in FY10 due to pressure on margin, reduced other income (mainly due to relatively negligible treasury income) and higher credit cost. Based on our revised estimates, we reduce our IOB's earning estimates by 4.2% Rs 11.7 billion in FY10 and revise downward our target price by 12.4% to Rs 144; we re-iterate our BUY rating with a target price of Rs144. Based on our target price the stock would trade at 1.52x adjusted book value FY10," says Karvy's research report.


ULJK Securities on Axis Bank - Target of Rs 596


ULJK Securities has recommended a buy rating on Axis Bank with a target of Rs 596 in its December 2, 2008 research report. "Axis Bank has been able to sustain a high growth in its loan book since the last five years and the Bank is able to maintain the same growth during H1FY09. The return ratios of the Bank are among one of the highest in the industry. Looking at its exponential growth prospects and the valuation, we believe the stock provides an investment opportunity for a decent return in the medium to long term. At our target price, Axis Bank will trade at a P/BV of 1.9x on the FY09E book value of Rs 277 and a P/BV of 1.6 on the FY10E book value of Rs 319, Buy," says ULJK Securities' research report.

Karvy Stock Views on Defensive Healthcare / Pharma - Part II - Aventis Pharma, Unichem Labs, Jubilant Organosys

Aventis Pharma - Target of Rs 1000

Karvy Stock Broking has maintained its buy rating on Aventis Pharma with a target of Rs 1000 in its October 13, 2008 research report. "Net revenues for the quarter are expected to be higher by 8 % to Rs 2.44 billion. Domestic revenues are expected to show 8 % growth for the quarter. Exports are expected to grow by 8 % to Rs 520 million for the quarter and continue the positive trend set in the preceeding quarter. Currently the stock is quoting at 12.2x CY2008E and 11.1x CY 2009E. We believe the company will undergo a rerating process as it delivers better results going forward. We continue to rate the stock as a BUY with a price target of Rs 1,000 based on 14x CY 2009E," says Karvy Stock Broking's research report.

Unichem Labs - Target of Rs 240

Karvy Stock Broking has maintained its buy rating on Unichem Laboratories with a target of Rs 240 in its October 14, 2008 research report. Net revenues for the quarter is expected to grow by 18% to Rs 1,771 million on the back of 15 % growth in domestic formulations business to Rs 1357 million while there has been greater traction in exports with growth of 23 % to Rs 374 million on account of depreciation of the rupee and buoyed by API exports."

"Profits for the quarter are expected to be higher by 43.7% to Rs 305 million. We downgrade our price target by 11 % to Rs 240 based on 8x FY 2010E. We maintain BUY on the stock," says Karvy Stock Broking's research report.

Jubilant Organosys - Target of Rs 300

Karvy Stock Broking has recommended a buy rating on Jubilant Organosys with a target of Rs 300 in its October 13, 2008 research report. "We expect 37% CAGR growth in net revenues from Rs 24.9 billion in FY08 to Rs 46.8 billion in FY10E driven by strong growth from the CRAMS segment coupled steady revenues anticipated from the IPP (Industrial Performance and Products) business. The higher molasses and alcohol prices will remain a concern for the company. The stock is currently quoting at 9.6 x FY 2009E (EPS Rs 21.5) and 8.2 x FY10E (EPS Rs 25.3). On account of compression in valuations we reduce our price target by 21 % to Rs 300 based on 12 x FY 10E, Buy," says Karvy Stock Broking's research report.