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 Bombay Rayon Fashion, Century Enka, Unichem Laboratories

Sushil Finance on Bombay Rayon Fashion - Target Rs 282

Sushil Finance has maintained buy rating on Bombay Rayon Fashion with a target of Rs 282 in its report

"Bombay Rayon Fashion Ltd. (BRFL) is one of the leading, vertically integrated textile companies in India. It has a strong presence across the entire value chain of design, yarn dyeing, weaving, fabric processing, garment manufacturing & retail and operates through 32 manufacturing facilities. BRFL has a strong presence in designer garment segment & is catering to various international brands like Zara, Guess, Next, Polkar, Warrior, Massimo Dutti, DKNY, Wrangler etc. Its exports are mainly in USA and Europe and it contributes 65% of its revenues."
"BRFL has acquired 3 business units in the past viz. UK based “DPJ Clothing”, “Leela Scottish Laces” and “LNJ Apparel”.

The acquisitions have helped in increasing capacities & expanding customer base in India & abroad. It also acquired ‘GURU’, an established high- end European retail brand. Most of its expansions has gone on stream this year and hence we expect BRFL to post a consolidated APAT growth of 34% in FY10 and 53% in FY11. At the CMP of Rs 191, the stock trades at an attractive valuation of 7.9x its FY11 earnings and P/BV of 0.7x FY11E. Buy. Target Rs 282, "says Sushil Finance research report.

Sunidhi Securities on Century Enka - Target Rs 320

Sunidhi Securities & Finance has come out with a research report on Century Enka (CEL). The research firm has recommended buy rating on the stock with a target of Rs 320, in its report
"CEL is likely to post an EPS of Rs 54.8 in FY10, which would go up to Rs 61.5 in FY11. At CMP of Rs 260, the share is trading at a P/E of 4.7x on FY10E and 4.2x on FY11E. Century Enka in its weekly chart can be seen in a clear uptrend since early-2009. The index is expected to reach its primary peak at Rs 275. The ability of the stock to sustain above Rs 275 should take it to Rs 320. We recommend buy with a target of Rs 320", says Sunidhi Securities & Finance.

Karvy Stock Broking on Unichem Labs - Target of Rs 340

Karvy Stock Broking has recommended outperformer rating on Unichem Laboratories with a target of Rs 340, in its research report.

“Unichem Laboratories has a balanced portfolio of products in the acute and chronic space. Acute therapy products comprise around 43% of the product basket whereas the remaining is contributed by chronic therapies. In the acute space the company has major products in the antibiotics space namely Ampoxin whereas in the Chronic space revenues mainly come from CVS, diabetology and CNS products. Losar group of products is the main product in the chronic space. While the chronic therapy franchise of the company has been growing, acute therapy products have witnessed stagnant sales. Though gross margins are lower in acute the ramp up can be quicker in this segment.”

“Going forward, the company intends to focus on acute products and hospital business in the next six months. The company also intends to enter gynaecology and injectables antibiotics business in the medium term. We expect the acute products business to gain traction in the near term. Unichem intends to launch 20 new products in the next 12 months which will also include nephrology products. The company is hopeful of a revenue growth of 10% for FY2010 and 10-12% for FY2011. On account of revenue traction in domestic formulations business the most profitable business segment and possible breakeven of UK subsidiary, ramp up in US business and API export business. We maintain our revenue and earnings estimates for FY 10E and FY 11E. On account of price performance in the stock we downgrade our rating on the stock to Outperformer with a price target of Rs 340 based on 8.5x FY 2011E.”

Stock views on Upper Ganges Sugar, Bajaj Hindusthan, Repro India

Fairwealth Securities on Upper Ganges Sugar - Target Rs 150

Fairwealth Securities has recommended buy rating on Upper Ganges Sugar with a target of Rs 150 in twelve month perspective, in its research report.

“Sector:
a) Prices at 25 cents/pound are ruling at 28 year high up by more than 80% this year but lower than their all time high of 66 cents/pounds.
b) Sugar is only commodity which is a combination of 3 in 1 industry, namely FMCG, Power and Chemical.
c) Supply is diminishing due to draught and wrong government policies in India. Demand supply mismatch stands at record high 7-10 million tonne per year.
d) Regular increase in demand year after year thereby putting a pressure on supply, resulting in adjustment of sugar prices.
e) Little scope for increasing supplies in next one year. “

“Upper Ganges Sugar & Industries growing with vision under the leadership of KK Birla Group Company, the business possesses huge management expertise. Major expansions already done to take benefit of the current bull run. Strong vision for the future. Company’s gross revenue on TTM basis grew by 40 % to Rs 479 crore in Q2FY10 as against Rs 341 crore previous year (Q2FY09). Company reported PAT of Rs 12.55 crore on TTM basis (Q2FY10) as against the loss of Rs 3.48 crore previous year (Q2FY09). Long term investors can buy above closing of 95 with a target of Rs 150," says Fairwealth Securities research report.


Karvy Stock Broking on Bajaj Hindusthan - Target Rs 252

Karvy Stock Broking has recommended outperformer rating on Bajaj Hindusthan with a target of Rs 252, in its research report.

"For full year ended on September 2009, Bajaj Hindusthan, BHL (Consolidated) reported revenue decline of 2.1% to Rs 20.25 bn mainly due to ~19% decline in sugar sales to 0.81 mn mt during the year. The average realization improved by ~22% to Rs 21 per kg in FY09. The company reported loss of Rs 82.2 mn in FY09 as compared to loss of Rs 301 mn in FY08."
"For FY10 estimates, we have revised cane cost upward by 15.6% to Rs 2,142 per mt considering increase in sugar prices and shortage of sugar cane. We have maintained our sugar sales volume estimates to 1.24 mn mt. We have changed our average sugar realization estimates upward by 6.5% to Rs 31.4 per Kg. We have revised revenue estimates by 4.5% to Rs 42.74 bn and expect the company to report profit of Rs 3.47 bn (previous Rs 3.69 bn) in FY10. The book value has been revised from Rs 264 to Rs 288 per share considering issue of 35.4 mn shares at premium of Rs 203 in July 2009. We maintain our valuation based on average of 2xBV and 11xFY10 earnings. We have revised valuation from Rs 246 to Rs 252 per share and maintain Outperformer rating," says Karvy Stock Broking research report.

Sushil Finance on Repro India - Target Rs 146

Sushil Finance is bullish on Repro India and has recommended buy rating on the stock with a target of Rs 146, in its research report.

“Repro India is an integrated print service solution provider. It prints Educational Books, Children’s Books, Catalogues & Magazines and Annual Reports. The company’s print services ranges from creative & designing, sourcing & procurement, printing & production, warehousing, assembly & dispatch to customer promotions. Repro has already built up overseas presence & Exports about 55% of its revenues. They have relationship based businesses with large publishers in UK, USA and Africa.”

“Given its strong positioning in the value added print segment, effective marketing network, efficient operations, consistently improving performance & ensuing growth from the expansion over the next 2-3 years, we expect Repro to post an APAT growth of 19% in FY10 & 25% in FY11. At the CMP, the stock trades at an attractive valuation of 4x its FY11E earnings & P/BV of 0.7x FY11E,” says Sushil Finance research report.

Stock Views on Lupin, Max India, Royal Orchid

Karvy Stock Broking on Lupin - Target Rs 1760

Karvy Stock Broking has recommended outperformer rating on Lupin with a target of Rs 1760, in its research report.

“Lupin's branded play began with the launch of Suprax in the US market in February 2004. Since then the company has been able to make Suprax a US$74 mn brand and has been able to expand its franchise with the paedriatic doctors in the US. Over the years the company has been able to build a strong brand franchise for Suprax. Lupin has expanded the lifecycle of the product by creating line extensions. The Suprax basket comprises 100mg, 200 mg suspension and 400 mg tablets. Lupin is now expanding further into the high value Cardiovascular (CVS) and respiratory products market in the US.”

“The stock is currently quoting at 22x FY 2010E and 15.9x FY 2011E. As a result of the upgrade in EPS we upgrade our multiple from 17.4x to 19x FY 2011 and revise our price target upwards by 12.2 % to Rs 1,760 and continue to rate the stock as Outperformer.”

Sharekhan on Max India - target Rs 295:

Sharekhan is bullish on Max India and has recommended buy rating on the stock with a target of Rs 295, in its research report.

“Max India plans to raise around Rs 725 crore collectively through a Rs550 crore fully and compulsorily convertible debentures (FCD) issue and another Rs173.4 crore by way of warrant issue to the promoter. The company has convened an extra-ordinary general meeting on January 22, 2010 to obtain shareholders' approval for the FCD and warrant.”

“We have factored in the above-mentioned capital raising plan into our estimates based on the deployment plan disclosed by the management. We expect the capital infusion in the insurance business to allow optimum utilisation of the aggressively expanded branch network, while in the case of healthcare business the capital infusion gives us comfort in Max India’s ability to reach the target of 1,800 beds by FY2011. We maintain our Buy recommendation and price target (Rs295) on the stock,” says Sharekhan research report.

Nirmal Bang on Royal Orchid - Target of Rs 108

Nirmal Bang is bullish Royal Orchid and has recommended buy rating on the stock with a target of Rs 108, in its research report.

"At current market price Royal Orchid is trading at EV/EBITDA of 12.0x and 8.0x of FY11E and FY12E EBITDA, respectively. We have valued the stock at 9.5x its FY12E EV/EBITDA (which is inline with its historical average and discount to its peer group). We expect ROHL’s EBITDA to grow at a CAGR of 17.35% over FY09-FY12E. We hereby initiate coverage on ROHL Ltd. and recommend buy rating with a target price of Rs 108 (32% upside) in 15 months."

Stock views on Jet Airways, Unity Infra, Hindustan Construction Company

IndiaInfoline on Jet Airways - Target Rs 575-580

IndiaInfoline is bullish on Jet Airways and has recommended buy rating on the stock with a target of Rs 575-580, in its research report.

"On the daily chart, Jet Airways has formed a bullish price channel. It is a continuation pattern that slopes up and is bound by an upper and lower trend line. On Tuesday, the momentum indicator RSI depicted a positive divergence. In addition the stock is trading above its key short-term moving averages. We recommend a buy at current levels and on declines up to Rs 555 with a stop loss of Rs 551 for a target of Rs 575, 580," says IndiaInfoline research report.

Karvy Stock Broking on HCC - Target Rs 171

Karvy Stock Broking is bullish on Hindustan Construction Company, HCC and has recommended buy rating on the stock with a target of Rs 171, in its research report.

“Hindustan Construction Company (HCC) one of the largest and oldest companies engaged in construction business is in a sweet spot with core construction business on a growth trajectory driven by improving visibility for new order inflow and 135% higher infrastructure investments in 11th five year plan. We expect order book would grow at CAGR of 19% over the next two years to Rs 233 billion, primarily from sectors like hydro power and irrigation."

"Consequently, HCC's revenue would grow at CAGR of 26% over FY10-11 and able to sustain margin at higher level. In addition to that, value unlocking from its foray into real estate primarily Lavasa Corporation would add significant value to HCC's shareholders. We initiate coverage with a BUY rating and price target of Rs 171 based on our SOTP (Sum of the Parts) valuation,” says Karvy Stock Broking research report.


Nirmal Bang on Unity Infra - Target Rs 669


Nirmal Bang is bullish on Unity Infraprojects and has recommended buy rating on the stock with a target of Rs 669, in its research report.

"Unity Infraprojects has raised Rs 73.3 crore through a QIP issue. The QIP was issued at Rs 506 per share resulting in a post issue dilution of 10.7%. The promoter shareholding in the company now stands at 62.7% down from 69.5%. The company has issued 14,49,476 shares at a premium of Rs 496 per share. The equity share capital for the company now stands at Rs 14.8 crore. We have revised the target price of UIL to Rs 669 per share down from Rs 726 primarily to factor in the equity dilution. At the current market price of Rs 508 per share the stock looks quiet attractive. We maintain a ‘BUY’ recommendation with a long term view," says Nirmal Bang research report.

Stock views on Opto Circuits, GMR Infrastructure, Network 18

Karvy Stock Broking on Opto Circuits - Target Rs 244

Karvy Stock Broking has recommended a buy rating on Opto Circuits India with a target price of Rs 244 in its research report.

"We have increased our target price from Rs 243 on 16x FY10E estimated earnings to Rs 244 on 13x FY11E estimated earnings. The stock is currently trading at a P/E of 12.3x FY10E diluted EPS of Rs 15.4 and 10x FY11E diluted EPS of Rs 18.8. We maintain our recommendation on the stock as a BUY," says Karvy's research report.

Hem Securities on GMR Infra - Target Rs 214

Hem Securities has maintained its buy rating on GMR Infrastructure with a target price of Rs 214 in its research report.


"The company has performed very well although constrain on the margin, which we expect to be on track in the near future. The future growth is expected to come from power and airports. Lower naphtha prices and higher gas availability is further likely to benefit the company. The biggest growth driver is going to be the airport business. The company’s efforts to add new airlines, increase the user development fee and other aero charges will increase revenue. The roads projects help the company to improve their margins, as the margin from roads projects is highest. We are very positive on the long term business prospects of the company and financial performance. We reiterate “BUY” on the stock with target price of Rs 214.00 with a medium to long term investment horizon," says Hem Securities' research report.


Sharekhan on Network 18 - Target Rs 143

Sharekhan has maintained its buy rating on Network 18 Media & Investments with a target of Rs 143 in its research report.

"For the Network18 group FY2009 was a year of severe pressure in terms of both operations and fund availability. In our opinion, things are unlikely to get any worse. With the advertising market showing nascent signs of recovery on the back of considerable easing of the growth concerns among corporate India, Network18’s properties are likely to bounce back. Thus, with Network 18 sufficiently funded to take care of the gestation period of its ventures and the funding requirements of its businesses (especially for Viacom 18), being the holding company of the group it would create significant value for equity holders in the longer term. We maintain our 'Buy' recommendation on the stock with a sum-of-the-parts price target of Rs 143," says Sharekhan's research report.

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 Views on BHEL, Yes Bank, Balrampur Chini

Karvy Stock Broking on BHEL - Target Rs 2653

Karvy Stock Broking has recommended an outperformer rating on Bharat Heavy Electricals (BHEL), with price target of Rs 2653, in its report.

"Bharat Heavy Electricals (BHEL) is a leading power equipment manufacturer in India and a play on India's increasing power generation requirement. The capacity addition of 10,000 MW (100% of existing) by FY12 is expected to improve execution capability and drive the revenue at a CAGR of 22.3%. The net profits are expected to boost up from 540 bps margin improvement mainly on account of cost control and are expected to increase at a CAGR of 30% to Rs 68.99 bn by FY12. We believe BHEL will be outperformer considering strong revenue visibility and earnings growth along with attractive return ratios (28% for FY10-FY12). We initiate our coverage with target price of Rs 2,653 over 12 month period," says Karvy Stock Broking's report.


Hem Securities on Yes Bank - Target Rs 244

Hem Securities has recommended a buy rating on Yes Bank with a price target of Rs 244 in its report.

"Yes bank has registered a compounded growth rate of around 60% since it interception. We expect the bank to continue to grow at a high rate. We are very positive on the long term business prospects of the company and financial performance. At Current Market Price of Rs 165.05 the stock is trading at a PE of 16.15x. With expected EPS for FY10 and FY11 of Rs 17.73 and Rs 19.32 respectively, the stock is trading at a PE of 9.7x and 8.9x respectively. The price of the stock is undervalued at current level of Rs 165.05. We reiterate “BUY” on the stock with target price of Rs 244 with a medium term investment horizon. The Upside for the stock is Rs 79," says Hem Securities' report.

SKP Securities on Balrampur Chini - Target Rs 157

SKP Securities has recommended a buy rating on Balrampur Chini Mills, with price target of Rs 157, in its report.

"With the festive season round the corner, the demand for sugar is expected to go up. As the consumption is about to outweigh demand, the domestic sugar prices have already touched a 30 year high, and is projected to move up even further. BCML is well poised to substantially gain from the price rise, on account of lower contracted import cost, improved margins and better realizations. We recommend a 'BUY' on the stock with a 12 month target price of Rs 157 at 10x FY10E earnings, giving it an upside potential of 39%," says SKP Securities' report.

Stock Views on Allahabad Bank, Unitech, Torrent Power

Karvy on Torrent Power - Target Rs 270

Karvy Stock Broking has recommended a buy rating on Torrent Power with a target price of Rs 270 in its research report.

"Revenues for the quarter were up by 23.2 % to Rs 4810 million. Domestic formulations continue to outperform the industry with growth rate of 15.4 % for the quarter to Rs 1987 million. We increase our operating margins estimates from 17.6 % and 17.9 % on account of better gross margins and lower overheads in majority of the markets to 19.1 % and 19.2 % respectively for FY 10E and FY 11E respectively. We increase our EPS estimates for FY 2010 by 12.4 % to Rs 28.8 and by 13.6 % to Rs 33.3 for FY 2011E. On account of upgrade in EPS we upgrade our price target by 15 % to Rs 270 based on 8.1x FY 2011E. We continue to rate the stock as 'BUY'," says Karvy's research report.

IIFL on Unitech - Target Rs 102

IIFL has maintained its add rating on Unitech with a price target of Rs 102 in its report.

"Unitech reported revenue growth of 33.5% QoQ in 1QFY10, ahead of our estimate. PAT came in at Rs1.6 billion, after operating losses in 4QFY09. Unitech has sold 6.9m sq ft since March for a total consideration of Rs27 billion. Even more creditable is the mix of its sales—Rs18 billion from residential (5,000 apartments) and Rs9bn from commercial verticals. It has cut debt by Rs 20 billion from the proceeds of the two QIPs, asset sales and promoter warrants. It has tripled the execution staff in its pre-sold projects to accelerate deliveries. It is also rolling back prices for existing buyers in Grande in Noida and Nirvana Floors in Gurgaon; this, we believe, will boost customer goodwill. We have upgraded revenue and PAT estimates for FY10 by 13% and 12% respectively, to account for better-than-anticipated ramp-up in execution. We maintain ADD with a target price of Rs102/share, at 5% discount to 1-year forward NAV," says IIFL's report.


Bonanza on Allahabad Bank - Target of Rs 116

Bonanza has recommended a buy rating on Allahabad Bank with a price target of Rs 116 in its report.

"Allahabad Bank has shown good results in Q1 FY10. Bank’s total interest income has increased by 18%, whereas Interest Costs have gone up by 11.6%. Bank’s Gross NPA has marginally increased from Rs 1078 crore in Q4 FY09 to Rs 1093 crore in Q1 FY10. Net NPA are down from Rs 419 crore in Q4 FY09 to Rs 220 crore, as bank has recovered NPAs. Its GNPA are at 1.79% in Q1 FY10 down from 2% in Q1 FY09 and Net NPA are at 0.37% down from 0.8% in Q1FY09. The need for provisioning may go down in future. Allahabad Bank has given good results in Q1 FY10. We revise our earlier EPS estimates from Rs 23/Share to Rs 29/Share. At CMP Rs 86, it trades at 2.9 PE. Investors may 'BUY' at CMP, for a target of Rs 116 i.e. about conservative 4 PE on FY10 estimates, “ says Bonanza's research report.

Stock Views on Dr Reddys Laboratories, Micro Technologies, HDFC Bank

Karvy Stock Broking on Dr Reddys Lab - Target Rs 925

Karvy Stock Broking has maintained its buy rating on Dr Reddys Laboratories with a target of Rs 925 in its report.

"Dr Reddys revenues for the quarter are expected to be higher by 31% to Rs 19657 million. Revenues will continue to be powered by authorised generic Imitrex. The rest of the formulations space would show lacklustre growth while PSAI business would show double digit de-growth. Gross margins will be lower than preceding quarter on account of strengthening of the rupee. Operating margins for the quarter would be higher at 13.8 % as against 10.9 % in the corresponding quarter of the previous year. The company has set a target of USD 3 bn revenue turnover and a ROCE of 25 % by FY 13. The revenue growth would be organic growth in global generics segment driven primarily by US and aided also by Europe, Russia and India. We maintain 'BUY' rating on the stock with a price target of Rs 925 based on 16x FY 2011E, “ says Karvy Stock Broking's research report

SKP Securities on Micro Tech - Target Rs 206

SKP Securities has recommended a buy rating on Micro Technologies with a target price of Rs 206 in its report.

"Micro Technologies (India) Ltd is a leading global developer, manufacturer and marketer of IT based security solutions for its clients across the globe. Product lines include the much-needed security devices, life style and support systems and web-based software. It has developed more than 200+ generic software products in security & life support systems. We believe, MTIL is the strongest player among Indian electronic/ software based security industry, led by its first mover advantage in security products/ solutions and absence of core competitor in the industry. At current market price of Rs 109/-, the stock is trading at a P/E of 1.06x of FY 11E earnings of Rs 102.82. We hereby initiate coverage on MTIL Ltd. and recommend buy rating with a target price of Rs 206/- (89% upside) in 18 months," says SKP Securities' report.

Sharekhan on HDFC Bank - Target Rs 1654

Sharekhan has maintained its hold rating on Axis Bank with a target price of Rs 834 in its report.

"In Q1FY2010, Axis Bank clocked a net profit of Rs 562 crore, up by a whopping 70.2% year on year (yoy), well ahead of our as well as street estimates. The surge in the net profit was mainly driven by strong treasury gains coupled with higher than-expected top line growth during the quarter. The net interest income (NII) grew by 29% yoy and came in at Rs 1,045.6 crore. The operating expenses grew by 30.8% yoy and 11.9% quarter on quarter (qoq) to Rs 827.8 crore on account of a sharp 44.8% y-o-y and 20.1% quarter-on-quarter (q-o-q) increase in staff expenses. At the current market price of Rs 756, the stock trades at 9.6x FY2011E EPS, 4.8x FY2011E PPP and 2.3x FY2011E adjusted BV. In view of limited upside in the stock price from the current levels, we maintain our Hold recommendation and price target of Rs 834, " says Sharekhan's report.

Stock Views on Lupin, Godawari Power & Ispat, Crompton Greaves

Emkay Global on Lupin- Target Rs 980

Emkay Global Financial Services has maintained its buy rating on Lupin, with price target of Rs 980, in its report dated.

"Since this is a sub-judice matter, it is difficult to take a call which way the judgment goes? However, by the spirit of the matter taken up by the EU authorities and chronology of events leading to out of court settlement raises an iota of doubt about the intention of settlement between innovator (Servier) and Lupin. At the moment, we can not estimate the exact loss; therefore impact on financials can not be assessed. In worst case scenario, this event will lead to one time charges, which could be as high as Rs 3.7 billion (10% of FY09 revenue). Hence, we continue to maintain our Buy rating with a target of Rs 980," says Emkay Global Financial Services' research report.

Karvy Stock Broking on Godawari Power & Ispat - Target Rs 128

Karvy Stock Broking has recommended a buy rating on Godawari Power & Ispat, with price target of Rs 128, in its report.

"The stock is trading at 0.6x its FY09 & 0.55x its FY10 BV. We revise FY10 earning estimates by 6% on account of change in MAT rate. However, we retain our valuation of 0.8x FY10 BV and target price of Rs 128/share. However, due to recent correction in stock price, we revise our rating from out performer to 'BUY'," says Karvy Stock Broking's report.

Sharekhan on Crompton Greaves - Target Rs 308

Sharekhan has recommended a buy rating on Crompton Greaves, with price target of Rs 308, in its report.

"We like Crompton Greaves for its consistent performance at the operating level. Moreover, its ability to improve its working capital management in a tough environment (most other companies have indicated a stretched working capital cycle) is quite impressive. We reiterate our bullish stance on the company and maintain our Buy recommendation on the stock. At the current market price the stock is discounting its FY2010 and FY2011 earnings estimates by 16.3x and 14.8x respectively, target of Rs 308," says Sharekhan's research 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 Axis Bank, Pantaloon Retail, Divis Laboratories

Angel Broking on Axis Bank - Target Rs 1024

Angel Broking has maintained its buy rating on Axis Bank with a target of Rs 1024 in its report.

"At the CMP, the stock is trading at 10.2x FY2011E EPS of Rs 73.9 and 2.0x FY2011E Adjusted Book Value (ABV) of Rs 379.1. Overall, given the reasonable mid-cycle valuations, we believe a medium-term investment perspective needs to be adopted to take advantage of the imminent upturn in GDP growth. From this perspective, we retain our preference for Private Banks such as Axis Bank, in light of their stronger core competitiveness. We believe the Bank deserves premium valuations on account of its attractive CASA franchise, multiple sources of sustainable fee income, strong growth outlook and A-list management. We maintain a Buy on the stock, with a Target Price of Rs 1,024, implying an upside of 35% from current levels," says Angel Broking's research report.

Angel Broking on Pantaloon Retail - Target Rs 301

Angel Broking has recommended a buy rating on Pantaloon Retail with a target of Rs 301 in its report.

"We believe that that future growth of the organised Retailing Sector in India would be led by Value Retailing, cascading effects of which would be witnessed in the Lifestyle and Home Retailing Segments as well albeit with a lag effect. PRIL continues to be our Top-pick in the Indian Retail Sector on account of being the largest Retail player in India and having presence across most product categories and price points. We are positive on PRIL as it has been able to sustain decent growth on a Standalone YTD basis despite the apathetic economic scenario."

"At Rs 270, the stock is trading at 17.3x FY2011E Earnings and 3x FY2011E P/BV. We have valued PRIL Standalone at Rs240. We have valued PRIL's stake in FCH, HSRIL and Future Bazaar at Rs31, Rs12 and Rs18, respectively. We recommend a Buy on PRIL with a target price of Rs 301," says Angel Broking's research report.

Karvy Stock Broking on Divis Laboratories - Target Rs 1260

Karvy Stock Broking has maintained its buy rating on Divis Laboratories with a target of Rs 1260 in its report.

"Revenues for the quarter have gone up by 9.4% to Rs 2.9 billion for the quarter. This is in line with lower traction in revenues on account of slow down in growth in CRAMS business. We believe the second half would be better than the first half. Operating margins of the company would be 42 % compared to 41.5 % in the corresponding quarter of the previous year. Profits for the quarter would be up by 7 % to Rs 1010 million. Divi's Labs will be a major beneficiary of the pharmaceutical outsourcing and will see greater traction in H2 FY 2010 and FY 2011. The company had provided lower tax on account of SEZ in FY 2008 and FY 2009 to the tune of Rs 400 million. This has been on account of the amendment being valid from FY 2010 as against retrospective effect. The company will now have to provide the same in the current year. We downgrade our multiple from 15.5x to 14x on account of higher tax outgo and impact on cash flows on account of MAT. We reduce our price target by 10 % to Rs 1260 based on 14x FY 2011E. We however maintain our 'BUY' rating on the stock, “ says Karvy Stock Broking'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 Gujarat Industries Power Co, Opto Circuits, Sesa Goa

IIFL on GIPCL - Target Rs 130

IIFL has maintained its buy rating on Gujarat Industries Power Co. (GIPCL), with 12-month price target of Rs 130, in its report.

"GIPCL’s proposed 250MW expansion has been delayed, and now the management expects to commission unit-1 in 3QFY10ii as against 1QFY10ii, which is reflected in our forecasts. At CMP, GIPCL is trading at 0.9x FY10ii BV and 10x FY10ii P/E. We maintain 'BUY', with 12-month price target of Rs 130," says IIFL's research report.


Karvy Stock Broking on Opto Circuits - Target Rs 243

Karvy Stock Broking has maintained its buy rating on Opto Circuits, with price target of Rs 243, in its report.


"We maintain our consolidated net sales and net profit estimates for FY10 of Rs 11,140 million and Rs 2,492 million respectively. Although, the company has reported EBITDA margin expansion of 235 basis points in FY09 to 31.7% over previous year, but we maintain our EBITDA margin estimates for FY10 at 28.5%. This will be on account of increase in raw material and administration & marketing cost. The stock is currently trading at a P/E of 12.5x on FY09E EPS of Rs 12.8, and 10.5x on FY10E EPS of Rs 15.2. We maintain our 'BUY' rating on the stock with price target of Rs 243 on 16x FY10E estimated earnings," says Karvy Stock Broking's report.


Reliance Money Sesa Goa - Target Rs 263

Reliance Money has recommended a buy rating on Sesa Goa, with price target of Rs 263, in its report.

"At CMP, the scrip is quoting at an EV/EBIDTA of 1.2x FY11E earnings (Revised Estimate). Considering the rightful canalizing of the cash available yielding better return over what it used to earlier and the improved pricing power due to enhanced volume at disposal, we would like to attribute a better multiple than we had put in our earlier estimates. We recommend a Buy with a price target of Rs 263 at which the scrip will quote at an EV/EBIDTA of 2x," says Reliance Money's report.

Stock views on ICICI Bank, Pantaloon Retail, Axis Bank

Karvy Stock Broking on Axis Bank - Target of Rs 829

Karvy Stock Broking has maintained its buy rating on Axis Bank with a target price of Rs 829 in its research report.

"We have revised our Axis Bank earning estimates after a visit to the bank's senior management; we expect that the bank's credit growth would moderate to 31.5% (Y/Y) to Rs 1,146 billion from our earlier credit book estimate of Rs 1,226 billion in FY10. Net interest margin is estimated to shrink by 30 bps to 2.57% in FY10.The bank's core fee income growth momentum is expected to come down to 28% (Y/Y) in FY10 from 70% in FY08 and 50% in 9MFY09. The bank's management did not provide with any guidance or estimates on non-performing assets front; we expect 152% (Y/Y) rise in gross NPA in FY10 to Rs 21.5 billion and increased credit cost to 1.3% in FY10 from 0.71% in FY08 and 1.1% 9MFY09."

"We increase our earning estimates for FY09 by 5.0% to Rs 17.7 billion and reduce for FY10 by 9.6% to Rs 15.5 billion and reduce our target price by 29% to Rs 629 per share.We estimate the bank to record RoAE of 18.8% and 14.4% in FY09 and FY10 respectively. We re-iterate our BUY rating on the stock with a target price of Rs 629 at 2.2x adjusted book value FY10," says Karvy Stock Broking's research report.


Angel Broking on Pantaloon Retail - Target of Rs 439


Angel Broking has maintained its buy rating on Pantaloon Retail with a target price of Rs 439 in its research report.


"We are bullish on the long-term growth prospects of the Retail Sector despite the ongoing slowdown in the economy. Our Top Pick PRIL is the largest player in the Indian Retail Sector. We are positive on PRIL as it has been able to maintain its growth (YTD) at a healthy 31% on a Standalone basis and 34% on a consolidated basis despite the slowdown. We believe that PRIL Standalone would be able to meet our FY2009 and FY2010 Net Sales estimates of Rs 6,894 crore and Rs 8,492 crore, respectively. We estimate PRIL Standalone to clock Net Profit of Rs 154.6 crore and Rs 217.8 crore in FY2009 and FY2010, respectively.


On the bourses, the PRIL stock has witnessed significant correction in the past few months and is currently trading at attractive valuations and provides favourable risk-reward for the investors. We have valued PRIL's stake in FCH, HSRIL and Future Bazaar at Rs 33, Rs 13 and Rs 20, respectively. We maintain a Buy on the stock, with SOTP target price of Rs 439, translating into an upside of 73% from current levels," says Angel Broking's research report.


Sharekhan on ICICI Bank - Target of Rs 805

Sharekhan has maintained its buy rating on ICICI Bank with a price target of Rs 805 in its research report.

"As part of its strategy of focusing on capital preservation and improving asset quality, the bank does not intend to grow its balance sheet aggressively in the coming fiscal. It expects a balance sheet growth in mid single digits for FY2010, with the loan mix likely to shift further away from the retail segment."

"In view of the management, the pressure on the margins is likely to persist till H1FY2010 as the loan mix shifts away from the high yielding retail segment and a larger chunk of the wholesale deposits gets re-priced during the September-December 2009 period, paving the way for some margin expansion during H2FY2010."

"Despite the various concerns over the bank’s asset quality, its international business and the lack of triggers in the near term, we believe that the current valuations of the stock more than reflect the potential risks to the earnings. We maintain our Buy recommendation on the stock with a price target of Rs 805," says Sharekhan's research report.

Stock views on Bajaj Auto, JSW Steel, Marico

IIFL on Bajaj Auto - Target of Rs 670

IIFL has recommended a buy rating on Bajaj Auto with a target price of Rs 670 in its research report.

"After two years of declining volumes, Bajaj Auto is poised for profitable growth, on the back of a series of model launches in the high-margin 125cc+ segment. We believe strong margin expansion aided by volume growth in this class of bikes will drive a re-rating in the stock. The stock is trading at a PE of 9x on FY10ii—a 30% discount to Hero Honda, which is trading at 12.8x. We value the stock at 11x FY10ii and rate it a BUY with a target price of Rs 670," says IIFL's research report.

Karvy on JSW Steel - Target of Rs 834

Karvy Stock Broking has maintained its buy rating on JSW Steel with target price of Rs 834 in its research report.

"JSW Steel, India's third-biggest producer, is on target to achieve robust sales volume growth during Q4FY2009. It is likely to sell 1.2 million tonnes of steel as against 0.7 million tonnes during Q3FY2009. However, it is to be noted that the YoY sales volume is likely to be flat."
"We believe that the sales volume growth could help the company in posting EBIDTA growth on QoQ in absolute terms, but the EBIDTA margin of 15% is expected to be under pressure due to the lower price realization. In our opinion, the current rally in JSW Steel and other steel stocks is driven by the strong sales volume growth during Q4FY2009. We maintain our BUY rating on the stock with target price of Rs 834," says Karvy Stock Broking's research report.

IIFL on Marico - Target of Rs 80

IIFL has recommended a buy rating on Marico with a target price of Rs 80 in its research report.

"The recent hike in minimum support price (MSP) for copra by the government has given rise to concerns on Marico’s margin outlook for FY10. Historical evidence leads us to believe that the MSP hike will not alter copra price dynamics. NAFED (National Agriculture Marketing Federation), the nodal procurement agency for copra, has in the past not been as effective in supporting copra prices."

"Perishable nature of copra as well as the dearth of funds has compounded the problem of NAFED being not an end-user itself (unlike FCI), necessitating liquidation of copra inventory in the market within four months of procurement. Importantly, copra demand, over 50% of which comes from edible coconut oil, has fallen this year as consumers switch to cheaper options such as palm oil, creating downward pressure on copra prices. Copra prices are likely to rule 7-8% lower in FY10 (YoY) benefiting Marico, supporting a 110 bps gross margin expansion in FY10, in our estimate. BUY with a target price of Rs 80," says IIFL's research report.

Stock views on Bank Of Baroda, Bajaj Auto

Karvy Stock Broking on Bank Of Baroda - Target of Rs 295

Karvy Stock Broking has maintained its buy rating on Bank Of Baroda with a price target to Rs 295 in its research report.

"We are revising our FY2009 restructured standard assets from Rs 3.8 billion to Rs 30 billion as we believe that BOB's corporate loan portfolio has deteriorated and many of the bank's corporate customers have requested for restructuring their standard loans. As a result our ABV for FY2009 has been revised downwards to Rs 257 from our earlier estimate of Rs 302 and our FY2010 ABV has been revised to Rs 321 from Rs 368. We are downgrading our price target to Rs 295 from Rs 335 to factor the deteriorating economic environment. We continue to maintain our Buy recommendation," says Karvy Stock Broking's research report.

Sharekhan on Bajaj Auto - Target of Rs 640

Sharekhan has maintained its buy rating on Bajaj Auto with a price target of Rs 640 in its research report.

"We believe that due to the tough environment it will not be very easy for BAL to regain its market share despite the new launches. However, with stronger exports, we expect the company to record a sales growth of 9% in FY2010. Though in future the sales performance will be much dependent on the success of its new launches, the company should be able to clock a moderate sales growth from the next quarter onwards. The short-term outlook continues to be weak, with the present BAL brands not performing as well as expected and the company losing out market share to Hero Honda and the other players."

"Overall, the BAL stock may underperform in the short term on account of the uncertainties and concerns discussed in this note. We believe that the valuation gap with Hero Honda is likely to narrow down as things improve from Q1FY2010 onwards. We maintain our Buy recommendation on BAL with a price target of Rs 640," says Sharekhan's research report.

PINC on Bajaj Auto - Target of Rs 669

PINC Research has recommended a buy rating on Bajaj Auto with a target price of Rs 669 in its research report.

"Over the last two years, Bajaj Auto has disappointed the market with declining volumes. However despite lower volumes, we see profitability of the company to improve from the current levels. We upgrade our recommendation on the stock to ‘BUY’ with a target price of Rs 669 discounting FY10E earnings 10x," says PINC's research report.

Stock views on Crompton Greaves, Indian Overseas Bank, Patel Engineering

IIFL on Crompton Greaves - Target of Rs 151

IIFL has recommended an add rating on Crompton Greaves with a target price Rs 151 in its research report.

"We met Crompton’s management post the announcement of share buyback and investment in group company Avantha Power & Infrastructure Ltd (APIL). The management views these initiatives as the best use of cash on the parent balance sheet, as the company has slowed down its own capex plans. These two initiatives would result in cash outflow of Rs 4.51 billion during FY10."

"Deleveraging the subsidiary balance sheets or cash conservation in a downturn would have been a more prudent strategy, in our view. However, the management was sanguine on the outlook of both domestic and overseas power T&D businesses and expressed confidence on the cash generation ability of existing businesses. In our view, more clarity on APIL’s financial details and development plans would be required to improve investor sentiment on the related party transaction. "ADD" target price of Rs 151," says IIFL's research report.

Sunidhi Securities on IOB - Target of Rs 60

Sunidhi Securities & Finance has recommended a buy rating on Indian Overseas Bank with a price target of Rs 60 in its research report.

"Indian Overseas Banks' total business as on December 31, 2008 rose from Rs 1,33,413 crore as at end December 2007 to Rs 1, 62, 575 crore-a growth of 22%. Total deposits grew by 15% to Rs 90, 866 crore from Rs 78, 791 crore. Advances spurted 31% in Q3FY09 to Rs 71, 709 crore from Rs 54, 6222 crore (YoY). As at December 31, 2008 IOB’s CASA (current accounts saving accounts) is marginally down to 29.23% from 30.93% (YoY)."

"During Q3FY09, total income rose 40% to Rs 3204 crore and net profit by 26% to Rs 388 crore. NIM and NP margin stood at 3.14% % and 12.4% respectively. Its balance sheet grew by 31% to Rs 19, 747 crore (YoY). We recommend BUY with a target of Rs 60 in the medium term," says Sunidhi Securities & Finance's research report.

Karvy on Patel Engineering - Target of Rs 305

Karvy Stock Broking has maintained its buy rating on Patel Engineering Company with a price target of Rs 305 in its research report.

"Patel Engineering has bagged an order worth of Rs 7.99 billion from the Narmada Valley Development Authority for Bargi Diversion Project in joint venture with SEW Construction Ltd. The company's stake in the project would be around 60% which will translate the order inflow of Rs 5 billion. The project would be executed in three years and provide the EBIDTA margin of around 15%. We have excluded the real estate value from our valuation due to no clarity on development plans and revise the price target downward. We have valued the core business of the company using EV/EBITDA methodology by providing 20% discount to its historical trough multiple of 5.5x. We re-iterate our BUY rating with downgraded price target of Rs 305," says Karvy Stock Broking's research 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.