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 Sadbhav Engineering, Tata Tea, ITC

Angel Broking on Sadbhav Engineering - Target Rs 774

Angel Broking has recommended a buy rating on Sadbhav Engineering, with price target of Rs 774, in its report.

"We value Sadbhav Engineering on a SOTP basis to capture the long-term value creation from its BOT Segment. Considering a CAGR of 22.1% in the top-line over FY2009-11E (on the back of a strong Order Book), cooling commodity prices (leading to an improvement in the Margins), rolling over to FY2011 numbers and re-rating of the assigned P/E (10x in place of the 8x assigned earlier, on the back of an overall re-rating of the Sector), we are upgrading the stock to a 'Buy' from 'Neutral', with a SOTP target price of Rs 774, implying a potential upside of 19% from its current levels. Our SOTP target price is achieved by assigning a P/E multiple of 10x on its FY2011E Earnings of Rs 62.1 and by valuing its BOT Project of Rs 200 crore at Rs 153/share (at an implied P/BV of 1x)," says Angel Broking's report.

Sharekhan on Tata Tea - Target Rs 853

Sharekhan has recommended a buy rating on Tata Tea with a target price of Rs 853 in its research report.

"Tata Tea’s Q4FY2009 numbers (derived from FY2009 and M9FY2009 numbers) are below our expectations. The top line grew by 9.4% year on year (yoy) to Rs 1,226.1 crore in Q4FY2009, which is below our expectation of Rs 1,319.7 crore for the quarter. At the current market price the stock trades at 8.7x FY2010E earnings per share of Rs 64.0. We shall revisit our estimates for FY2010 and introduce FY2011 estimates after our interaction with the management. We maintain our 'Buy' recommendation on the stock, target of Rs 853," says Sharekhan's research report.

Nirmal Bang on ITC - Target Rs 250

Nirmal Bang has recommended a buy rating on ITC with a target price of Rs 250 in its research report.

"At the CMP , the stock is currently trading at a PE of 17.1x FY10E & 14.6x FY11E, which looks quite attractive when compared to the peers in the industry. The FMCG segment as a whole trades at an Average PE of around 24x earnings. ITC historically has traded in the PE range of 21x to 27x with an average PE of around 24x.We recommend a 'BUY' rating on the stock with a Price target of 250 per share (PE of 22x FY10E) an upside of 29% over a period of one year," says Nirmal Bang's 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.

Stock Views on Sintex India, Shiv Vani Oil, Petron Engineering Construction

Hem Securities on Sintex India - Target of Rs 314

Hem Securities is bullish on Sintex India and has recommended buy rating on the stock with a target of Rs 314, in its November 11, 2008 research report. “Sintex Industries’ consistent performance in both top line and bottom line, vig-orous growth in order book and it’s recent acquisitions show phenomenal growth in the company’s financials. Due to its ability to quickly deliver affordable housing projects, the company has secured a strong order book of Rs. 14 billion for monolithic construction which will be executed over 1-2 years. The company has got approval from 16 states for its prefab business which is the biggest entry barrier for any new entrant. So, the company is shifting its focus from textiles to plastic division to grab the growing opportunities and thereby continue on its growth trajectory. Therefore, the company’s revenue which is coming from 3-4 segments shall provide a hedge against cyclicality of its operations.”

“The stock at the current market price of Rs 218 will trade 11.24 times to its earnings of Rs 19.38 (TTM) and 1.97 times to its book value of Rs. 110.74 and is expected to provide huge upside potential in medium term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 314 in the medium term investment horizon with an appreciation of approximately 44%,” says Hem Securities' research report.

Nirmal Bang on Shiv Vani Oil - Target of Rs 544

Nirmal Bang has maintained its buy rating on Shiv Vani Oil & Gas Exploration Services with a revised target price of Rs 544.1 in its November 5, 2008 research report. "Shiv Vani Oil registered strong top line growth of 92.4% y-o-y to Rs 187.2 crore for 2Q 09. We reiterate our BUY rating on Shiv Vani Oil. However, we are revising the target price to Rs 544.1 based on our FY10 earnings to factor in the slowdown of the economy in general and sector in particular," says Nirmal Bang's research report.

Nirmal Bang on Petron Engineering Construction

Nirmal Bang has recommended a buy rating on Petron Engineering Construction in its November 5, 2008 research report. "The company reported a Net Sales of Rs 118.6 crore in Q2 FY 09 as against Rs 65.02 crore in Q2 FY 08 an increase of 82.4% on YoY basis and Rs 94.49 crore in Q1 FY 09 an increase of 25.5% QoQ basis. We expect the company to achieve Net Sales of Rs 456.38 crore and Rs 684.57 crore, EBIDTA of Rs 45.49 crore and Rs 69.68 crore, Adj. PAT of Rs 17.92 crore and Rs 27.57 crore for FY 09 and FY 10 respectively. At projected EPS of Rs 16.99 for FY 09 and Rs 26.01 FY 10 the stock is trading at Price Earning Multiple of 8.3x and 5.4x respectively. Buy," says Nirmal Bang's research report.

Stock Views on VST Tillers, Bartronics India

Sunidhi Securities on VST Tillers - Target of Rs 135
Sunidhi Securities & Finance has recommended a buy rating on VST Tillers Tractors with a target of Rs 135 in its November 21, 2008 research report. "During Q2FY09 OP & NP margins stood at 16.7 and 10% against 13.7 and 7.2% respectively. During H1FY09 OP margin has moved up from 13.1% to 14.6% and net margin surged from 7% to 8.3%. VSTTL expects to continue its progress in establishing a sizeable market share for power tillers in states such as West Bengal, Karnataka, Orissa and Andhra Pradesh during the coming years. This apart, the prospects of exporting power tillers appear to be bright."

"During FY09, sales are expected to go up by 40% to Rs 260 crore and net profit by 45 per cent to Rs 20.9 crore, which would yield an EPS of Rs 36. We recommend BUY with a target of Rs 135 in the medium term. The 52-Week high and the low of the share has been Rs 259/88," says Sunidhi Securities & Finance's research report.

Nirmal Bang on Bartronics India - Target of Rs 155.5

Nirmal Bang has maintained its buy rating on Bartronics India with a revised target price of Rs 155.5 in its November 6, 2008. "Sales witnessed strong growth of 136.9% y-o-y to Rs 160.7 crore in 2Q 09. At current levels the stock looks undervalued and holds strong potential for upside. We reiterate BUY rating on BIL. However, we are revising our target price to Rs 155.5 to factor in the slowdown of the economy in general and anticipated slowdown in the company’s US business," says Nirmal Bang's research report.

Stock Views on Balrampur Chini, Suzlon Energy, GE Shipping

HDFC Securities on Balrampur Chini - Target of Rs 126
HDFC Securities has maintained its buy rating on Balrampur Chini Mills with a target of Rs 126 in its October 8, 2008 research report. "We have valued the stock on 7x EV / EBIDTA for CY10E (9.6x CY09E), with a target price of Rs 126, an upside of 90% over the CMP. Our bull case target is Rs 188 (upside of 184%) and bear case target price is Rs 77 (upside of 16% from current levels). We have based our valuation on a) Uptrend in sugar cycle resulting in higher realisation for sugar and by products b) Lower interest and deprecation burden c) Strong EPS growth of Rs 4.7 to Rs 9.8 from CY08E to CY10E at a CAGR of 44%. We maintain our Buy rating and target price of Rs 126 on the stock," says HDFC Securities' research report.

Nirmal Bang on Suzlon Energy - Target of Rs 194

Nirmal Bang has assigned a buy rating on Suzlon Energy with a target of Rs 194 in its October 7, 2008 research report. "We expect Suzlon to report a CAGR of 38.5% during FY08 to FY12E in net sales on the back drop of strong order book position and significant expansion plans of the company. These coupled with unprecedented demand for wind energy will drive growth for the company going forward. We expect Suzlon to report net profit CAGR of 54.7% during FY08 to FY12E. We assign a buy rating on the stock with the target price of Rs.194.0 per share which is 12X FY10 Diluted EPS of Rs 16.16 implying an upside of 52.6% from current levels," says Nirmal Bang's research report.

PINC Research on GE Shipping - Target of Rs 407

PINC Research has recommended a buy rating on Great Eastern Shipping Company with a target of Rs 407 in its October 13, 2008 research report. "Recently, its wholly owned subsidiary Greatship (India) Ltd. (GIL) formed a joint venture with Norway based DOF Subsea (world’s leading subsea project player) to explore opportunities in deep sea projects off the east coast of India. We believe that its expansion will improve the quality of earnings by enhancing the presence of offshore segment to total earnings."

"Based on SOTP calculations, we have arrived at a fair value of Rs 582 per share in FY10. We have further discounted the fair value by 30% to reflect trough valuations. Hence, we initiate coverage with a ‘BUY’ recommendation with a price target of Rs 407 on an 18 month investment perspective," says PINC's research report.