Stock Views on Bajaj Auto, Power Grid, Welspun Gujarat

Bonanza on Welspun Gujarat - Target Rs 240


Bonanza has recommneded a buy rating on Welspun Gujarat with target price of Rs 240 in its research report.

"The quarter started with the order book of approximately Rs 7500 crore and added Rs 1200 crore. The company gets orders from both domestic and overseas buyer. The company’s five year CAGR of consolidated revenue is 53.3% and profit is 58.3%. The company’s operating margin will extensively go up in FY 10 due to fall in price of raw materials as well as selling price. The company is trading at the one year Forward PE of 7.4X. The new investors can 'BUY' at CMP of Rs 201 with the target of Rs 240, " says Bonanza's report.

Hem Securities on Power Grid - Target Rs 144

Hem Securities has initiated a buy rating on Power Grid Corporation of India with a target price of Rs 144 in its research report.

"The company posted financial figures for the quarter ended March 2009 more than expectations. The net sales for the company gone up by 44.30% to Rs 22498.90 million for the Q4FY09 as against the net sales of Rs 15591.80 million for the Q4FY08. The stock at the current market price of Rs 110.10 will trade 27.38 times to its earnings of Rs 4.02 and 3.16 times to its book value of Rs 34.74 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 144 in the medium term investment horizon (5- 6 months) with an appreciation of about 30%," says Hem's research report.


Hem Securities on Bajaj Auto - Target Rs 1430

Hem Securities has initiated a buy rating on Bajaj Auto with a price target of Rs 1430 in its report.

"Bajaj Auto limited is one of the largest two wheeler manufacturing company in India. The company posted excellent financial figures for the quarter ended June 2009. The net sales for the company remain flat at Rs 23384.70 million for the Q1FY10 as against the net sales of Rs 23107.60 million for the Q1FY09. The company posted the operating profits of Rs 4314.00 million for the Q1FY10 as against the operating profits of Rs 2667.80 million for the Q1FY09 with the growth rate of 61.71%. The company plans six new launches in 2009 and on back of these launches the company is planning to almost double its sales in India by the second half of 2009-10. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 1430 in the medium term investment horizon (4- 5 months) with an appreciation of about 24%,“ says Hem Securities' report.

Stock Views on IDBI Bank, Power Grid Corporation, Sintex Industries

Angel Broking on Sintex Industries - Target Rs 248

Angel Broking has maintained its buy rating on Sintex Industries with a target price of Rs 248 in its research report.

"Sintex Industries’ (Sintex) consolidated Net Sales de-grew by 9.1% to Rs 662.4 crore (Rs 728.6 crore) in 1QFY2010. Sintex’s 1QFY2010 consolidated Operating profits stood at Rs 87.4 crore. The OPM for the quarter stood at 13.2%, increasing by 50bp on a yoy basis.Going ahead, we expect the company’s business to be primarily driven by its building construction division. We like Sintex on account of its high revenue visibility in the monolithic and prefab business, where it has an order book position of around Rs 1,600 crore,

with another Rs 190 crore of fresh orders from Rural housing in the pipeline. Despite the slowdown in the auto industry, the company’s custom molding segment is expected to deliver a strong performance in the future, due to robust demand from the electrical segment."

Hem Securities on Power Grid - Target Rs 144

Hem Securities has recommended a buy rating on Power Grid Corporation, with price target of Rs 144, in its report.

"The stock at the current market price of Rs 111.05 will trade 27.65 times to its earnings of Rs 4.02 and 3.20 times to its book value of Rs 34.74 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 144 in the medium term investment horizon (5- 6 months) with an appreciation of about 30%," says Hem Securities' report.

Sharekhan on IDBI Bank - Target Rs 169

"In Q1FY2010, IDBI Bank recorded an impressive growth in its core operating profit (up 275% year on year [yoy]) on the back of marked improvement in various operating parameters (viz. year-on-year [y-o-y] improvement in margins, lower cost to income, strong core fee income growth, healthy advances growth). However, the same could not trickle down to the bottom line on account of multi-fold increase in provisioning expenses (bulk of which relates to Dabhol Power Plant) during the quarter. Consequently, the net profit growth was contained at 7.6% yoy (well below our expectation)."

"At the current market price of Rs 100, IDBI Bank trades at 5.4x FY2011E earnings per share, 2.6x 2011E pre-provisioning profit and 1.0x FY2011E price-adjusted book value. We maintain our Buy recommendation on the stock and shall return soon with a detailed analysis of the bank's Q1FY2010 performance after discussion with the management on the same, target price Rs 169, “ says Sharekhan's research report.

Stock views on KEC International, Wipro, Infosys

Angel Broking on KEC International - Target Rs 477

Angel Broking has recommended a buy rating on KEC International with a price target of Rs 477 in its research report.

"KEC International (KEC) is a global player in the Power Transmission and Distribution (T&D) network. KEC, which recently enjoyed a good inflow of domestic orders primarily from Power Grid Corporation (PGCIL), is well poised to bag more orders from the domestic markets. Further, KEC derives close to 63% of its revenue from its overseas operations and is expected to clock good growth in this space as well. Thus, KEC is set on a high growth path on the back of healthy order book position, stable Margins (registered in spite of a volatile commodity and currency markets) and diversification into the Railways and Telecom Segments, where the government is set make substantial investments. At Rs 373, the stock is trading at 10.2x FY2010E and 7.8x FY2011E Earnings. We initiate coverage on the stock with a buy recommendation and target price of Rs 477,” says Angel Broking's research report.

PINC Research on Wipro - Target Rs 420

PINC Research has recommended a buy rating on Wipro, with price target of Rs 420, in its report.

"We upgrade our estimates on Wipro from HOLD to BUY recommendation with a target price of Rs 420, an upside of 11%. The stability in pricing in these challenging environment has helped the company to gain a competitive edge over its peers. They are also eyeing the emerging markets for the much needed volume growth. The management believes that the number of ramp downs in projects have seen a significant decline which are positive signs for posting a single digit growth in FY10," says PINC's research report.

PINC Research Infosys - Target Rs 1950

PINC Research has upgraded its rating on Infosys Technologies from sell to buy, with price target of Rs 1950, in its report.

"We upgrade our rating on Infosys from 'SELL' to 'BUY' with a target price of Rs 1,950, an upside of 12%. We believe that the worst is over for USA, which accounts for 60% of the revenues for the major Indian IT vendors. The signs of recovery will help Infosys to post muted single digit growth in terms of revenues. The management also believes that things are improving from their clients’ end which will provide them the much needed volume growth," says PINC's research report.