Stock Views on Rolta India, KS Oils, Hindustan Construction Company

Prabhudas Lilladher on Rolta - Target of Rs 240

Prabhudas Lilladher has recommended accumulate rating on Rolta India with a target of Rs 240, in its research report.

“Rolta has strengthened its IP portfolio with Geospatial Fusion, OneView, iPerspective and SOA Today, that has de-linked its model away from the linear growth model. Also, JVs with Thales Group and The Shaw Group have helped them bid for government projects and provide world-class service to its clients. We believe that solution driven growth when compared to service driven growth led by nonlinear approach to revenue momentum, would help the company sustain its margin with revenue momentum.”



Prabhudas Lilladher on KS Oils - Target Rs 88


Prabhudas Lilladher is bullish on KS Oils and has recommended buy rating on the stock with a target of Rs 88, in its research report.

“KS Oils (KSO) is a market leader in the Rs130bn mustard oil market, with 11% market share (FY09). It also has ~30% market share in branded mustard oil segment (current market size of ~Rs39bn) which is expected to grow at ~25% CAGR, going forward. By FY11, the company is expanding its mustard oil crushing capacity by ~3x (of its FY09 capacity). We believe that the multi-product brand portfolio will push KSO to capture the growing branded mustard oil market. Further, KSO is expanding ~4x of its FY09 refined oil capacity by FY11. We believe that a strong market presence in mustard oil, strong brands and rich experience in edible oil industry will help KSO capture the ~Rs600bn refined oil market in India.”

“Based on one year forward P/E, KSO is trading at a discount to its global as well as domestic peers despite having higher earnings CAGR and higher return ratios (RoE). We are positive on the stock on account of its strong edible oil market presence, its growth potential and discounted valuation. At present, stock is trading at near to lower end of its historical forward P/E band of 8x-14x. Hence, we recommend ‘BUY’ the stock,” says Prabhudas Lilladher research report.

IndiaInfoline on HCC - Target Rs 160

IndiaInfoline is bullish on Hindustan Construction Company, HCC and has recommended buy rating on the stock with a target of Rs 160, in its research report.

"On the daily chart, HCC has given a bullish breakout. A detailed analysis of the volumes of HCC reveals that maximum interest has been displayed by the traders in this stock since last week of October 2009. On Thursday, it made a convincing move above the top of the trading range. The daily momentum oscillators i.e. RSI and MACD are suggesting strength in the upmove. Keeping in mind the above-mentioned evidences, we suggest high risk traders to buy the stock between the levels of Rs 149-152 with a strict stop loss of Rs 146 for a short-term target of Rs 160."

Stock views on Colgate Palmolive, Welspun Gujarat Stahl Roh, Rolta India

Hem Securities on Rolta India - Target Rs 255

Hem Securities has recommended a buy rating on Rolta India with a target price of Rs 255 in its research report.

"The company’s future prospects are becoming brighter with the various orders in hand and improving yearly and quarterly performance. Presently, the company is running at a P/B multiple of 2.02x to it’s FY09 book value of Rs.88.42 while the P/E multiple of the company is running at 9.77x to its FY09 EPS of Rs.18.25. However, the industry is running at a P/E multiple of 19.30x which leaves the stock with a significant upside potential. Hence, we recommend 'BUY' on the stock with a medium term price target of Rs.255.00," says Hem Securities' research report.


SKP Securities on Welspun Gujarat Stahl Roh - Target Rs 362

SKP Securities has recommended a buy rating on Welspun Gujarat Stahl Roh with a target price of Rs 362 in its research report.

"Welspun has the strong order book position of Rs 68.4 billion, executable within 12-15 months, of which 80% are export orders and rest are domestic. We recommend Buy rating on the stock with a target price of Rs 362/- in 18 months implying a P/E multiple of 14x of FY11E earnings," says SKP Securities' report.


KRChoksey on Colgate Palmolive - Target Rs 703

KRChoksey has recommended a buy rating on Colgate Palmolive (India) with a target price of Rs 703 in its research report.

"CPIL continues to sustain its leadership position in the Rs. 4,000 crore Indian Oral care industry, with a dominant market share of 50%. CPIL - managed by professionals, having concentrated business model, good cash generation from operations, zero debt and surplus cash bank balance is attractive in the Indian FMCG space. Strong brand loyalty, low penetration level, increased hygiene awareness and increasing contribution from rural India are the growth drivers for the company. We initiate our coverage on the stock with a ‘BUY’ recommendation with a target price of Rs. 703, giving an upside potential of 16%. We have valued the company at a P/E multiple of 20x FY11E EPS of Rs. 30.3," says KRChoksey's research report.

Stock Views on City Union Bank, Reliance Communications, Rolta India, Tata Motors

Angel on Tata Motors - Target Rs 339





Angel Broking has maintained its buy rating on Tata Motors with a target price of Rs 339 in its November 24, 2008 research report. "Jaguar Land Rover (JLR) is in secret talks with the UK government for a £1-billion loan and an answer to the request would be made in the next fortnight, a media report said. Tata is looking to the government for a bridging loan to help it over the next 24 months, a period in which the industry will come under further financial pressure when it is difficult to access funding markets, the report added. The economic downturn has hit the auto industry hard and at present a number of large UK-based industrial groups are also considering asking the government for financial support."



"The market for JLR cars has fallen 25% around the world and this could further deteriorate in near term. JLR has already cut shifts and production days at Solihull, Halewood and Castle Bromwich. The Society of Motor Manufacturers and Traders, which is representing the interests of the wider British industry, is thought to want between £2 billion and £3 billion of state aid. Meanwhile, Toyota has also cut shifts at its UK plants, and Bentley, the luxury carmaker majority-owned by Volkswagen of Germany, has cut shifts at its plant in Crewe. We maintain Buy on Tata Motors with Target price of Rs 339," says Angel's research report.





Karvy on City Union Bank - Target of Rs 31





Karvy Stock Broking has maintained its buy rating on City Union Bank with a target of Rs 31 in its November 24, 2008 research report. "Going forward, we believe that lending and deposits rates would further moderate and incidence of slippages due to higher interest rates would decline but due to lesser growth prospects across industries slippages would increase eventually increasing gross NPA."



"We estimate the bank's NIM for FY09 to drift down by 21 bps to 3.1%. We estimate that the bank's total business and bottomline would grow at 23% and 11% CAGR (during 2008-10) and the bank's book value and adjusted book value would be Rs 24 and Rs 22 respectively; we value the bank at 1.42x adjusted book value FY2010 at Rs 31. We re-iterate our BUY rating with a target price of Rs 31," says Karvy Stock Broking's research report.




Karvy on Rolta India - Target of Rs 220





Karvy Stock Broking has recommended a buy rating on Rolta India with a target of Rs 220 in its November 24, 2008 research report. "We do not expect the margins take any beating and are likely to stay at the current levels of 36%. Even after factoring M-to-M losses of Rs 900 million (as a result of FCCB) in FY09, the profits at the net level would modestly go down by 2.1%."





"The company is contemplating to reduce its foreign currency loans, and if it does reduces the same the company would be entitled reverse the M-to-M losses in FY10, which would give big boost to its earnings, even if the company writes off goodwill over the next 5 years. We have an BUY rating on the stock with a price target of Rs 220," says Karvy Stock Broking's research report.





Anand Rathi on Reliance Communications - Target of Rs 275





Anand Rathi Securities has recommended a buy rating on Reliance Communications with a target price of Rs 275 in its November 22, 2008 research report. "After two dismal quarters, RCOM’s operating performance is likely to show signs of recovery in the coming 1-2 quarters. With several sources of potential upside, the stock offers attractive ST reward/risk ratio. Buy, target of Rs 275," says Anand Rathi's research report.

Invest Shoppe Views on Rolta, Allied Digital Services

Rolta India

The company has strong order book of Rs 1500 crore as on June 2008 with 75% executable over FY09. Of the order book, 55% is domestic and 45% is international. For FY09 the company has guided 23%-24% growth in its earnings post MTM losses. At the current market price, stock trades at 8.9x of FY09E earnings. This makes the stock very attractive, keeping in mind its strong visible growth estimated in all the segments. Since more than 50% of the revenue is from domestic operations and the company does not focus on BFSI Sector, it has limited risk from exchange fluctuations and negligible fear of delay in execution of orders due to the turmoil in international markets. Further, we believe that various JVs in particular their partnership with Stone and Webster for exploiting opportunities in the nuclear power space seems very promising for the long run.

Allied Digital Services

Allied Digital Services (ADSL) is riding on high-growth domestic markets of system integration (SI), IT infrastructure management services (IMS) and remote infrastructure management (RIM). RIM is expected to be $13-15bn opportunity for the Indian IT industry by 2013 from the current US$3.6bn, as per the latest Nasscom and McKinsey report. Recent acquisition of EnPointe Global Services (EGS), the US-based IMS provider, marks ADSL’s foray into international markets. Strong revenue visibility, changing business mix, improving margins and higher return ratio make it a good investment bet. We expect 60%-70% compounded annual growth rate in earning per share over the next three years. At the current market price, stock trades at 11x and 6.8x of FY09E and FY10E earnings, which makes it quite an attractive investment bet

Stock Views on Puravankara Projects, Rolta India, Great Offshore, Sanghvi Movers

Karvy on Puravankara Projects - Buy Target of Rs 302

Karvy Stock Broking has maintained its buy rating on Puravankara Projects with a target price of Rs 302 in its August 12, 2008 research report. "Puravankara declared its 1Q FY09 results which were lower than our expectations. Net sales increased by 31% YoY and 2% QoQ as against our expectations of 58% YoY and 24% QoQ. Net profits for the quarter rose by 41% YoY as against our expectations of 52% on account of lesser than expected share coming from associates."

"Puravankara stands to benefit in the long run. We have revised our price target on Puravankara to Rs 302 per share valuing the company at a 15% discount to our FY10E NPV (Net Present Value) of Rs 356 per share maintaining a BUY at current levels," says Karvy's research report.

Hem Securities on Rolta India - Buy Target of Rs 390

Hem Securities has initiated a buy rating on Rolta India with a target of Rs 390 in its September 10, 2008 research report. "Being one of the pioneer IT companies of the country, Rolta has been on a growth trajectory with its top line and bottom line growing with a CAGR of 37.26% and 36.96% respectively. Presently, the stock is trading at Rs 331.75 which is at 20.30 times to its earnings of Rs 16.34 and 4.51 times to its book value of Rs 73.60. Since the stock seems to offers extremely good investment opportunities, we initiate a ‘BUY’ signal on the stock with a target price of Rs 390 in medium to long term investment horizon expecting an appreciation of about 18% from the current level of Rs 331.75," says Hem Securities' research report.

ULJK Securities on Great Offshore - Buy Target of Rs 664

ULJK Securities has recommended an accumulate rating on Great Offshore with a target of Rs 664 in its September 9, 2008 research report. "Sales are expected to grow at a CAGR of 32% and profit is expected to grow by 21% over FY08-FY10E as contracts are expected to be done at higher day rates. Its EPS is seen at Rs 59.6 in FY09E and at Rs 80.4 in FY10E. At a CMP of Rs 543, the stock trades at a P/E of 9x & 6.6x its FY09E & FY10E earnings respectively. It is trading at EV/EBITDA multiples of 6.5x F2009 and 4.9x F2010. Based on the DCF methodology, we arrive at a share price of Rs 664. We recommend an accumulate rating on the stock with a target of Rs 664," says ULJK Securities' research report.

SKP Securities on Sanghvi Movers - Buy Target of Rs 340

SKP Securities has recommended buy rating on Sanghvi Movers, with 9-month target price of Rs 340, in its report dated September 9, 2008.

“Considering Sanghvi’s dominant position in the crane-hiring business, we believe that it is one of the best proxy plays on the infrastructure boom. With 5 major clients (fast growing capital goods and construction companies) contributing around 70% -75% of the revenues and its cranes being booked for the next 12 to 18 months ensures strong revenue visibility in the forthcoming quarters. Going ahead, factors like demand supply gap, improving rentals and effective utilization will witness SML's topline to grow at a CAGR of 32%. At the current market price of Rs 216.55, the stock is trading at 7.38x FY10E earnings of Rs 29.36. We have taken the avg of P/E and DCF valuations to reach our target price and recommend a buy to the stock with a 9-month target price of Rs 340", says the report