Stock views on Sintex, FAG Bearing, Tech Mahindra, Bank of Baroda

HDFC Securities on BOB - Target Rs 336

HDFC Securities has maintained its buy rating on Bank of Baroda with a price target of Rs 336, in its research report." Bank of Baroda (BOB) reported strong PAT growth of 41.4% YoY to Rs 7.1 billion on the back of strong operating performance. PAT was up on the back of NII growth of 46.6% YoY as well as very good treasury performance. Bank of Baroda has improved its NII performance where it has been laggard in last few quarters. It was done by reducing reliance on bulk deposits as well as expanding yield on advances. We maintain our BUY recommendation and price target of Rs 336," says HDFC Securities' report.


Reliance Money on Tech Mahindra - Target Rs 292


Reliance Money has maintained its buy rating on Tech Mahindra with a target of Rs 292 in its research report. "Tech Mahindra (TML) reported disappointing sequential performance with revenues in USD term declining by 14% qoq to USD 231.9 million. Net profit for the quarter declined by 5% qoq to Rs 2228 million (Excluding tax write back of Rs 673 million in Q2FY09). Weak industry environment coupled with expectations of weak results have led to a significant correction in TML shares prices in the last three months, down by 65% from a high of Rs 631 in October 2008. We maintain BUY on TML with a target price of Rs 292, at our target price the stock will be valued at 4X FY10E," says Reliance Money's research report.


Angel Broking on FAG Bearing - Target Rs 350

Angel Broking is bullish on FAG Bearing and has recommended buy rating on the stock with a target of Rs 350, in its report. "FAG Bearings’ prospects are derived from demand arising in the Capital Goods and Automobile industry. We believe industry valuations are likely to remain subdued in the near term due to overall slowdown in the sector. The company posted CAGR of 14% and around 30% in Revenue and Profit over the last five years, respectively. Going ahead, over CY2008-10E, we conservatively model, volumes to record a CAGR of 7-8%, which will drive around 9-10% growth in Revenues and around 10% growth in Net Profit in the mentioned period. We believe Revenue growth will be largely driven by higher contribution from new products."

"We bank on the company’s strong fundamentals of consistently recording high RoE and RoCE. Further, its debt free status would help it post better Bottom-line growth amidst a high Interest Rates regime. At the CMP of Rs 261, the stock is quoting at 4.5x CY2009E Earnings, which is much lower than its historical P/E of around 14x. We maintain a Buy on the stock, with a Target Price of Rs 350 owing to its debt free status and strong Balance Sheet, which would act as a cushion in overall industrial slowdown," says Angel Broking's research report.


IIFL on Sintex India - Target Rs 123

IIFL has recommended an add rating on Sintex India with a target of Rs 123, in its report. "Key raw-material costs are down 40% from their peak and 15% from YTDFY09 average levels in January 2009. We believe a compensating volume growth in FY10 will be difficult, given that OEMs account for 45% of Sintex’s FY09ii revenues. Non-auto OEMs remain vulnerable in the current slowdown as the company lost a US$10m contract in the wind energy segment at Wausaukee. Though aerospace and defence businesses continue to be strong, the company mentioned pricing pressures in the wind energy and medical imaging businesses. We expect Sintex’s revenues and PAT to decline 4% and 13.7% YoY respectively in FY10ii. We downgrade the stock to ADD with a target price of Rs 123/share, at 0.8x FY10ii BV," says IIFL's 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.