Sushil Finance views on Mangalam Cement, Avaya GlobalConnect, Ahluwalia Contracts

Sushil Finance on Mangalam Cement - Target Rs 235

Sushil Finance has recommended buy rating on Mangalam Cement with a target of Rs 235, in its research report.

"Mangalam Cements (MCL), a B.K. Birla Group company, manufactures Cement and Portland Pozzolana Cement (PPC) using the dry process and markets them under the brand names of Mangalam and Birla Uttam. The manufacturing units of the company namely Managalam Cement and Neer Shree Cement are both located at Morak in the Kota district of Rajasthan. The company has a very strong Balance Sheet with zero Net Debt & Net Cash of Rs 285 million and we expect it Net Cash accruals to grow to Rs 2084 million by FY11. At the CMP, the stock trades at an attractive valuation of 3.9x its FY11 earnings and EV/EBIDTA of 1.2x FY11E, with high FY11 ROE of +20%," says Sushil Finance research report.

Sushil Finance on Avaya GlobalConnect - Target Rs 245

Sushil Finance has recommended buy rating on Avaya GlobalConnect with a target of Rs 245.
"Avaya GlobalConnect, with its best in class communications products & solutions and alliances with global technology leaders, is uniquely positioned to offer high-quality solutions to enterprises across industries. Recently, the Company has taken several measures to reduce its operating cost and has developed many industry-specific solutions, which are well-accepted by its customers. These continuous efforts have started benefiting the Company, while in Q4FY09 its profitability has improved significantly. Going forward, we expect AGC’s consolidated APAT to grow by 36.5% & 22.7% in FY10E and FY11E respectively."

"At the CMP, the stock is trading at an attractive valuation of 9.1x & 7.4x its FY10E & FY11E earnings of Rs. 20 & Rs. 24.5 respectively. Moreover, AGC has strong balance sheet with high net cash and is available at an attractive 2.3x FY11E EV/EBITDA. We recommend “BUY” rating on the stock, with a price target of Rs 245, at which the stock would quote at PER of 10x based on FY11E Earnings," says Sushil Finance research report.

Sushil Finance on Ahluwalia Contracts - Target Rs 228

Sushil Finance has recommended buy rating on Ahluwalia Contracts with a target of Rs 228, in its research report.

Ahluwalia Contracts, ACIL has a strong order book of Rs 53 billion and its order-book to bill ratio is likely to improve further in near future. This gives a clear visibility to the earnings of the company for more than two years. Its strategy to increase infrastructure order book would ensure growth until a demand revival is seen in the retail and commercial projects. We expect the company to grow at a CAGR of 30% for next two years. At CMP , the stock is trading 14x FY11E EPS of Rs.14 & 10x FY12E EPS of Rs 19. Given its strong order book, strong balance sheet and proven track record of the management of timely execution of the projects, ACIL is well poised to ride the construction boom in the country and thus we initiate coverage with a Accumulate rating on the Company with a target price of Rs 228 (based on 12x its FY12E EPS of Rs 19).

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 Globus Spirits, Patel Engineering, Balkrishna Industries

Sunidhi Securities on Globus Spirits - Target Rs 120

Sunidhi Securities & Finance has come out with a research report on Globus Spirits (GSL). The research firm has recommended buy with a target price of Rs 120, in its report

"GSL is in the process of acquiring Canteen Stores Department (CSD) registered brand for Rs 3 crore as it intends supplying to the Defence Services. Thus, the brand will have the requisite presence in the CSD market as well. GSL plans to simultaneously make its presence felt in the civil market too. At the CMP of Rs 93, the share is trading at a P/E of 7.6x on FY10E and 5.6x on FY11E. We recommend buy with a target price of Rs 120", says Sunidhi Securities & Finance.


Sushil Finance on Patel Engg - Target Rs 572

Sushil Finance is bullish on Patel Engineering and has recommended buy rating on the stock with a target of Rs 572 in its research report.

“Patel Engineering has a strong order book which gives clear visibility for next two years. The strong thrust on infrastructure and irrigation projects has enabled its topline to grow at a robust pace. Q2FY10 results have been in line with our estimates and hence we have retained our numbers for FY10 and FY11.”

“We have valued its core business at 10 times its FY11E core earnings. We value its BOT projects at Rs 13 per share. On the real estate front, we continue to conservatively value just the land bank at Rs 175 per share (i.e. at a 50% discount to the valuation done by M/S DTZ on a “as is where is” basis), although Patel would start booking revenues by Q3FY10. Likewise, while Patel has started investing in its power projects, since the Revenue generation will take some time, we have considered its investment in Power projects at just 1x its book value, hence, we have valued the QIP proceeds to be used for investments at Rs. 41 per share (1x its BV). On SOTP basis, we value the business at Rs 572 per share. We retain our Buy rating on the stock with target price of Rs 572,” says Sushil Finance research report.


Sunidhi Securities on Balkrishna Industries - Target Rs 550

Sunidhi Securities & Finance has come out with a research report on Balkrishna Industries (BIL). The research firm has recommended buy with a target of Rs 550 in the medium term, in its report

"BIL is likely to post an EPS of Rs 98 in FY10 and Rs 101 in FY11. At the CMP of Rs 419.50, the share is trading at a P/E of 4.3x on FY10E and 4.2x on FY11E. We recommend buy with a target of Rs 550 in the medium term", says Sunidhi Securities & Finance.

The report also says, "Balkrishna Industries stock is in a clear uptrend since March’09. It has been consistently making higher highs & higher lows. However, it is currently resting on the upsloping support trend line and forming sideways consolidation. Technically, the stock can move upto Rs 670 in the medium-term. One can keep a stop-loss of Rs 380."

Stock views on Nava Bharat Ventures, Godawari Power and Ispat, Deccan Chronicle

Sushil Finance on Nava Bharat Ventures - Target Rs 517

Sushil Finance is bullish on Nava Bharat Ventures and has recommended buy rating on the stock with a target of Rs 517, in its research report.

“Nava Bharat Ventures, NBVL is an evolving Power utility, with 237 MW of operational capacity (including 9 MW bagasse based power plant). It has strategically aligned itself to downsize its Ferro alloys business which is highly cyclical in nature. The Company sells most of its power on merchant basis and has potential to generate and sustain strong ROE with the future projects like coal & manganese mining and foray into real estate. One of the major risks to our assumption would be downward pressure on the merchant rates which could hamper its margins."

"However, with the economy on the revival mode aided by rise in industrial production and persisting power deficit scenario, the merchant tariffs are expected to be stay in the range of Rs. 5 – 7 for next few years. NBVL has a strong balance sheet with very low leverage. With strong operational cash flows it is in a strong position to fund its future projects. At CMP of Rs.379, the stock is trading 1.5x FY11E BVPS & 1.2x FY12E BVPS and PE of 6.9x FY11E and 5.8x FY12E . We believe that it is at a significant discount to its intrinsic value & thus we initiate coverage with a BUY rating on the Company with a target price of Rs.517 (based on 1.7x its FY12E BVPS of Rs. 304.2),” says Sushil Finance research report.


Angel Broking on Deccan Chronicle - Target Rs 216

Angel Broking is bullish on Deccan Chronicle and has recommended buy rating on the chat with a target of Rs 216, in its research report.

“In our note dated September 22, 2009 (Deccan Chronicle: Charged up for second innings), we had outlined our positive stance on Deccan's IPL team stating, 'We remain optimistic on IPL's money-making prospects and any news flow on the stake sale front will trigger a re-rating in the DCHL stock'. Further, we had stated that, 'The next IPL team auction in 2011 is expected to set a benchmark post which DCHL might reconsider its position to dilute stake'. With IPL's recent announcement of auction (slated for January 19, 2010) of two new franchises for the 2011 edition at a base price of US$ 225 million, we believe that the floor is set for DCHL's stock to get re-rated. In our 2QFY2010 result note, we had valued DCHL on a consolidated basis at 12x FY2011E EPS of Rs 12.4 and arrived at a target price of Rs 149. Post this development and roll-over to FY2012E, we upgrade Deccan Chronicle Holdings, DCHL to a Buy, with a revised target price of Rs 216," says Angel Broking research report.

Emkay Global Financial Services on Godawari Power - Target of Rs 261

Emkay Global Financial Services has recommended a buy rating on Godawari Power and Ispat, with price target of Rs 261, in its report dated December 17, 2009. The stock closed at Rs 182.15
"Godawari Power and Ispat has embarked upon backward integration program with 0.6mtpa pelletization plant, 14mt captive iron ore mines and setting up additional 20MW captive power plant. The pellet plant is expected to be operational by Dec ’09 end helping GPIL to increase sponge iron capacity utilization and also to increase the topline and bottomline with the surplus pellet sales in the market. GPIL had already commenced Ari Dongri (Chhattisgarh) iron ore mine, having reserves of 7mt", says Emkay.

The report also says, "The company is also under the process of commencing Borai Tibbu (Chhattisgarh) iron ore mine, having reserves of 7mt, in next 3-4 months. This will lead to significant reduction in cost of production, generating savings of around Rs 2,000/t of sponge iron. Additonal 20MW captive power plant, which will be operational by Dec ’09, will be available for selling in merchant market, generating incremental margins. GPIL is expected to report earning CAGR of 60% for the period FY09-FY11E."

"Overall, the recent management meeting further supported our positive view on the stock, which is being supplimented by the current attractive valuations. At the CMP of Rs 170, the stock is trading at 13.8x FY10E EPS of Rs 12.3 and at 3x FY11E EPS of Rs 56.1. On EV/EBITDA basis, the stock is trading at 7.4x FY10E EV/EBITDA and at 2.9x FY11E EV/EBITDA; while on P/B basis, the stock is trading at 1x FY10E book value and at 0.8x FY11E book value. We maintain BUY on the stock with revised target price of Rs 261 (4x FY11E EV/EBITDA)," says Emkay Global Financial Services report.

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 Patel Engineering, Federal Bank, Unity Infra

Sushil Finance on Patel Engineering - Target Rs 572

Sushil Finance has maintained its buy rating on Patel Engineering with price target of Rs 572, in its report.

“Patel Engineering has continued its strong performance on quarterly basis and we are confident that it would be able to deliver a strong growth going forward. However, rising interest rates and depreciation expense has slowed down its bottom-line growth.”

FinQuest Securities on Federal Bank - Target Rs 300

FinQuest Securities has maintained its buy rating on Federal Bank, with price target of Rs 300, in its report.

"We expect Fed Banks' profits to grow at a CAGR of 19% over FY09-FY11E leading to ROE of 14% by FY11E. Management has indicated that the merger with CSB (Catholic Syrian Bank) bank will materialise in next six months. We maintain 'Buy' rating with a target price of Rs 300 (1x FY11E ABV)," says FinQuest Securities' report.

Sharekhan on Unity Infra - Target Rs 430

Sharekhan has maintained its buy rating on Unity Infraprojects with a target price of Rs 430 in its research report.

"Unity Infraprojects (Unity)’s Q1FY2010 revenues grew by 24.6% year on year (yoy) to Rs 278.6 crore, which is in line with our expectation. We maintain our 'Buy' recommendation on the stock with the revised price target of Rs 430. At the current market price, the stock is trading at attractive valuation of 6.2x FY2010 and 5.8x FY2011 earnings estimates and 0.8x FY2011 P/BV," says Sharekhan's research report.

Stock Views on JMC Projects, Supreme Industries, SBI

Sushil Finance on JMC Projects - Target Rs 260

Sushil Finance has recommended a buy rating on JMC Projects with a revised price target of Rs 260 in its report.

"After incorporating its FY09’s performance and based on our interaction with the management, we have revised our FY2010 numbers and introduce our FY2011 estimates. We expect the company to deliver EPS of Rs 19.5 and Rs 26 in FY10 & FY11 respectively (on expanded equity post the proposed rights issue). We retain our “BUY” rating on the stock with a revised price target of Rs 260 (10x FY11E EPS)," says Sushil Finance research report.


Sushil Finance on Supreme Industries - Target Rs 395

Sushil Finance has maintained its buy rating on Supreme Industries with a target price of Rs 395 in its report.

"Supreme Industries, SIL has delivered strong business growth & is well on its way to deliver strong growth in the coming years. After incorporating its FY09’s performance and based on our interaction with the management, we have revised our FY2010 numbers and introduce our FY2011 estimates. We now expect its FY2010 & FY2011 EPS to be Rs 40 & Rs.46 respectively. We retain ‘BUY’ rating on the stock with an increased target price of Rs 395 (8x its FY10E Earnings plus value of Andheri property at Rs. 75 per share)," says Sushil Finance's research report.

KRChoksey on SBI - Target Rs 2054

KRChoksey has maintained its buy rating on State Bank of India (SBI) with a price target of Rs 2054 in its report.

"With its surplus liquidity and balance sheet size, we believe SBI will be a major beneficiary of pickup in credit demand. SBI’s non banking subsidiaries (SBI Capital Markets, SBI Mutual Fund and SBI Life Insurance) will benefit from uptick in capital markets and corporate activity. We maintain a Buy on SBI with a target of Rs 2054, giving an upside potential of 12% from the current levels," says KRChoksey's report.

Stock vews on Suzlon, Dishman Pharma, 3i infotech

Prabhudas Lilladher on Suzlon - Target Rs 113

Prabhudas Lilladher has maintained its accumulate rating on Suzlon Energy with a target price of Rs 113 in its research report.

"Suzlon Wind (excl. Hansen & REPower) de-grew by 44%% YoY to Rs 11.6 billion in Q1FY10 as it sold only 123MW as against 338MW in Q1FY09. Since Suzlon is actively looking to sell in part or the entire stake in Hansen, we have done a SOTP, wherein we have assigned a value of Rs 23 per share (20% discount to market price) for its entire Hansen stake. Also, the target P/E of 10x FY11E earnings for the consolidated entity (Suzlon Wind and REPower) gives us a target price of Rs 113. We maintain an ‘Accumulate’ on decline rating," says P Lilladher's research report.


Reliance Money on Dishman Pharma - Target Rs 221

Reliance Money has maintained its buy rating on Dishman Pharmaceuticals & Chemicals Ltd with a price target of Rs 221 in its report.

"Dishman Pharmaceuticals reported below expected revenues by declaring 4% fall to Rs 2281 million primarily due to lower take-off of Eprosartan (which normally contributes around 17% of total revenue) by Solvay as it was undergoing a inventory rationalization (that resulted in 40% fall in Dishman’s domestic CRAMS operation).With a stronger operational and financial outlook, we maintain our positive stance on Dishman."


Sushil Finance on 3i infotech - Target Rs 116

Sushil Finance has recommended a buy rating on 3i infotech with a target of Rs 116 in its report.

"Given the current uncertain and challenging environment, 3i infotech has delivered a muted performance during Q1FY10. However, the Company is much better placed as compared to many of its peers and it has a good business balance in terms of geographical spread & portfolio of offerings. The recent acquisition of JP Morgan Treasury Services’ National Retail Lockbox Business (NRLB) by its subsidiary, Regulus Group is also a strategic move and expected to help 3i achieve operational efficiencies and drive value within its Transaction Services Revenue chain."

Stock Views on Glodyne Technoserve, Bank of Maharashtra, Jubilant Organosys

Reliance Money on Glodyne Techno - Target Rs 575

Reliance Money has maintained its buy rating on Glodyne Technoserve, with price target of Rs 575, in its report.

"We view this acquisition as a positive development for Glodyne Technoserve, however we are still awaiting for the finer details of the deals and integration process. We maintain our earlier estimates for FY10E and FY11E for the company and will rework on our estimates after our meeting with the Glodyne’s management. At the current market price Rs 466, Glodyne is trading 5x FY10E and 4x FY11E. We maintain 'BUY', with a target price Rs 575," says Reliance Money's report.

Sushil Finance on Bank of Maharashtra - Target Rs 46

Sushil Finance has recommended a buy rating on Bank of Maharashtra, with price target of Rs 46, in its report.

"Bank of Maharashtra (BOM) has high CASA share of 35.7% will help the bank in maintaining its low funding cost (5.9% in FY09). Strong business growth, high CASA ( 36%), decent asset quality, sustainable ROE of about 16%, strong network base, comfortable CAR of 12% with finance ministry promising to infuse the required capital in BOM, scope for growing advances due to low Credit deposit ratio and decent dividend yield of +5% are the other key positives for the bank. Stock is trading at a valuation of 0.7x FY11E ABV and 3.3x FY11E Earnings. Buy with price target of Rs 46," says Sushil Finance's report.

Reliance Money on Jubilant Organosys - Target Rs 203

Reliance Money has maintained its buy rating on Jubilant Organosys with a revised target price of Rs 203 in ite report.

"Jubilant Organosys reported a muted growth of 8% in its consolidated revenues to Rs 9013 million in Q1FY10, as the Industrial and Performance Products (IPP –that contributes about 30% of total revenue) Revenues saw 8% decline on account of lower realization and product rationalization. Despite global slowdown and inventory issues, Jubilant has been delivering steady growth in its CRAMS operation and we expect similar trend going ahead. Further increasing R&D pacts provide us long term visibility for the company. Also, the margin expansion seems to be continuous process for Jubilant. Looking at the steady revenue growth with better profitability and reducing balance sheet risk for Jubilant, we maintain our 'BUY' rating with the revised target price of Rs 203 (7x FY11EPS), " says Reliance Money's report.

Stock Views on Aditya Birla Nuvo, ITC, Divis Laboratories

Indiabulls Sec on Aditya Birla Nuvo - Target Rs 1035

Indiabulls Securities Research has maintained its buy rating on Aditya Birla Nuvo with a target price of Rs 1035.

"Aditya Birla Nuvo (ABNL) reported results, which are above our expectations. The Company's consolidated net sales registered a growth of 15.3% yoy in FY09. Most of the Company’s segments have displayed an improvement in Q4’09. Accordingly, we have upwardly revised our estimates, and it has resulted in an increase in our fair value estimate. Further, we continue to believe that the Company's growing Life Insurance and Telecom businesses along with the improving performances of its other businesses will provide long-term value to the shareholders. Thus, we reiterate our 'Buy' rating on the stock. We have valued the Company by using the sum-of-the-parts methodology; our fair-value estimate of Rs 1,035 suggests a potential upside of 17% from the current market price. Hence, we reiterate our 'Buy' rating," says Indiabulls Securities' research report.

Motilal Oswal on ITC - Target Rs 237

Motilal Oswal has maintained its buy rating on ITC with a target price of Rs 237 in its research report.

"The stock has appreciated by about 12% in the last couple of trading sessions – perhaps the highest rise in reaction to budget pronouncements in recent times. We remain positive on ITC’s long-term prospects. We have upgraded our FY10E EPS to Rs 10.2 (Rs 9.9 earlier) and FY11E EPS to Rs 11 .6 (Rs11.3 earlier), factoring in no excise increase and removal of fringe-benefit tax (FBT). Maintain Buy with FY11E SOTP value of Rs 237," says Motilal Oswal's research report.

Sushil Finance on Divis Lab - Target Rs 1490

Sushil Finance has recommended a buy rating on Divis Laboratories with a target price of Rs 1490 in its report.

"In spite of the economic slowdown, DLL has managed to maintain its above average industry margins in FY09. DLL does expect some pressure on its Custom Chemical Synthesis Business (CSS) business but is banking on API sales of Levirecetam, lopamidol & nabumetone which will offset the slowdown in other businesses. Seeing the growth prospects & above industry average margins the stock deserves to trade at higher multiple. At the CMP, the stock trades at 13.3x its FY11E earnings. It has recommended buy rating on the stocks, target of Rs 1490," says Sushil Finance's research report.

Stock Views on Godawari Power & Ispat, Divis Lab, Lupin

Karvy on Godawari Power & Ispat _ Ttarget Rs 128

"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.

Emkay Global on Lupin - Target Rs 980

"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.

Sushil Finance on Divis Lab - Target Rs 1490

"In spite of the economic slowdown, DLL has managed to maintain its above average industry margins in FY09. DLL does expect some pressure on its Custom Chemical Synthesis Business (CSS) business but is banking on API sales of Levirecetam, lopamidol & nabumetone which will offset the slowdown in other businesses. Seeing the growth prospects & above industry average margins the stock deserves to trade at higher multiple. At the CMP of Rs.1160, the stock trades at 13.3x its FY11E earnings. It has recommended buy rating on the stocks, target of Rs 1490," says Sushil Finance's research report.

Stock views on Federal Bank, Blue Star, ABG Shipyard

Sushil Finance on Blue Star, target of Rs 385

During FY09, Blue Star’s net sales increased by 15% YoY to Rs 25689.5 million. Its EBIDTA increased by 16% at Rs 2725.8 million, while the EBIDTA margins decreased by 100 bps to 10.6%. It’s APAT increased by 22.8% to Rs 1803.1 million. Its EPS for the year stood at Rs 20. BSL has declared a dividend of 180% during FY09. At the CMP of Rs 298, the stock trades at 11.3x its FY11E earnings and 0.7x FY11E BV. Buy with target of Rs 385," says Sushil Finance's report.

Prabhudas Lilladher on ABG Shipyard, target of Rs 230

"Although ABG’s debt increased from Rs 12 billion in Q3FY09 to Rs 15 billion in Q4FY09, the overall finance charge declined from Rs 513 million in Q3FY09 to Rs 302 million in Q4FY09. Besides a change in the accounting policy, LC and bank guarantee charges were lower in the quarter. The company also converted certain working capital loans to commercial paper, thereby leading to a decrease in the average borrowing cost. ABG’s net profits increased by 12.8% YoY and QoQ on account of this saving. ABG currently trades at a PER of 8.9x FY10 and 6.3x FY11 (ex-subsidy). We expect the company’s profits (ex-subsidy) to grow at 16.2% CAGR over the next two years. We maintain our ‘Accumulate’ rating on the stock, with target price of Rs 230," says Prabhudas Lilladher's report.

FinQuest Sec on Federal Bank; target of Rs 300

"Federal Bank is Kerala based bank having a network of 617 branches and business size of INR 550 billion (FY09). The bank is targeting a business of INR 1000 billion by FY11. SME and retail account for 65% of the loan book resulting in higher yield on loans. The bank had raised INR 21 billion via rights issue in FY08. Currently, Federal Bank is trading at 0.9x FY10 and 0.8x FY11 ABV. We have a target price of Rs 300 (1x FY11 ABV) and Buy recommendation on the stock," says FinQuest Securities' report.

Sushil Finance views on Assam Company, Shiv-Vani Oil, Shanthi Gears

Sushil Finance on Assam Company, target of Rs 21

"ACL is one of the leading producers of the most exquisite, high-quality, premium tea. The Company operates through 17 tea estates and gardens with planted area of about 8644.2 hectares on a grant area of 14663.8 hectares. The average yield per hectare stands at 1983 kgs. The Company manufactures around 17 mn kgs of tea and being a bulk manufacturer, 95% of the operations are undertaken through B2B route. The company also has invested in Austin Exploration Ltd., a company having interest in oil & gas blocks in Australia and USA. The company is expected to deliver very decent earnings growth from oil and gas segment. The stock currently trades at 11x its FY10E fully diluted equity earnings and 1.0x BV. Buy the stock with target of Rs 65," says Sushil Finance's report.

Sushil Finance on Shiv-Vani Oil, target of Rs 380

Shiv-Vani has incurred a capex of about Rs 9 billion during FY09, of which, Rs 7.7 billion were expensed to add 11 short rigs, taking the total number of rigs to 40. At the CMP of Rs 303, the stock currently trades at 6.6x FY11E earnings and 1.1x ABV of FY11E. Buy the stock with target of Rs 380," says Sushil Finance's report.

Sushil Finance on Shanthi Gears, target of Rs 65

"On back of the tough business environment, Shanthi has taken measures to revamp and restructure the entire operational and organizational structure, which may lead to scaling down of plant operations, cutting back its personnel and administration costs and a re-look at all the contracts. Shanthi has moderated its capital expenditure plans and may spend only Rs 250-300 million in FY 10. Shanthi has the highest margins in the peer group and the return ratios are also considerably high. Capital intensity in its Business is not very high leading to high cash generation. At CMP of Rs 46, the stock is trading at a valuation of 1.4x its FY11E ABV & 8.4x FY11E Earnings. Buy the stock with target of Rs 65," says Sushil Finance's report.

Stock views on Jindal Steel, Zicom, Maharashtra Seamless

IIFL on Jindal Steel, target of Rs 2884

"Jindal Steel and Power (JSPL) is expanding its power generation capacity from 1,333MW to 5,000MW by FY13ii. We believe that given the sustained peak power deficit in India and resultant high power prices (which are up 125% since FY04), its strategy to sell power through short-term PPAs will pay off handsomely, like the 1,000MW plant of its subsidiary Jindal Power (PAT of 15bn, RoE of 93% in FY09, the first year of operations). We forecast consolidated earnings will register a CAGR of 11% through FY12ii, despite weak steel prices, aided by 21% CAGR growth in power business profit. A unique revenue model (vertical integration + opportunistic sale of power) and visibility on expansion makes JSPL a good play on peak power deficit, Add," says IIFL's reports.

Sushil Finance on Zicom, target of Rs 145

"Zicom has got strong software capabilities relating to the security business. It has also integrated all the multiple security applications into one coordinated hardware and software package. The company has secured various Government projects including Mumbai City Surveillance, Bangalore City Surveillance, Kolkata Metro, Mumbai Western Railway. During 9MFY09, the Company has delivered a decent performance. Its consolidated revenues, EBITDA and net profit after minority interest stood at Rs. 2,719.1 million, Rs. 353 million & Rs. 134.1 million respectively. It has posted an EPS of Rs. 10.6 for the period under review. The stock currently trades at 7.2x its FY10E earnings and 1.0x FY10E BV. 'Buy' the stock with target of Rs 145," says Sushil Finance's report.
Sushil Finance on Maharashtra Seamless, target of Rs 335

"Maharashtra Seamless Ltd. (MSL) is one of the largest manufacturers of seamless tubes with a production capacity of 350 000 tons MSL also manufactures ERW pipes. The total unexecuted Order Book of the Company as at Mar. ‘09 stands at Rs 5,700 million, to be executable over the next one year. The company has net cash of around Rs. 5,000 million in its books. The company plans to productively use the cash partly to fund its capacity expansion plans & to meet its working capital requirements over the next 2 years. At the current market price the company is trading at 7 4x its FY09EPS of Rs 36 and 1 4x. Buy the stock with target of Rs 335," says Sushil Finance's report.