Angel Broking views on Jain Irrigation, Finolex, Tata Steel, Tanla Solutions, Amtek Auto

Buy Amtek Auto, target of Rs 300

Angel Broking has maintained its buy rating on Amtek Auto with a target price of Rs 300 in its July 31, 2008 research report. "For 4QFY2008, Amtek Auto (AAL) reported 2.1% growth in Net Sales to Rs 318.2 crore marginally better than our expectation of Rs 315 crore. Higher EOI of Rs 30.5 crore (profit on sale of Amtek India shares of Rs 53 crore and provision on account of loss on revalidation of outstanding forex loan Rs 23 crore) helped to restrict the fall in Bottom-line. AAL reported 17.6% yoy jump in Net Profit to Rs 75 crore (Rs 63.8 crore) on account of which NPM improved by 406bp yoy."

"We maintain a Buy on the stock, with a Target Price of Rs 300. We await further details of the merger of Amtek Auto and its subsidiaries. Hence, our numbers (Standalone and Consolidated) do not include effects of the merger. We will revisit our numbers on getting more details about the merger," says Angel's research report.

Buy Tanla Solutions, target of Rs 292

Angel Broking has maintained its buy rating on Tanla Solutions with a revised 12-month target price of Rs 292 in its July 15, 2008 research report. "Tanla Solutions recorded an impressive 16.2% qoq and an excellent 86.5% yoy growth in Top-line in 1QFY2009. In 1QFY2009, Tanla took several strategic initiatives to grow this business. It acquired Openbit, a Finland-based leading provider of global on-device payments for mobile applications. This company recorded Revenues of USD 15.9 million and EBITDA of USD 0.8 million for CY2007."

"At the CMP of Rs 206, the stock is trading at 7.1x FY2010E EPS. We believe these valuations are attractive, given the strong growth expected in EPS over the next few years. However, on account of the current poor market conditions, we have reduced our target P/E multiple for the stock from 12x to 10x. Consequently, we maintain a Buy on the stock, with a revised 12-month target price of Rs 292 (Rs 339)," says Angel's research report.

Buy Tata Steel, target of Rs 875

Angel Broking has maintained its buy rating on Tata Steel with a target price of Rs 875 in its August 1, 2008 research report. "In 1QFY2009, Tata Steel posted a yoy Standalone Topline growth of 47% to Rs 6,165 crore (Rs 4,198 crore), exceeding our expectations. Despite the hefty Topline growth, Net Profit increased by 22% yoy to Rs 1,488 crore (Rs 1,222 crore) during the quarter."

"At the CMP of Rs 681, Tata Steel is trading at a P/E of 6.0x and EV/EBIDTA of 4.1x FY2010E consolidated Earnings. We believe that the stock is quoting at attractive valuations considering Tata Steel being the most integrated player and Corus has been able to pass on the cost push to customers due to the strong prices in the European markets. We maintain a Buy on the stock, with a Target Price of Rs 875," says Angel's research report.

Buy Finolex Ind with target of Rs 80

Angel Broking has maintained a buy rating on Finolex Industries with a price target of Rs 80 in its August 1, 2008 research report."Finolex Industries registered a top-line growth of 73.2% yoy during 1QFY2009 to Rs 484.5 cr (Rs 279.7 cr) mainly driven by higher volumes and hike in product prices (which were hiked over last year on the back of an increase in raw material prices). Revenues, on a qoq basis, however declined on account of the additional discounts offered on the products by the company to counter competition and boost volumes."

"We maintain our FY2010E EV/EBITDA multiple for the stock at 5x. But, we are pruning our EBITDA estimate for FY2010E to Rs 194 cr (Rs 213 cr), which is primarily due to the reduction in our OPM estimates. We continue to include the value of the 14.5% stake held by the company in Finolex Cables at 25% discount to the current market value of that stock and estimated value of the Pune land, which the company plans to sell at Rs 400 cr. We maintain a buy on the stock, with a revised SOTP target price of Rs 80." Accroding to Angel Broking report.

Buy Jain Irrigation with target of Rs 679

Angel Broking has maintained a buy rating on Jain Irrigation with a price target of Rs 679 in its August 4, 2008 research report."Jain Irrigation (JISL) reported very good set of numbers for 1QFY2009 with revenues spurting 44.9% yoy to Rs 474.3 cr (Rs 327.4 cr) backed by healthy growth in Micro Irrigation (MI), PVC Pipes and Fruit Processing segments. The company has delivered a stellar performance for 1QFY2009 backed by volume growth in majority of its segments as well as higher realisations. Operational performance remained robust with OPMs expansions owing to successful passing on of the high raw material costs to consumers. The stock is currently trading at 13.0x FY2010E FDEPS of Rs 39.9 cr. We maintain a buy on the stock, with a target price of Rs 679." Accroding to Angel broking report.

Top IT Stock Picks

Dollor is back at Rs 44, so whihc are the top IT picks??

Large Cap

• Infosys


• TCS

Mid Cap

• Rolta


• Mastek

Small Cap

• Tanla Solutions


• Bartronics

Stock Views on Ranbaxy, Tanla Solutions, Zee Entertainment, Gammon India

Ranbaxy has 2-year target of Rs 700: Eastern Financiers

According to Eastern Financiers, Ranbaxy Laboratories with the change of ownership, Daiichi Sankyo Limited taking over from Malvinder Singh, we expect the company to grow aggressively and develop. So, the possibility of a de-listing of Ranbaxy stock in the future cannot be ruled out. A 2-year price target of Rs 700 looks possible. Settlement with Pfizer is an important catalyst going forward.

Buy Tanla Solutions, target of Rs 360: Prabhudas Lilladher

Prabhudas Lilladher has maintained its buy rating on Tanla Solutions with a target price of Rs 360 in its July 14, 2008 research report. "Tanla Solutions’ Q1FY09 numbers were above our estimates, especially topline, which grew at 16.2% sequentially to Rs 1,669 million. EBITDA for the quarter grew 15.7% sequentially to Rs 804 million, with margins sliding slightly (20bps) to 48.2%. Net profit grew by 12.8% QoQ to Rs 564 million."

"We expect Tanla to report revenue growth of 105.5% and 46.9% and earnings growth of 56.9% and 40.8% in FY09 and FY10 respectively. We maintain BUY rating on the stock with a target price of Rs 360 (10x FY10E earnings), implying 63.9% upside from current levels," says Lilladher's research report.

Add Zee Entertainment, target of Rs 216: IIFL

IIFL has initiated coverage on Zee Entertainment with an 'ADD' rating and a target price of Rs 216 in its July 16, 2008 research report. "Zee Entertainment is a well-entrenched No 2 in the Hindi general entertainment channel (GEC) space. We expect it to deliver 17% earnings CAGR over FY08-11 even after factoring in a slowdown in advertising spends in FY10. This earnings growth will be driven by: 1) strong growth in subscription revenues, driven by a revamp of the domestic cable distribution; 2) acceleration in DTH subscriber addition with entry of new players; and 3) demerger of Zee Next, which will boost FY10ii earnings by 10%. We initiate coverage with an ADD rating and a target price of Rs 216, based on 18x FY10ii EPS," says IIFL's research report.

Buy Gammon India, target of Rs 281: IIFL

IIFL has recommended a buy rating on Gammon India with a 12-months target price of Rs 281 in its August 4, 2008 research report. "Gammon 1QFY09 results disappointed our and street expectations and were much below management guidance in the 4QFY08 earnings call. Suspension of two projects in Kashmir and Assam resulted in tepid revenue growth. Margins contracted more than expected as the proportion of low margin captive projects in revenues increased."

"Gammon has merged its T&D contracting associate, ATSL with itself. Post downward revision in estimates of organic business and inclusion of ATSL financials, the stock is trading at adjusted FY10ii PE of 7.1x. The stock is cheapest among peers. However, consistent performance is required before the stock re-rates. Buy, 12-months target Rs 281," says IIFL's research report.