Stock Views on CEAT, JK Tyre, Sunil Hitech Engineers, Blue Dart, Unichem Labs

Angel on Ceat - Target of Rs 43


Angel Broking has recommended a buy rating on Ceat with a target price of Rs 43 in its November 21, 2008 research report. "The current global economic situation also hampers the possibility of large scale exports, though the global price is higher by Rs 22 per kg (Bangkok — Rs 87) than the price in the Indian market. But, there is no hurry in the industry, especially the tyre manufacturers, to stock rubber heavily. The Tyre industry strongly believes that the price would further decline and Rs 50 seems to be within reach. We recommend a Buy on CEAT with target price of Rs 43," says Angel's research report.


Angel on JK Tyre - Target Rs 57


Angel Broking has recommended a buy rating on JK Tyre and Industries with a target of Rs 57 in its November 21, 2008 research report. "The current global economic situation also hampers the possibility of large scale exports, though the global price is higher by Rs 22 per kg (Bangkok — Rs 87) than the price in the Indian market. But, there is no hurry in the industry, especially the tyre manufacturers, to stock rubber heavily. The Tyre industry strongly believes that the price would further decline and Rs 50 seems to be within reach. We recommend a Buy on JK Tyre with target price of Rs 57," says Angel's research report.


Karvy on Unichem Labs - Target of Rs 270


Karvy Stock Broking has maintained its buy rating on Unichem Laboratories with a target price of Rs 270 in its November 21, 2008 research report. "We have decreased our formulations exports by 9 % to Rs 900 million for FY09 while we have maintained domestic API revenues of Rs 200 million for FY 09 and FY 10 respectively. We have also marginally decreased our R & D expenses for FY 2009 while we increase our personnel expenses for FY 2010 in lieu of higher increment in next year. In FY 2009 the company's personnel cost are not anticipated to increase much as the company's performance was subdued in FY 2008. We have marginally increased our EPS estimates for FY 2009 by 0.8% to Rs 26.3 and have reduced our EPS for FY 2010 by 3.6 % to Rs 34.8. We maintain BUY rating on the stock with a price target of Rs 270 based on 7.75x (FY 2010E EPS Rs 34.8)," says Karvy's research report.


KRChoksey on Blue Dart - Target of Rs 520


KRChoksey Research has recommended a buy rating on Blue Dart Express with a target price of Rs 520 in its November 19, 2008 research report. "Net sales increased 27.8% y-o-y and 8.6% q-o-q to Rs 265.8 crore driven by increase in the average pricing (15-20% in air cargo charges and 10-15% in the ground network service charges). We recommend a BUY on this stock with target price of Rs 520, which represents an upside potential of 21.8%," says KRChoksey's research report.


KRChoksey on Sunil Hitech Engineers - Target of Rs 127


KRChoksey Research has recommended a buy rating on Sunil Hitech Engineers with a target price of Rs 127 in its November 18, 2008 research report. "Net sales surged by 88.7% (YoY) to Rs 131.1 crore in Q2FY09 as against Rs 69.5 crore in Q2FY08. On back of large scale investment in Power sector, integration of company’s business, core competence of management, strong order book and client base, we recommend a BUY on the stock with the target price of Rs 127," says KRChoksey's research report.

Karvy Stock Views on Defensive Healthcare / Pharma - Part II - Aventis Pharma, Unichem Labs, Jubilant Organosys

Aventis Pharma - Target of Rs 1000

Karvy Stock Broking has maintained its buy rating on Aventis Pharma with a target of Rs 1000 in its October 13, 2008 research report. "Net revenues for the quarter are expected to be higher by 8 % to Rs 2.44 billion. Domestic revenues are expected to show 8 % growth for the quarter. Exports are expected to grow by 8 % to Rs 520 million for the quarter and continue the positive trend set in the preceeding quarter. Currently the stock is quoting at 12.2x CY2008E and 11.1x CY 2009E. We believe the company will undergo a rerating process as it delivers better results going forward. We continue to rate the stock as a BUY with a price target of Rs 1,000 based on 14x CY 2009E," says Karvy Stock Broking's research report.

Unichem Labs - Target of Rs 240

Karvy Stock Broking has maintained its buy rating on Unichem Laboratories with a target of Rs 240 in its October 14, 2008 research report. Net revenues for the quarter is expected to grow by 18% to Rs 1,771 million on the back of 15 % growth in domestic formulations business to Rs 1357 million while there has been greater traction in exports with growth of 23 % to Rs 374 million on account of depreciation of the rupee and buoyed by API exports."

"Profits for the quarter are expected to be higher by 43.7% to Rs 305 million. We downgrade our price target by 11 % to Rs 240 based on 8x FY 2010E. We maintain BUY on the stock," says Karvy Stock Broking's research report.

Jubilant Organosys - Target of Rs 300

Karvy Stock Broking has recommended a buy rating on Jubilant Organosys with a target of Rs 300 in its October 13, 2008 research report. "We expect 37% CAGR growth in net revenues from Rs 24.9 billion in FY08 to Rs 46.8 billion in FY10E driven by strong growth from the CRAMS segment coupled steady revenues anticipated from the IPP (Industrial Performance and Products) business. The higher molasses and alcohol prices will remain a concern for the company. The stock is currently quoting at 9.6 x FY 2009E (EPS Rs 21.5) and 8.2 x FY10E (EPS Rs 25.3). On account of compression in valuations we reduce our price target by 21 % to Rs 300 based on 12 x FY 10E, Buy," says Karvy Stock Broking's research report.