Angel Broking views on Pantaloon Retail, Bosch, Zee News

Angel Broking on Pantaloon Retail - Target of Rs 239

Angel Broking has maintained its buy rating on Pantaloon Retail with a target price of Rs 239 in its research report.

"We are bullish on the long-term growth prospects of the Retail Sector despite the ongoing slowdown in the economy. Our Top Pick PRIL is the largest player in the Indian Retail Sector. We are positive on PRIL as it has been able to maintain its growth (YTD) at a healthy 31% on a Standalone basis and 34% on a consolidated basis despite the slowdown. We believe that PRIL Standalone would be able to meet our FY2009 and FY2010 Net Sales estimates of Rs 6,894 crore and Rs 8,492 crore, respectively. We estimate PRIL Standalone to clock Net Profit of Rs 154.6 crore and Rs 217.8 crore in FY2009 and FY2010, respectively.

On the bourses, the PRIL stock has witnessed significant correction in the past few months and is currently trading at attractive valuations and provides favourable risk-reward for the investors. We have valued PRIL's stake in FCH, HSRIL and Future Bazaar at Rs 33, Rs 13 and Rs 20, respectively. We maintain a Buy on the stock, with SOTP target price of Rs 239, translating into an upside of 73% from current levels," says Angel Broking's research report.


Angel Broking on Bosch - Target of Rs 3600

Angel Broking has maintained its buy rating on Bosch with a target price of Rs 3,600 in its research report.

"For 4QCY2008, Bosch India reported 13.5% yoy growth in Net Sales to Rs 974 crore, which was marginally below our expectation of Rs 994 crore. This came on back of 17% yoy decline in Auto segment while other businesses posted robust 33.1% growth. We maintain a Buy on the stock, with a target price of Rs 3,600 at which level the stock would trade at a P/E of 18x," says Angel Broking's research report.


Angel Broking on Zee News - Target of Rs 37

Angel Broking has recommended a buy rating on Zee News with a target price of Rs 37 in its research report.

"We have valued ZNL on DCF Methodology to capture long-term value creation from the Regional markets and the growing Subscription opportunity, particularly for Broadcasters. Moreover, ZNL's current Earnings and Cash flows do not capture full potential of its new businesses (these are under heavy investment mode), which we believe are likely to substantially bolster Profitability post attaining maturity."

"Assuming WACC of 12.3% and Terminal growth rate of 4%, our target price based on FY2010 estimates works out to Rs 37 at which the stock would trade at a P/E of 14.9x and EV/EBITDA of 8.1x, which is significantly below its historical average P/E band of 25-30x. We initiate coverage on the stock, with a buy recommendation implying potential upside of 28% from current levels," says Angel Broking's research report.