Stock Views on Uflex, Orient Paper & Industries, Sun Pharmaceutical Industries

Sharekhan on Sun Pharma - Target Rs 1498

Sharekhan has maintained its buy rating on Sun Pharmaceutical Industries with a price target of Rs 1498 in its report.


"Caraco Pharmaceuticals (Caraco), Sun Pharmaceuticals (Sun)’s US subsidiary, reported its FY2009 results on June 15, 2009. Caraco’s FY2009 sales declined by 3.8% to USD 337.2 million largely due to a 10.8% decline in its manufactured product (manufactured and sold by Caraco) segment and a flattish performance by its distributed product (manufactured by Sun and distributed by Caraco) segment. On Caraco’s present status with the US Food and Drug Administration (USFDA), the Veterans Administration (an agency to US government) has not renewed the contracts for the products sourced from Sun. At the current market price of Rs 1,297, Sun is valued at 14.5x FY2010E and 13.8x FY2011E fully diluted earnings. We maintain our Buy recommendation on the stock with a price target of Rs 1,498," says Sharekhan's report.


Emkay Global on Orient Paper - Target Rs 66

Emkay Global Financial Services is bullish on Orient Paper & Industries (OPIL) and has recommended a buy rating on the stock with a target price of Rs 66 in its June 16, 2009 report. Orient Paper Q4FY09 pre exceptional net profit of Rs 629 million is above our estimates (Rs 500 million) driven by better than expected cement realizations. Net revenues grew by 23.3% yoy to Rs 4.67 billion driven by 20.9% revenue growth for cement division while the same for Paper division grewby 51.4% yoy."

"We expect OPIL cost structure to witness significant transition with company expected to commission 50 MW of thermal captive power plant. Volume boost from cement capacity expansion to 5 mtpa by Q2FY2010 shall further fuel operating performance and improve cost structure with operating leverage coming in to play. We are upgrading our earnings estimate for FY10E by 12.4% to Rs 13.5 and are introducing our FY11E earnings at Rs14.4. At the CMP, the stock is trading at undemanding 4.1x FY10E earnings. We continue to remain bullish on OPIL transition to mid size efficient cement player. Value of non cement business (Rs 6/share) and investments (Rs 2.2/share) provide significant margin of safety. Maintain our 'BUY' rating on the stock with a revised price target of Rs 66," says Emkay Global Financial Services' research report.


Sunidhi Securities on Uflex - Target Rs 100

Sunidhi Securities & Finance has recommended a buy rating on Uflex, with a price target of Rs 100, in its report dated.


"In-spite of the rapid growth achieved by the Indian packaging industry in the past few years, the per capita consumption of packaging paper/board and plastics packaging in India is still very low at around USD 15 against the world average of around USD 100. It provides the real 'opportunity factor' available in the Indian market. At the CMP of Rs 76, the share is trading at a P/E of 2.6 on FY09E and 2.4 on FY10E. We recommend 'BUY' with a target of Rs 100 in the medium term," says Sunidhi Securities & Finance's report