Stock views on Suzlon Energy, KEC International, Mphasis

Anagram Research on Suzlon Energy - Target of Rs 60
Anagram Research has recommended a buy rating on Suzlon Energy with a target price of Rs 60 in its research report.

"In the last 2 years, Suzlon has traded in the range of 16 to 65 times its earnings. Whereas Vestas and Gamesa have traded in the range of 25 to 73 and 24 to 42 respectively. Historically the companies in the wind energy market have traded at high P/E levels primarily due to expected high growth of the industry. Furthermore the recent decline in the stock price of Suzlon presents an excellent opportunity for investment in the company."

"We believe Suzlon will continue to command high P/E on account of better growth prospects, well placed among peers & due to planned backward integration leading to higher margins in the future. We believe most of the bad news has already been factored in the stock price. While the long term story for the Wind Energy sector is intact and Suzlon has done well to survive amongst adversity. We recommend BUY rating on the stock with a target price of Rs 60 in 12 month period," says Anagram's research report.


Bonanza on KEC International - Target of Rs 147

Bonanza has recommended investors to buy KEC International on dips near 105-110 levels, for a target of Rs 147 in its research report.

"A RPG group company KEC is leading tower & transmission line EPC contractor. The Power sector is its main customer. It has order book of Rs 5000 crore, out of which over 70% is from overseas. It is executing orders in 15 countries presently. Given the visibility in earnings the scrip looks a good mid-term investment pick. At CMP, it trades at about 5.5 PE based on FY 09 Estimated EPS of Rs.21.7. Investors can buy on dips near 105-110 levels i.e. 5X PE, for a target of Rs 147 i.e. at PE multiple of 7," says Bonanza's research report.


Emkay Global on Mphasis - Target of Rs 240

Emkay Global Financial Services has maintained its buy rating on Mphasis with a price target of Rs 240 in its research report.

"Mphasis’s strong parentage of HP-EDS has helped it sustain high growth rates in the recent past and we believe that would continue to provide strong support in a tough demand environment. We highlight that Mphasis’s ITO business’s growth is driven by restructuring of EDS’s existing ITO contracts as the new contracts incorporate significant offshore ramp up in Infrastructure outsourcing."

"We highlight that the erstwhile EDS management (prior to the HP takeover) had categorically attributed its improved success rate in new deal wins/renewals to Mphasis’s offshore strength and had indicated that those deals had a substantial offshore component. We believe Mphasis remains the ‘Best Demand’ story in a tough macro environment helped by it’s strong HP-EDS parentage. Maintain BUY with a price target of Rs 240," says Emkay Global Financial Services' research report.

Stock Views on Emco, Bharat Forge, Apollo Tyres

Sharekhan on Apollo Tyres - Target of Rs 45

Sharekhan has maintained its buy rating on Apollo Tyres with a target of Rs 45 in its research report. "The company’s performance may get affected by the demand slowdown and fluctuating raw material prices, but in the long run, the company is likely to benefit from the strong growth opportunities and its leadership position in the market. At the current market price of Rs 19, the stock discounts its FY2010E earnings by 4.2x and quotes at an enterprise value/earnings before interest, tax, depreciation and amortisation of 2.9x. We maintain our Buy recommendation on the stock with a price target of Rs 45," says Sharekhan's research report.


KRChoksey on Bharat Forge - Target of Rs 118


KRChoksey Research has recommended a buy rating on Bharat Forge with a target of Rs 118 in its research report. "Q4FY09 is expected to be better than Q3FY09 as, non-auto business from Mundhwa Plant is expected to contribute the top line with 10-15% utilization rate and auto sales are expected to get some respite. Further in FY10, non-auto segment is expected to contribute revenue to the tune of Rs 500 crore and this would be a growth driver for the company. At the CMP of Rs 87, the stock is trading at 5.3x FY10E EPS of Rs 16.4. We recommend a BUY on the stock with a target price of Rs 118, implying an upside potential of 35.6% from current levels," says KRChoksey's research report.


Anagram on Emco - Target of Rs 68


Anagram Research has recommended a buy rating on Emco with a target of Rs 68 in its research report. "We remain positive on EMCO’s electrical equipment and projects businesses and the three verticals in the power sector i.e., utilities, equipment, and EPC, it is likely to benefit significantly from the strong macro environment in the power sector. Also we view EMCO’s entry into the South African market to be positive. While there would be a certain lead time before this business scales up, we believe geographic diversification increases the revenue visibility substantially for the company. EMCO is entering into coal trading business as it has recently acquired 37.35% stake in Indonesian mines. We expect this new business venture to substantially boost revenue going forward."

"EMCO enjoy 1.3X order book to sales ratio, which are best among its peers. EMCO has highest manufacturing capacity of around 20,000 MVA. Stock had corrected more than 90% from its 52 week high and its is trading nearly 52 week low. At CMP, stock trades at 2.7x and 2.08x FY09 and FY10 earnings with an EPS of RS 14.34 and 18.69 respectively. We recommended BUY rating with the target of 68," says Anagram's research report.

Stock View on Reliance Communications, Idea Cellular, Assam Company, Great Offshore

Angel Broking on Reliance Communications - Target Rs 595

Angel Broking has maintained its buy rating on Reliance Communications (RCOM) with a target of Rs 595 in its September 20, 2008 research report. "We expect RCOM to record a 24% CAGR growth in Top-line over FY2008-10E, while Bottom-line is expected to grow at a CAGR of 17% over the same period. We estimate a relatively flat Margin profile. At Rs 374, the stock is trading at 10.9x FY2010E EPS. We maintain a Buy on the stock, with a Target Price of Rs 595. This includes Rs 479 as the core business value and Rs 116 as the value of the towerco, Reliance Infratel," says Angel Broking's research report.

Angel Broking on Idea Cellular - Target Rs 104

Angel Broking has maintained its buy rating on Idea Cellular with a target of Rs 104 in its September 20, 2008 research report. "At Rs 82, the stock is trading at 14.5x FY2010E EPS. We maintain a Buy on the stock, with a Target Price of Rs 104. This includes Rs 73 as the value of the core business and Idea’s stake in Indus Towers fetches Rs31. We have been conservative on the core business valuations, given the Margin pressures likely to be faced by the company owing to falling ARPUs, intensifying competition and regulatory risks," says Angel Broking's research report.

Anagram Research on Assam Company - Target price Rs 24

Anagram Research has upgraded its rating on Assam Company to buy with a target price of Rs 24 in its September 20, 2008 research report. "At CMP of Rs 20 we find the stock attractively valued. The stock looks expensive in terms of earnings as tea business contributed 80% of earnings while price factors in the future prospects of oil & gas business. We upgrade our rating to Buy with a price target of Rs 24," says Anagram's research report.