Stock views on Jyoti Structures, Texmaco, JP Associates

Hem Securities on Jyoti Structures - Target Rs 200

Hem Securities has recommended a buy rating on Jyoti Structures with a target price of Rs 200 in its research report.

"The company has registered decent set of numbers for the quarter ended June 2009. Net sales stood at Rs.4,847.32, million up by around 21% from the corresponding quarter last year. Since the stock offers good investment opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 200," says Hem's research report.


Asit C. Mehta on Texmaco - Target Rs 124

Asit C. Mehta has recommended a buy rating on Texmaco with a target price of Rs 124 in its research report.

"The announcement of a 61% increase in procurement in the Railway Budget for FY10 points to increasing focus on easing infrastructure bottlenecks for the industry. We initiate coverage on Texmaco with a 'BUY' recommendation and a price target of Rs 124 at a target P/E of 14x FY11E. We have not factored in any value from its Delhi land as it has been under litigation for the last many years without result," says Asit C. Mehta's research report.


IIFL on JP Associates -Target Rs 250

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.

Stock views on Oriental Bank of Commerce, Sanghvi Movers, Everonn Systems

Angel Broking on Everonn Systems - Target Rs 242
Angel Broking has recommended a buy rating on Everonn Systems with a price target of Rs 242 in its research report. "Everonn Systems recorded a strong 49.5% yoy growth in its consolidated Revenues in 3QFY2009 to Rs 43.5 cr (Rs 29.1 cr). We expect Everonn to record robust CAGRs of 68% and 61% in Top-line and Bottom-line respectively, over FY2008-10E. Given the company’s strong growth trajectory and the fact that it has consistently out-performed our estimates, apart from its strong positioning to leverage on the significant opportunities for growth prevalent in the Indian Education Sector, we upgrade the stock from Neutral to buy, with a target price of Rs 242, implying a P/E of 11x FY2010E EPS," says Angel Broking's research report


Asit C. Mehta on Sanghvi Movers - Target Rs 84

Asit C. Mehta has maintained its buy rating on Sanghvi Movers with a target of Rs 84 in its research report. "Net Sales increased from Rs 644.0 million in Q3 FY08 to Rs 887.5 million in Q3 FY09, registering Y-o-Y growth of 37.8%. Net profit margin have decreased from 27.6% in Q3 FY08 to 27% in Q3 FY09 despite higher EBIDTA margins due to higher cost of borrowings. We continue to maintain our BUY recommendation and a target price of Rs 84, which is equivalent to a forward P/Bv of 0.8x to its FY10E Book value of Rs 105," says Asit C. Mehta's research report.


Karvy Stock Broking on Oriental Bank of Commerce - Target Rs 213


Karvy Stock Broking has maintained its buy rating on Oriental Bank of Commerce with a target price of Rs 213 in its research report. "In Q3FY09, Oriental Bank of Commerce reported NII growth of 41% (Y/Y) to Rs 5.7 billion compared to our estimates of Rs 5.3 billion; higher than our estimates mainly due higher yield on advances and contained cost of deposits. We decrease our target price by 4.8% to Rs 213 and maintain our BUY rating on the stock with a target price of Rs 213 at 0.8x FY2010 adjusted BV. At current price the stock quotes at 0.49x ABV FY2010,' says Karvy's research report.

Stock views on Glenmark Pharma, Shree Cements, Bharat Electronics

Asit C. Mehta on Bharat Electronics - Target Rs 1037

Asit C. Mehta has initiated a buy rating on Bharat Electronics with a target price of Rs 1037 in its research report. "We have valued the stock using the price to book value multiple. Historically, the stock has traded at a discount of approximately 30% to the price to book value multiple of its foreign peers. This could be mainly due to the large size of its peers. Therefore we have assigned a Price /Book Value multiple of 1.8 (which is consistent with the valuation of its foreign peers) to the FY10 book value of Rs.579.5. We, therefore initiate coverage on Bharat Electronics Ltd with a “BUY” recommendation for a target price of Rs 1037," says Asit C. Mehta's research report.


SKP Securities on Shree Cements - Target Rs 900

SKP Securities has maintained its buy rating on Shree Cements with a target of Rs 900 in its research report. "Net sales were up by 25.6% to Rs 665.4 crores in Q3FY09 over Q3FY08. PAT up by 269% on y-o-y basis at Rs 129.3 crores in Q3FY09. We maintain our BUY recommendation on the stock with a target price of Rs 900 at 8x FY10E earnings in 12 months against the current valuation of 4.5x FY10E earnings," says SKP Securities' research report.


ULJK Securities on Glenmark Pharma - Target Rs 191

ULJK Securities has maintained its buy rating on Glenmark Pharma with a target of Rs 191 in its research report. "Net revenue of Rs 5813.9 million was 39% short of our estimate while EBITDA saw a sharp decline of 47% YoY mainly on account of sharp currency devaluation and delay in US product approvals. We believe that the company’s growth will be hampered because of global slowdown and increasing interest rate scenario. We cut our EPS target for FY10 by 27% and reiterate a Buy with a target price of Rs 191 (from Rs 430)," says ULJK Securities' research report

Stock views on Welspun Gujarat, Sanwaria Agro Oils, Indraprastha Gas, Indian Oil Corporation

KRChoksey on Indraprastha Gas - Target of Rs 130


KRChoksey Research has recommended a buy rating on Indraprastha Gas with a target price of Rs 130 in its November 13, 2008 research report. "IGL reported net sales of Rs 215.2 crore, up 23.6% Y-o-Y, on the back of increase in volume of CNG by 22.7% and PNG by 26.7% to 117.2 million Kg and 13.3 mmscm respectively. We recommended a BUY on the stock with target price of Rs 130, giving an upside potential of 23%. At the target price the stock would be valued at 9.0x and 7.6x its FY09E & FY10E EPS of Rs 14.5 and Rs 17.0 respectively," says KRChoksey's research report.



KRChoksey on Sanwaria Agro Oils - Target of Rs 45


KRChoksey has recommended a buy rating on Sanwaria Agro Oils with a target of Rs 45 in its report. The geographical benefits which the company enjoys on account of all its plants being located in the state of MP (largest producer of soybean seeds) is a key advantage over its peers. Further, SAOL will benefit from setting up of wind turbine generators which will bring down the operating cost and thus enhance margins by 230bps. We expect the profit margins to improve going forward as interest rates cool down."


"At CMP of Rs 32, the stock is trading at 6.4x FY08 earnings of Rs 4.98. We recommend a “BUY” rating on the stock with a price target of Rs 45 based on our P/E valuation, with an upside potential of 41% from current levels. At the target price, the stock would be valued at 6.6x FY09 EPS of 6.8," says KRChoksey's research report



Asit C. Mehta on Welspun Gujarat - Target of Rs 190


Asit C. Mehta has maintained its buy rating on Welspun Gujarat Stahl Roh with a revised target price of Rs 190 in its November 13, 2008 research report. "WGSRL has an order book of USD 2 billion, which provides revenue visibility until FY10. Current orders sufice current capacity. As new capacity becomes operational, the company should attract orders. However, with the current global credit crisis we expect new orders to come in at a slower pace."


"We believe that the company will benefit in the near term on account of the capex it has incurred in the pipes segment. We therefore maintain a positive outlook on the stock and reiterate a “BUY” recommendation with a revised target price of Rs 190, which is equivalent to a P/E multiple of 5 times its FY10E EPS," says Asit C. Mehta's research report.


Indiabulls Securities on IOC - Target of Rs 479


Indiabulls Securities Research has upgraded its rating on Indian Oil Corporation (IOC) to buy with a target price of Rs 479 in its November 26, 2008 research report. "With global oil prices at their peak in Q2’09, Indian Oil Corporation Limited (IOC) reported a net loss of Rs 70.5 billion as it was unable to pass the full effect of the price increase because of government controls. We have revised our estimates to incorporate the effect of the recent fall in the crude prices and the depreciating rupee. Based on our relative valuation, we have arrived at a target price of Rs 479, which provides an upside potential of 17%. Thus, we have upgraded our rating on the stock to Buy," says Indiabulls Securities' research report.

Stock Views on Tech Mahindra, Tata Steel, Reliance Industries, Jindal Saw

Emkay Global on Tech Mahindra - Target Rs 320

Emkay Global Financial Services has maintained its buy rating on Tech Mahindra with a target of Rs 320 in its December 3, 2008 research report. "We revise our estimates for currency assumptions (we base H2FY09 estimates at GBP/USD of 1.5 and 1.4 for FY10/FY11, USD/INR at Rs 47/USD and Rs 46/USD for H2FY09/FY10 and FY11 respectively). We note that Tech M’s estimated volume growth could all be nullified on account of currency alone during FY10."

"We expect TechM to report earnings of Rs 60.9 and Rs 66.7 in FY10 and FY11 respectively. Despite expecting 14% decline in earnings during FY10, we believe that inexpensive valuations limit any significant downside from current levels. We maintain BUY with a revised target price of Rs 320, based on 6x adjusted FY10 earnings of Rs 53.4," says Emkay Global Financial Services' research report.


Motilal Oswal on Tata Steel - Target of Rs 361


Motilal Oswal has maintained its buy rating on Tata Steel with a target of Rs 361 in its December 3, 2008 research report. "Consolidated 2QFY09 adjusted PAT increased 256% YoY to Rs 51.7 billion v/s estimate of Rs 27.2 billion. Reported PAT of Rs 47 billion includes forex loss of Rs 4 billion. Net sales increased 36% YoY to Rs 442 billion driven largely by price increase. Tata Steel will continue to pursue its expansions at Jamshedpur and Orissa because these are high return projects. The stock trades at P/E of 1.9x FY10E and EV/EBITDA of 3.7x FY10E. Maintain Buy, target of Rs 361," says Motilal Oswal's research report.


Angel on Reliance Industries - Target Rs 1880


Angel Broking has maintained its buy rating on Reliance Industries with a target price of Rs 1880 in its December 5, 2008 research report. "The government has asked Reliance Industries (RIL) to supply natural gas from the company's eastern offshore D6 fields to the beleaguered Dabhol power plant, a segment that gets top preference for gas allocation along with fertiliser units. A Petroleum Ministry statement said that gas to the Ratnagiri Gas and Power (Dabhol) plant would be within the overall allocation of 18 mmscmd for the Power Sector, while detailing customers for the initial 40 million standard cubic meters per day of gas to be produced from Krishna Godavari basin D6 field."

"It has been decided that RGPPL be supplied 1.4 mmscmd during January to March 2009 and 2.7 mmscmd during April to September 2009, subject to commencement of production, within the overall allocation of power sector (18 mmscmd). Regarding pricing, it has been decided that D6 gas would be sold to all customers at the rate of $4.2 per million British thermal unit (mmBtu) if crude oil price averaged greater or equal to $60 per barrel in the year preceding the sale. As per the gas utilisation policy approved by the Empowered Group of Ministers (EGoM), Reliance is to first supply gas to existing gas-based urea plants and then give 3 mmscmd to LPG plants. Thereafter, up to 18 mmscmd of gas was to be given to gas-based power plants that were lying idle/under-utilised or likely to be commissioned during 2008-09. We maintain a Buy on RIL, with a target price of Rs 1,880," Angel's research report.


Asit C. Mehta on Jindal Saw - Target of Rs 530


Asit C. Mehta has maintained its buy rating on Jindal Saw with a revised target price of Rs 530 in its October 29, 2008 research report. "In Q3CY08, JSL’s sales increased to Rs 14,855.3 million. from Rs 14,286.1 million in Q3CY07. Sales growth was low at 4%, as JSL sold its US operations in 2007, which contributed 30% to sales in Q3 CY2007. We believe that the company will benefit in the near term on account of the capex incurred in the pipes segment. We therefore maintain positive outlook on the stock and reiterate a “BUY” recommendation with a revised target price of Rs 530, which is equivalent to a P/E multiple of 7 times to its FY10E EPS," says Asit C. Mehta's research report.

Stock Views on Rallis India, Orchid Chemicals, Welspun Gujarat

Emkay Global on Rallis India - Target of Rs 518

Emkay Global Financial Services has recommended a buy rating on Rallis India with a target of Rs 518 in its November 12, 2008 research report. "The company has shown a consistent growth in the past with improvement in the EBITDA margins, increased number of new launches, improving operational efficiency and increased thrust on exports. We believe that EBITDA margins of 15.5% will be sustainable in future with less pressure from raw material cost due to overall fall in the commodity prices."

"We expect EPS of Rs 52 and Rs 64.8 for FY09E and FY10E. The company also has ‘hidden assets’ like excess land bank and a minority stake in Advinus, one of the finest pharma research organizations in India. Based on this, we are revising our price target to Rs 518 (from Rs 550 earlier) which is 8XFY10E earnings with a BUY rating," says Emkay Global Financial Services' research report.

Reliance Money on Orchid Chemicals - Target of Rs 176

Reliance Money has recommended a buy rating on Orchid Chemicals and Pharmaceuticals with a target of Rs 176 in its November 14, 2008 research report. "Orchid Chemicals & Pharmaceuticals Ltd (Orchid) reported 19% growth in consolidated revenues on a higher base to Rs 3484.5 million during Q2FY09. As per revised estimates, we expect the Revenue and profit (excluding forex loss) would grow at a CAGR of 15% and 16%, respectively during FY08-10E. Thus, the revised EPS (excluding forex loss) stands at Rs 14 and Rs 22.9 for FY09E and FY10E, respectively."

"But the positive part of Orchid is that FCCBs have sufficient time horizon for conversion and the company does not hedge its revenues, which could benefit the company from the weakening Rupee scenario in the near term. In line with our changed estimate based on consolidated numbers and in order to align our valuation with market valuation, we are revising our target price. In fact, to capture the market wide correction in valuations, we have reduced the earning multiple by 35% and revise target price to Rs 176 (i.e. 8x FY10E EPS),Buy," says Reliance Money's research report.

Asit C. Mehta on Welspun Gujarat - Target of Rs 190

Asit C. Mehta has maintained its buy rating on Welspun Gujarat Stahl Roh with a revised target price of Rs 190 in its November 13, 2008 research report. "WGSRL has an order book of USD 2 billion, which provides revenue visibility until FY10. Current orders sufice current capacity. As new capacity becomes operational, the company should attract orders. However, with the current global credit crisis we expect new orders to come in at a slower pace."

"We believe that the company will benefit in the near term on account of the capex it has incurred in the pipes segment. We therefore maintain a positive outlook on the stock and reiterate a “BUY” recommendation with a revised target price of Rs 190, which is equivalent to a P/E multiple of 5 times its FY10E EPS," says Asit C. Mehta's research report.

Srock Views on ABG Shipyard, Bombay Rayon

Asit C. Mehta on ABG Shipyard - Target Rs 365

Asit C. Mehta has recommended a buy rating on ABG Shipyard, with a price target of Rs 365, in its report dated 30 September, 2008.

"Considering the opportunities in the offshore E&P, ABG’s current order book and expansion plans, we expect its sales (excluding subsidy) to grow at a CAGR of 50% and PAT to grow at a CAGR of 38 % from FY08 to FY10E. At the CMP of Rs 299, ABG is trading at 12.6x its FY09E EPS (excluding subsidy) and 7.4x its FY10E EPS (excluding subsidy). We initiate coverage on ABG Shipyard Limited with BUY recommendation and a target price of Rs 365, which is equivalent to a forward P/E of 9x to its FY10E EPS of Rs 40.6 (excluding subsidy)," says Asit C. Mehta's report.

Motilal Oswal on Bombay Rayon - Target Rs 566

Motilal Oswal has maintained its buy rating on Bombay Rayon Fashions with a target of Rs 566 in its September 22, 2008 research report. "We continue to value Bombay Rayon’s manufacturing operations at 12x FY10E EPS of Rs 37 to arrive at a value of Rs 444. We value the GURU retailing business based on DCF at Rs 122 per share. The SOTP target price for Bombay Rayon works out to Rs 566, and offers 68% upside from current levels. We maintain Buy," says Motilal Oswal's research report.

Stock view on Aban Offshore, Tata Chemicals, Axis Bank

Asit C. Mehta on Aban Offshore - Target of Rs 2932

Asit C. Mehta has recommended a buy rating on Aban Offshore (AOL) with a target of Rs 2932 in its September 23, 2008 research report. "We expect AOL’s sales to grow at a CAGR of 58% and PAT to grow at a CAGR of 294% from FY08 to FY10E. Addition of new rigs and renewal of contracts is expected to lead AOL’s growth in FY09E and FY10E. At the CMP of Rs 2380, AOL is trading at 7.9x its FY09E EPS and 4.9x its FY10E EPS. Considering average P/E multiple of 6.4x for the international players, we recommend Buy on “Aban Offshore Ltd.” for a target price of Rs 2932, which is equivalent to a forward P/E multiple of 6x to AOL’s FY10E EPS of Rs 488.7," says Asit C. Mehta's research report.

Karvy Stock Broking on Tata Chemicals - Target of Rs 441

Karvy Stock Broking has maintained its buy rating on Tata Chemicals with a target of Rs 441 in its September 23, 2008 research report. "The consolidated net sales and net profit of Tata Chemicals is expected to grow at CAGR of 29.4% and 37.4% during FY08-10E on the back of organic growth as well as inorganic growth. At the current market price of Rs 272 the stock is trading at 10.7xFY09E and 7.3xFY10E expected earnings. Hence, we maintain our target price of Rs 441 and rate the stock as a BUY.," says Karvy Stock Broking's research report

Anand Rathi Securities on Axis Bank - Target of Rs 790

Anand Rathi Securities has recommended a buy rating on Axis Bank with a stoploss of Rs 675 and with a target of Rs 790. "We suggest buying this stock at around current price with a Stop Loss of Rs 675 with the target of Rs 790. Accumulate more if it comes close to the support level. If it moves above Rs 790 level then it can even touch Rs 840 Levels," says Anand Rathi's research report.