Stock views on Aventis Pharma, Indraprastha Gas, Alstom Projects

Karvy Stock Broking on Aventis Pharma - Target Rs 1770

Karvy Stock Broking has recommended outperformer rating on Aventis Pharma with a target of Rs 1770, in its research report.

“Aventis Pharma’s domestic formulations business (ex- Rabipur) has been growing by 14 % plus for the nine month period while exports has had a blip in the last quarter. We maintain our earnings but upgrade our multiple on account of current re- rating in the sector from 16.5x to 17x and value our core price target at Rs 1427 and add cash per share of Rs 342 per share and arrive at a price target of Rs 1770. On account of the upgrade in price target by 2.5 % we upgrade our rating in the stock to Outperformer, says Karvy Stock Broking research report.


IndiaInfoline on Indraprastha Gas - Target Rs 203

IndiaInfoline is bullish on Indraprastha Gas and has recommended buy rating on the stock with a target of Rs 203, in its research report.

"Indraprastha Gas has seen impressive volume in yesterday’s trading session and appears to have taken support between Rs 175-177 range. It could bounce till somewhere between Rs198-200 levels in the near term. The bullish formation is confirmed after the stock gave a close above its short-term moving averages with positive divergences in momentum oscillators. Any move above Rs190 could take the stock towards Rs 200 and higher in the short-term. Traders are advised to maintain a stop loss of Rs181 and go long. Book partial profit around Rs198 and exit around the levels of Rs 203, says IndiaInfoline research report.

IndiaInfoline on Alstom Projects - Target Rs 610

IndiaInfoline is bullish on Alstom Projects and has recommended buy rating on the stock with a target of Rs 610, in its research report.

"Alstom Projects (APIL) has displayed strength in last few trading sessions prior to Friday, trading in a narrow range amid volatility in the market. The stock had been consolidating in a range between the levels of Rs 521-560 from last four weeks. On Friday, the stock broke-out from the upper-end of this trading range. Moreover, on the daily chart, the stock has formed a Bullish Candlestick suggesting upside from the current levels. The daily RSI is already in strong buy mode. The stock has closed above all its key daily moving averages. A move past the levels of Rs 580-585 could take the stock towards the levels of Rs 605-610 in the short-term. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock between the range of Rs 571-581 with a stop loss of Rs 561 for a target of Rs 610," says IndiaInfoline research report.

Stock views on Corporation Bank, Orchid Chemicals, Aventis Pharma

Sunidhi Securities on Corporation Bank - Target Rs 195

Sunidhi Securities & Finance has recommended a buy rating on Corporation Bank with a target price of Rs 195 in its research report. "During Q3FY09, total income has gone up by 50 per cent to Rs 1906 crore whereas net profit has gone up 34 per cent to Rs 256 crore. Net margin however, declined form 15% to 12.7%. During the nine months ended December 2008, net profit surged 19% to Rs 632 crore. NP margin stood at 12.7% against 14% in the previous nine months ended December 2007. At CMP, the share is trading at a P/BV of 0.5 (FY09), P/E of 2.8x on FY09E and 2.5x on FY10E. We recommend BUY on the stock with a price target of Rs 195 in the medium term," says Sunidhi Securities & Finance's research report.


Angel Broking on Orchid Chemicals - Target Rs 128

Angel Broking has maintained its buy rating on Orchid Chemicals and Pharmaceuticals with a target price of Rs 128 in its research report. "Orchid Chemicals & Pharmaceuticals (Orchid) will raise overseas debt to retire the USD 175 million (Rs 858 crore) foreign currency convertible bonds (FCCBs). A resolution passed by the company’s Board recently allowed it to raise up to Rs 1,500 crore, for which shareholder approval is expected to be sought soon."


"The company’s FCCBs are currently being traded at a significant discount and are set to mature in February 2012 at a strike price of Rs348 for conversion to Equity. The current yield-to-maturity is 7.25%. This move takes advantage of the recent liberalised norms that permit companies to use proceeds from overseas debt to retire FCCBs. The company did not confirm about the price at which the bonds would be bought back. We maintain a Buy on the stock, with a target price of Rs 128," says Angel's research report.


Angel Broking on Aventis Pharma - Target Rs 1,027

Angel Broking has maintained its buy rating on Aventis Pharma with a revised target price of Rs 1,027 in its research report. "For 4QCY2008, the company posted net sales of Rs 269.9 crore registering a yoy growth of 32.3% on the back of strong traction in both the domestic and export segments. Robust growth in sales, rise in OPM and higher other income led to 67.8% increase in Net Profit to Rs 45.3 crore during the quarter. For CY2008, the company posted 15.1% yoy growth in Net Profit to Rs 166.2 crore on the back of Sales growth. We maintain a Buy on the stock, with a revised target price of Rs 1,027," says Angel Broking's research report.

How should retail investors approach the market? - Part I

Religare Securities

RECOMMENDATIONS HDIL, Chennai Petroleum, SBI, L&T and Thermax

Small retail investors should analyse their portfolios closely. They should put their money in companies that satisfy three of the following four conditions - companies with positive free cash flows, good operating cash flows, low debt-equity ratio or high dividend yield

RECOMMENDATIONS Tata Steel, Castrol, Bayer Cropscience, Aventis Pharma, Nestle and HLL

Networth Stock Brocking

We’re taking a contrarian call on commodity stocks now. The global base metals index has been trading 5-7% over the past few trading sessions. From what we see, there could be a bounceback in commodities. Our advice to investors is to buy steel, metals and mining stocks. On pure fundamental basis, certain MNC stocks are good buys in these times. Companies like Castrol or Bayer Cropscience have good operating cashflows and very less of debt on the their balance sheets.”

Angel Broking

RECOMMENDATIONS Axis Bank, HDFC Bank, Bharti Airtel, Infosys and Satyam.

Investors should keep investing in markets in small lots. We like banking stocks, especially after the recent rate cuts.

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.