Stock views on Prakash Industries, Bajaj Hindusthan, DLF

Motilal Oswal on Prakash Industries - Target Rs 285

Motilal Oswal has recommended buy rating on Prakash Industries with a price target of Rs 285 in its report.

"The company will spend Rs 33 billion over five years to nearly double its crude steel production, expand its sponge iron capacity to capitalize on iron ore integration and put up a 625MW power plant. The company's steel making capacity will increase from 550,000tpa to 1mtpa by March 2012 and its sponge iron capacity will increase from 400,000tpa to 1mtpa. Prakash Industries is extracting nearly 1mtpa of coal from the Chotia mine to feed its 100MW CPP and sponge iron kilns. Over FY09-12, we expect EBITDA to grow at 39% CAGR to Rs 7.9 bn due to raw material integration. We expect PAT growth of 40% CAGR to Rs 5.6 billion. Our target price is Rs 285 (30% upside) based on 5.5x FY12E EV/EBITDA. We initiate coverage with a Buy recommendation, says Motilal Oswal research report.

Prabhudas Lilladher on Bajaj Hindusthan - Target Rs 226

Prabhudas Lilladher has come out with a research report on Bajaj Hindusthan. The research firm has maintained accumulate rating on the stock with a target price of Rs 226.

"Bajaj Hindusthan (BJH) has started the civil work for 400MW power plant. BJH expects it to commission the plant by end of August’11. The company is expected to sale 80% of power to state government and rest on merchant trade basis. The company has applied with Government of India for coal linkage. The company is also doing due diligence for coal mine (potential reserves of 750m Tonnes) in South Africa", according to Prabhudas Lilladher.

The report also says, "With buffer stock of the government getting reduced, 3.5m tonnes out of approximately 7m tonnes for the whole year are yet to be imported. Hence, the tight demand-supply condition is expected to continue in FY10. At CMP, the stock trades at 8.7x FY10E and 20.7x FY11E. We maintain accumulate rating on the stock."


IndiaInfoline on DLF - Target Rs 415

IndiaInfoline research is bullish on DLF and has recommended buy rating on the stock with a target of Rs 415, in its research report.

"DLF has been consolidating from last week of October 2009 between the range of Rs 395-340. On Friday, the stock attempted to break past the top-end of the consolidation phase. The move was supported by strong volumes and against a weak trend in the broader indices. On observation of the daily chart we can visualize that the stock is yet to break out of the consolidation phase. DLF is now believed to be very close to an upside breakout, a development that should lead to a rapid advance towards the levels of Rs 415-430. We recommend traders to buy the stock between the levels of Rs 387-393 with a stop loss of Rs 378 for a target of Rs 415."

Stock views on Upper Ganges Sugar, Bajaj Hindusthan, Repro India

Fairwealth Securities on Upper Ganges Sugar - Target Rs 150

Fairwealth Securities has recommended buy rating on Upper Ganges Sugar with a target of Rs 150 in twelve month perspective, in its research report.

“Sector:
a) Prices at 25 cents/pound are ruling at 28 year high up by more than 80% this year but lower than their all time high of 66 cents/pounds.
b) Sugar is only commodity which is a combination of 3 in 1 industry, namely FMCG, Power and Chemical.
c) Supply is diminishing due to draught and wrong government policies in India. Demand supply mismatch stands at record high 7-10 million tonne per year.
d) Regular increase in demand year after year thereby putting a pressure on supply, resulting in adjustment of sugar prices.
e) Little scope for increasing supplies in next one year. “

“Upper Ganges Sugar & Industries growing with vision under the leadership of KK Birla Group Company, the business possesses huge management expertise. Major expansions already done to take benefit of the current bull run. Strong vision for the future. Company’s gross revenue on TTM basis grew by 40 % to Rs 479 crore in Q2FY10 as against Rs 341 crore previous year (Q2FY09). Company reported PAT of Rs 12.55 crore on TTM basis (Q2FY10) as against the loss of Rs 3.48 crore previous year (Q2FY09). Long term investors can buy above closing of 95 with a target of Rs 150," says Fairwealth Securities research report.


Karvy Stock Broking on Bajaj Hindusthan - Target Rs 252

Karvy Stock Broking has recommended outperformer rating on Bajaj Hindusthan with a target of Rs 252, in its research report.

"For full year ended on September 2009, Bajaj Hindusthan, BHL (Consolidated) reported revenue decline of 2.1% to Rs 20.25 bn mainly due to ~19% decline in sugar sales to 0.81 mn mt during the year. The average realization improved by ~22% to Rs 21 per kg in FY09. The company reported loss of Rs 82.2 mn in FY09 as compared to loss of Rs 301 mn in FY08."
"For FY10 estimates, we have revised cane cost upward by 15.6% to Rs 2,142 per mt considering increase in sugar prices and shortage of sugar cane. We have maintained our sugar sales volume estimates to 1.24 mn mt. We have changed our average sugar realization estimates upward by 6.5% to Rs 31.4 per Kg. We have revised revenue estimates by 4.5% to Rs 42.74 bn and expect the company to report profit of Rs 3.47 bn (previous Rs 3.69 bn) in FY10. The book value has been revised from Rs 264 to Rs 288 per share considering issue of 35.4 mn shares at premium of Rs 203 in July 2009. We maintain our valuation based on average of 2xBV and 11xFY10 earnings. We have revised valuation from Rs 246 to Rs 252 per share and maintain Outperformer rating," says Karvy Stock Broking research report.

Sushil Finance on Repro India - Target Rs 146

Sushil Finance is bullish on Repro India and has recommended buy rating on the stock with a target of Rs 146, in its research report.

“Repro India is an integrated print service solution provider. It prints Educational Books, Children’s Books, Catalogues & Magazines and Annual Reports. The company’s print services ranges from creative & designing, sourcing & procurement, printing & production, warehousing, assembly & dispatch to customer promotions. Repro has already built up overseas presence & Exports about 55% of its revenues. They have relationship based businesses with large publishers in UK, USA and Africa.”

“Given its strong positioning in the value added print segment, effective marketing network, efficient operations, consistently improving performance & ensuing growth from the expansion over the next 2-3 years, we expect Repro to post an APAT growth of 19% in FY10 & 25% in FY11. At the CMP, the stock trades at an attractive valuation of 4x its FY11E earnings & P/BV of 0.7x FY11E,” says Sushil Finance research report.

Stock Views on Bajaj Hindusthan, IFCI, Sterlite Industries, ABB

ICICI Direct on Bajaj Hindusthan - Target of Rs 188

ICICIdirect.com has come out with its report on Bajaj Hindusthan. According to the research firm Bajaj Hindusthan has an upside potential of 10%."Bajaj Hindusthan, the largest sugar producer in the country would benefit from the rising sugar prices. The Supreme Court judgment on sugarcane pricing at Rs 110/ quintal would also benefit the UP-based sugar producers. Bajaj Hindustan, having the largest ethanol/alcohol capacity of 800 kilo litre per day (KLPD), would benefit the most from the rising prices of rectified sprits, which have risen to Rs 26/litre."

"We believe rising sugar prices, in anticipation of lower production in SY09 would benefit the company, since it is the largest sugar producing company. At the current price, it is trading at SY08E EPS of Rs 5.0 at 34.6x and SY09 EPS of Rs 14.6 at 11.8x. Bajaj Hindusthan has an upside potential of 10% with a target of Rs 188 in one month perspective."

ICICI Direct on Buy IFCI above Rs 48.35 Target 52

ICICIdirect.com has recommended to buy IFCI above Rs 48.35 with a stoploss of Rs 48 and target of Rs 49/52/higher.

Emkay Global on Sterlite Industries - Buy Target of Rs 953

Emkay Global Financial Services has maintained its buy rating on Sterlite Industries (India) with a target of Rs 953 in its September 10, 2008 research report. "We believe the current prices more than factor the downturn in the zinc cycle and ignore the volume growth in Hindustan Zinc. Further, there is a possibility of ASARCO being acquired by Sterlite as early as Dec 2008, which might result in additional value creation for shareholders of Sterlite Industries. We maintain BUY on Sterlite with a target price of Rs 953 considering the restructuring to be value neutral for Sterlite Industries," says Emkay Global's research report.

HDFC Securities on ABB - Resistance at Rs 1180

HDFC Securities has come out with its report on ABB. According to the research firm ABB has support of Rs 766 and resistance at Rs 1180 with 3 months perspective, in its September 11, 2008 report. “ABB possesses a very unique business model due to which it is in a better position even in this sluggish economic scenario. The slowdown in order inflows and longer lead-time of certain large size orders could be a revenue dragger in the short term. But, huge investments in the power and infrastructure sector could provide a cushion for ABB to bag some orders. Moreover, it possesses astrong Balance Sheet with a good working capital cycle as compared to its peers and sufficient free cash reserves could always help ABB in difficult times. ABB being a technologically advanced company has always commanded premium valuations even in worsesituations. It is currently quoting at a P/E of 31.5 times its CY08 (E) earnings," says HDFC Securities.