Stock views on Clutch Auto, Time Technoplast, Sahyadri Industries

Bonanza on Clutch Auto - Target Rs 50

Bonanza research is bullish on Clutch Auto and has recommended buy rating on the stock with a target of Rs 50, in its research report.

"Clutch Auto (CAL) is a leading Clutch & Related components maker in India. It is likely to report an EPS of Rs.5 in FY2010. At CMP, it trades at 8 PE on FY 10 estimates. On Cash EPS basis, it trades at 3.4 Cash PE on FY10 estimated Cash EPS of Rs.12/Share. Also the scrip is at steep discount to its FY 2009 Book value of Rs. 86/Share. Investors may BUY in Rs 38-40 range for a target of Rs 50 i.e. about 10 times its FY 2010 estimated EPS," says Bonanza research report.

Investment Rationale
· The replacement market is the most important segment, accounting for 47% of the sales. CAL has vast marketing pan India network of 37 marketing offices in 20 major cities.
· The Indian automobile industry is on fast revival after tough period in later half of FY09. With confidence returning in economy, CV and Capital goods sales are witnessing upward trend after almost 2 years of slow down. · Growth in Auto Industry directly benefits the Ancillary industry.
· All the major customers of CAL are witnessing strong sales growth

Hem Securities on Time Technoplast - Target Rs 70

Hem Securities is bullish on Time Technoplast's and has recommended buy rating on the stock with a target of Rs 70, in its research report.

"Time Technoplast's sound business profile is driven by technology focus, diversified product portfolio, diversified customer base and increasing scales of economies. The Company's international presence through its operations in Poland , Sharjah , Bahrain and Thailand has enabled it to de-risk the markets and its businesses. The company has reported great results for Q2FY10. The global slowdown of the economy affected export sectors the most. Fortunately, TTL does not have any dependence on exports as well. The company is running at a P/E multiple of 11.92x with an EPS of Rs.4.11 (TTM). We are positive on the company’s outlook and we recommend BUY on stock with a medium term price target of Rs 70," says Hem Securities research report.

Sunidhi Securities & Finance on Sahyadri Industries - Target Rs 125

Sunidhi Securities & Finance has recommended buy rating on Sahyadri Industries with a target of Rs 125, in its research report.

“Sahyadri Industries, (SIL) has further planned to invest in additional six wind mill, two in the state of TamilNadu and four in Rajasthan. The wind power generation in TN will be consumed by SIL’s sheet manufacturing plant at Perundurai and power generation in Rajasthan will be sold to State Utility. In the process of wind power generation, SIL also generates carbon emission reduction which may be negotiated for price in international market under Clean Development Mechanism, subject to completing formalities and obtaining certificate of carbon emission reduction as per Kyoto Protocol.”

He further added, “SIL is likely to post an EPS of Rs 33 in FY10, which would further go up to Rs 38 in FY11. At CMP, the share is trading at a P/E of 2.8x on FY10E and 2.4x on FY11E. SIL has been forming higher highs and higher lows. However, RSI indicator (in the lower window) has failed to make higher highs. The support levels are around Rs 90 and thereafter at Rs 85. The resistance on the upside is at Rs 105. A breach of this level should take the stock price to Rs130. We recommend BUY with a target of Rs 125,” says Sunidhi Securities & Finance research report.

Stock views on Indraprastha Gas, Geodesic, Gujarat Industries Power

RR Financial on GIPCL - Target Rs 160

RR Financial Consultants is bullish on Gujarat Industries Power, GIPCL and has recommended buy rating on the stock with a target of Rs 160, in its research report.

"At the current market price Gujarat Industries Power Co is trading at discount of 2011E PE multiple. We recommend BUY rating on the stock with a target price of Rs 160 (32% upside) in 12 month with DCF valuation .The mid cap stock had performed very well for the past one month . We remain positive on the domestic Power industry as we expect it to grow in line with the country’s GDP growth. India’s peak power demand in excess of 11%, gives substantial opportunity to players like GIPCL. The company’s expansion plans are also on track, which we believe will help it continue on growth path ahead. The Gujarat Industries Power Company Ltd has the advantage of the backing of the Govt. of Gujarat (GOG) while at the same time full functional freedom is given to it.," says Bonanza research report.


Bonanza on Geodesic - Target Rs 130

Bonanza research has recommended accumulate rating on Geodesic with a target of Rs 130, in its research report.

"Geodesic Ltd has a niche product line. The company has reported near 100% CAGR in top line and bottom-lines over the past five years. The company has increased its top line by acquiring companies and increasing its portfolio of products. It has also ear marked FCCB funds for more such acquisition abroad that would further fuel its top line and bottom-line. The company has announced that it would soon acquire a social networking company and the deal is in finalization stage. Company is also planning to set up a small facility for manufacturing Simputer in Roorkee. Company has worked on many e-governance pilot projects and hopes to bag orders from the government for the same. Company has been focusing on developing economies such as China and Latin America as new target markets with good growth potential. Company also plans to increase the dividend payout in the coming years."

"However, the company management has stated that pricing pressure for its products exists. We have estimated that company would report a growth of nearly 11% in its top line but pricing would continue to drag the bottom line for FY10. We expect the company to report growth in bottom-line FY11, fueled by new product launch and additional acquisitions. At current market price of Rs95 the company is trading at a forward earning multiple of 4.17x for Consolidated EPS of 22.79 in FY10. We recommend investors to accumulate the stock at Rs 100 for a target of Rs 130 in twelve months time. However, due to market volatility a downside of 10-15% cannot be ruled out from the recommended range," says Bonanza research report.

Hem Securities on Indraprastha Gas - Target Rs 240

Hem Securities has recommended buy rating on Indraprastha Gas with a target of Rs 240, in its research report.

“With forthcoming Commonwealth Games 2010 and ambitious plan to expand company’s CNG Station coverage, greater focus by Delhi Government on reduction of pollution, robust capex plans through internal accruals and business opportunities from business expansion in NCT and CGD operations will drive the growth momentum in coming future. Further, the compnay expects to touch turnover of Rs.1250- Rs.1300 crores in the coming year. In wake of such growth, Indraprastha Gas Ltd. seems to be extremely attractive investment opportunity.”

“Presently, Indraprastha Gas is trading at Rs 183 which is at 14.85 times to its earnings and 3.75 times to its book value of Rs 48.82. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 240 in medium to long term investment horizon expecting an appreciation of about 31% from the current level of Rs 183,”says Hem Securities research report.

Stock views on NHPC, Jagran Prakashan, Reliance Infrastructure

IndiaInfoline on Reliance Infra - Target Rs 1160

IndiaInfoline has recommended buy rating on Reliance Infrastructure with a target of Rs 1160, in its research report.

Reliance Infra is trading 28% lower than its 52-week high of Rs1,404 in October 2009, but higher than its low of Rs45 in March 2009. A detailed study of Reliance Infra shows a distinctive pattern emerging which signals a temporary bottom. The stock has broken out (as seen in the daily chart) from the overall base-like pattern carved during the past five-weeks. In fact, the last couple of trading weeks represents a high level bullish congestion area between Rs 1,092-1,056. We believe that the current bullish consolidation is likely to lead to a potential upside, once the 50-DMA is broken. We recommend traders to buy the stock in the range of Rs 1,095-1,110 for a target of Rs 1,160. We advise traders to maintain a stop loss of Rs 1,080," says IndiaInfoline research report.


Bonanza on Jagran Prakashan - Target Rs 140

Bonanza research is bullish Jagran Prakashan and has recommended buy rating on the stock with a target of Rs 140, in its research report.

"Jagran Prakashan is among the largest print media houses in India. Its flagship brand Dainik Jagran is the largest circulation newspaper in India. The scrip is at discount to the recently concluded IPO of peer DB Corp. It is likely to show an EPS of Rs.7/Share in FY10. At CMP Rs.126/Share, it trades at 17 PE on FY10 estimates. Investors may BUY in Rs.120-122 range for a target of Rs 140 i.e. 20 PE on FY10 estimates."


Bonanza research on NHPC - Target Rs 38.

“NHPC is India’s largest Hydro Power Company. It is adding capacities at regular intervals. If Government allows it to sell power on merchant basis, its earnings can grow substantially. In the present scenario, we expect NHPC to report a consolidated EPS of Rs 1.2 per share. Its consolidated Cash EPS is likely to be Rs 2 per share. At CMP, it trades at PE of 17.8 and Cash PE of 14. The scrip had fallen sharply from its issue price of Rs 36. Share may face stiff resistance at Rs 36. The scrip is expected to appreciate steadily over a period. Long term investors may buy around current levels, for a mid term target of Rs 38.”