Stock views on South Indian Bank, Dabur India, Bank Of Baroda

ULJK Securities on Bank Of Baroda - Target of Rs 384


ULJK Securities has recommended a buy rating on Bank Of Baroda with a target price of Rs 384 in its research report.

"Bank of Baroda has posted a positive improvement in its return ratios driven by robust growth in the top line particularly non interest income. Asset quality of the bank also improved and the Gross NPA level now stands at 1.5%. Improvement in ROA will lead to an improvement in ROE, which we believe result in re rating for the stock. Looking at its sustainable growth prospect and attractive valuation, We recommend “BUY” on the stock with a target price of Rs 384 for a medium to long term horizon," says ULJK Securities' research report.


Bonanza on South Indian Bank - Target of Rs 55


Bonanza has recommended a buy rating on South Indian Bank with a price target of Rs 55 in its research report.

"South Indian bank is mid-sized private sector bank. It serves niche market of NRIs and their families in India. SIB is growing at brisk pace. The bank has shown decent performance. Its profits have grown very well, from Rs 8.7 crore in FY 2005 to Rs 153.39 crore in FY 2008, a growth of 260% compounded. It has also shown very good improvement in Assets quality. Its Net NPA stand at 0.4% presently, down from 3.81% in FY 2005.It is likely to report an EPS of Rs 16.8 in FY 09. Investors can buy at CMP Rs 46 for a target of Rs 55 i.e. PE of 3.3," says Bonanza's research report.


IIFL on Dabur India - Target of Rs 111


IIFL has maintained its buy rating on Dabur India with target price of Rs 111 in its research report.

"Dabur has put its beauty and wellness retail venture ‘new-u’ on the block. The company has mandated Grant Thornton to find a buyer for the retail chain. We had anticipated this move by the management, given the poor response to the chain, weak positioning and the overall operating environment, which has turned extremely tough for retailers. This is a move in the right direction, though finding a buyer may not be easy in the current environment. Retail losses will no longer be a drag on overall profitability. Accumulated losses on the venture add up to Rs 220 million over an investment of Rs 416 million over the past two years. We reiterate 'BUY' with target price of Rs 111," says IIFL's research report.

Stock views on Dabur India, BEML, Lloyd Electric

KRChoksey on BEML - Target Rs 426

KRChoksey Research has maintained its buy rating on BEML with a target price of Rs 426 in its research report. "Net Sales of the company increased marginally by 1.7% (YoY) to Rs 632.9 crore due to slowdown in economy. On back of diversified business model, rich cash reserves (Rs 125.1 per share), healthy order book, railway business initiatives, we maintain our BUY rating on the stock, target of Rs 426," says KRChoksey's research report

IIFL on Dabur India - Target Rs 111

IIFL has upgraded its rating on Dabur India to buy with a target price of Rs 111 in its research report. "Dabur’s steady volume growth in recent quarters is particularly important in an environment of increasingly constrained pricing power. Dabur took minimal price hikes in 2008 (4-5%) and is not encumbered by categories with stagnant/declining volumes. As such, there is no pressure to take price cuts. The company’s domestic volumes have grown 8-11% YoY in each of the last eight quarters. Issues in underperforming businesses such as hair-oil and toothpastes have been addressed, and the effects are already visible in hair oils."

"An expanding international business footprint and the integration of Fem Care from the next fiscal will lend further support to Dabur’s growth momentum. With softening input prices and a pull-back in retail rollout plans, margins will get a respite even as ad spends may be marginally scaled up. Dabur has underperformed its HPC peers by 35% over the last one year on concerns that we see abating. We upgrade the stock to BUY from REDUCE with a target price of Rs 111 based on one-year forward earnings," says IIFL's research report

Angel Broking on Lloyd Electric - Target Rs 40

Angel Broking has recommended a buy rating on Lloyd Electric, with price target of Rs 40, in its report. "Lloyd Electric (Lloyd) reported 35.6% yoy decline in Top-line to Rs 102.2 cr (Rs 158.7 cr) in 3QFY2009 primarily due to lower Sales volume owing to sluggish demand for white goods. For 3QFY2009 Net Profits declined by a substantial 85.3% to Rs 2.1 cr (Rs 14.4 cr) primarily due to fall in Top-line and pressure on OPMs. The company enjoys excellent positioning in the Indian AC market and we believe that the stock has limited down side from current levels. We maintain a Buy on the stock, with a revised Target Price of Rs 40 (Rs 61)," says Angel Broking's report.

Stock Views on Patni Computer Systems, KS Oils, Bharti Airtel, Dabur India,

Buy Patni Computer Systems, tgt Rs 142: Indiabulls Sec

Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142 in its November 25, 2008 research report. "Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2’09, helped by the sharp depreciation of the rupee. respectively. The stock trades at a heavy discount to the industry average multiple of 7.9x and 7.2x for CY08 and CY09, respectively. Besides, based on our DCF valuation, we have arrived at a target price of Rs. 142, assuming an 8% Rf, a 5% terminal growth rate, and a 13.1% WACC. Our target price provides an upside of 20.3% over the current levels; thus, we upgrade our rating to Buy," says Indiabulls Securities' research report.

KS Oils - Target of Rs 52

Angel Broking has maintained its buy rating on KS Oils with a revised target price of Rs 52 in its November 26, 2008 research report. "KS Oils (KSO) has acquired a 500 metric tonnes per day (MTPD) port based refinery in Haldia Port in East India for Rs 125 crore. The plant which has a total refining capacity of 500MTPD with a vanaspati unit of 150MTPD is located within the Haldia Port with a direct pipeline access to ships. The acquisition will help the company in setting up a manufacturing base in Eastern India, which is one of its key markets. Moreover with this acquisition, KSO currently is using only the ports in western coast due to the presence of its existing plants in western and central India has access to eastern coast thereby reducing its geographic risks."

"The refinery is expected to give a boost to the company’s refined oils product strategy and will produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh. The acquisition is expected to facilitate logistics efficiencies and significantly reduce the time to market KSO’s products to its consumers in East India. We believe this acquisition will bring in incremental sales of Rs 180 crore and Rs 540 crore in FY2009 and FY2010 respectively. The net profit too is expected to increase by Rs 9 crore and Rs 27 crore during the same time periods. We believe this acquisition is EPS accretive and hence we maintain a Buy on the stock with a revised target price of Rs 52 (Rs 47)," says Angel's research report.

Dabur India, Target of Rs 80

Angel Broking has recommended an accumulate rating on Dabur India with a target price of Rs 80 in its November 24, 2008 research report. "Dabur India has acquired 72.15% of Fem Care Pharma Ltd (FCPL), a leading player in the women’s skin care products market, for Rs 204 crore in an all-cash deal. We believe the acquisition to be a positive move by Dabur, although at a slightly higher cost, as it brings to Dabur a portfolio of well-known household brands that enjoy a strong positioning in their respective categories, offering Dabur a strong platform to enter into newer product categories and markets since it was witnessing a slowdown in its core categories like Toothpaste, Hair Oils and Homecare."

"As with the previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, Fem too would offer substantial synergies for expanding the reach of Fem’s brands in all its geographies as well as better management of overall system costs. This provides Dabur an entry into the high-growth skin care market with an established brand name Fem with further potential to extend the brand into newer and related skin care categories. We recommend Accumulate rating on Dabur with a target price of Rs 80," says Angel's research report.

Bharti Airtel - Target of Rs 710

India Infoline has recommended a buy rating on Bharti Airtel with a stoploss of Rs 610 and target of Rs 710 in its November 25, 2008 research report. "In the short-term, we expect the current reversal in trend to continue. The daily RSI is also showing a sign of reversal, currently trading above 45. Short-term traders can buy the stock in the range of Rs 635-650 for a target of Rs 710. It is advisable to maintain a stop loss of Rs 610 on the long positions," says India Infoline's research report.

Stock Views on Patni Computer Systems, Bharti Airtel, Dabur India, KS Oils

Indiabulls Sec on Patni Computer Systems - Target Rs 142

Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142 in its November 25, 2008 research report. "Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2’09, helped by the sharp depreciation of the rupee. respectively. The stock trades at a heavy discount to the industry average multiple of 7.9x and 7.2x for CY08 and CY09, respectively. Besides, based on our DCF valuation, we have arrived at a target price of Rs. 142, assuming an 8% Rf, a 5% terminal growth rate, and a 13.1% WACC. Our target price provides an upside of 20.3% over the current levels; thus, we upgrade our rating to Buy," says Indiabulls Securities' research report.

Angel on KS Oils - Target of Rs 52

Angel Broking has maintained its buy rating on KS Oils with a revised target price of Rs 52 in its November 26, 2008 research report. "KS Oils (KSO) has acquired a 500 metric tonnes per day (MTPD) port based refinery in Haldia Port in East India for Rs 125 crore. The plant which has a total refining capacity of 500MTPD with a vanaspati unit of 150MTPD is located within the Haldia Port with a direct pipeline access to ships. The acquisition will help the company in setting up a manufacturing base in Eastern India, which is one of its key markets. Moreover with this acquisition, KSO currently is using only the ports in western coast due to the presence of its existing plants in western and central India has access to eastern coast thereby reducing its geographic risks."

"The refinery is expected to give a boost to the company’s refined oils product strategy and will produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh. The acquisition is expected to facilitate logistics efficiencies and significantly reduce the time to market KSO’s products to its consumers in East India. We believe this acquisition will bring in incremental sales of Rs 180 crore and Rs 540 crore in FY2009 and FY2010 respectively. The net profit too is expected to increase by Rs 9 crore and Rs 27 crore during the same time periods. We believe this acquisition is EPS accretive and hence we maintain a Buy on the stock with a revised target price of Rs 52 (Rs 47)," says Angel's research report.

Angel on Dabur India - Target of Rs 80

Angel Broking has recommended an accumulate rating on Dabur India with a target price of Rs 80 in its November 24, 2008 research report. "Dabur India has acquired 72.15% of Fem Care Pharma Ltd (FCPL), a leading player in the women’s skin care products market, for Rs 204 crore in an all-cash deal. We believe the acquisition to be a positive move by Dabur, although at a slightly higher cost, as it brings to Dabur a portfolio of well-known household brands that enjoy a strong positioning in their respective categories, offering Dabur a strong platform to enter into newer product categories and markets since it was witnessing a slowdown in its core categories like Toothpaste, Hair Oils and Homecare."

"As with the previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, Fem too would offer substantial synergies for expanding the reach of Fem’s brands in all its geographies as well as better management of overall system costs. This provides Dabur an entry into the high-growth skin care market with an established brand name Fem with further potential to extend the brand into newer and related skin care categories. We recommend Accumulate rating on Dabur with a target price of Rs 80," says Angel's research report.

India Infoline on Bharti Airtel - Target of Rs 710

India Infoline has recommended a buy rating on Bharti Airtel with a stoploss of Rs 610 and target of Rs 710 in its November 25, 2008 research report. "In the short-term, we expect the current reversal in trend to continue. The daily RSI is also showing a sign of reversal, currently trading above 45. Short-term traders can buy the stock in the range of Rs 635-650 for a target of Rs 710. It is advisable to maintain a stop loss of Rs 610 on the long positions," says India Infoline's research report.

Stock Views on Power Grid, Nitin Fire, Dabur India

Indiabulls Securities on Power Grid - Target of Rs 110

Indiabulls Securities Research has initiated a buy rating on Power Grid Corporation of India with a target of Rs 110 in its September 23, 2008 research report. "At the current market price of Rs 91.10, the Company is trading at a price to book multiple of 2.73x. Our valuation model gives us a target price to book multiple of 3.29x and a estimated fair value of Rs 110. We have assumed a discount rate of 9.25%. Our target price shows an upside of 21% from the current price. We therefore initiate coverage with a BUY rating," says Indiabulls Securities' research report.

HDFC Securities on Nitin Fire - Target of Rs 525

HDFC Securities has maintained its buy rating on Nitin Fire Protection Industries with a target of Rs 525 in its September 24, 2008 research report. "Revenues and profits of the company are expected to grow at a CAGR of 58% and 66% over FY08 to FY10E. At the CMP of Rs 271, it is trading at 8.2(x) and 6.4(x) its FY09E and FY10E FDEPS. We have calculated a DCF based target price of Rs 525, an upside of 94% from current levels. We maintain our BUY rating on the stock," says HDFC Securities research report.

Hem Securities on Dabur India - Target of Rs 110

Hem Securities has initiated a buy rating on Dabur India with a target of Rs 110 in its September 23, 2008 research report. "Presently, the stock is trading at times to its earnings and times to its book value. We initiate a 'BUY' signal on the stock with a target price of Rs 110 in the medium term investment horizon expecting an appreciation of 25% from CMP of Rs 87," says Hem Securities' research report