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 Gujarat Industries Power Co, Opto Circuits, Sesa Goa

IIFL on GIPCL - Target Rs 130

IIFL has maintained its buy rating on Gujarat Industries Power Co. (GIPCL), with 12-month price target of Rs 130, in its report.

"GIPCL’s proposed 250MW expansion has been delayed, and now the management expects to commission unit-1 in 3QFY10ii as against 1QFY10ii, which is reflected in our forecasts. At CMP, GIPCL is trading at 0.9x FY10ii BV and 10x FY10ii P/E. We maintain 'BUY', with 12-month price target of Rs 130," says IIFL's research report.


Karvy Stock Broking on Opto Circuits - Target Rs 243

Karvy Stock Broking has maintained its buy rating on Opto Circuits, with price target of Rs 243, in its report.


"We maintain our consolidated net sales and net profit estimates for FY10 of Rs 11,140 million and Rs 2,492 million respectively. Although, the company has reported EBITDA margin expansion of 235 basis points in FY09 to 31.7% over previous year, but we maintain our EBITDA margin estimates for FY10 at 28.5%. This will be on account of increase in raw material and administration & marketing cost. The stock is currently trading at a P/E of 12.5x on FY09E EPS of Rs 12.8, and 10.5x on FY10E EPS of Rs 15.2. We maintain our 'BUY' rating on the stock with price target of Rs 243 on 16x FY10E estimated earnings," says Karvy Stock Broking's report.


Reliance Money Sesa Goa - Target Rs 263

Reliance Money has recommended a buy rating on Sesa Goa, with price target of Rs 263, in its report.

"At CMP, the scrip is quoting at an EV/EBIDTA of 1.2x FY11E earnings (Revised Estimate). Considering the rightful canalizing of the cash available yielding better return over what it used to earlier and the improved pricing power due to enhanced volume at disposal, we would like to attribute a better multiple than we had put in our earlier estimates. We recommend a Buy with a price target of Rs 263 at which the scrip will quote at an EV/EBIDTA of 2x," says Reliance Money's report.