Stock views on Nagarjuna Construction, Prism Cement, Crompton Greaves

IndiaInfoline on Nagarjuna Construction - Target Rs 185

IndiaInfoline research is bullish on Nagarjuna Construction with a target of Rs 185, in its research report.

"Nagarjuna Constructions continues to be in an uptrend after breaking out from consolidation between range of Rs145-180 from first week of November 2009. The momentum indicator RSI is exhibiting positive movement suggesting further upside in the near term. Moreover, volumes have also picked up substantially as the stock breached the upper end of the consolidation range mentioned above. Keeping in mind the above mentioned technical parameters, we recommend traders to buy the stock in the range of Rs173-177 with a stop loss of Rs169 for a target of Rs 185, says IndiaInfoline research report.

Hem Securities on Prism Cement - Target Rs 70

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

“The company enjoys cost competitiveness due to modern plant, lower overheads, operational efficiencies and logistics management. It is ideally positioned with a strong brand name in the high potential markets of UP, MP and Bihar. The company would sustain its industry leading profitability due to focus on high net cement realisation zone, flexible product and distribution mix (trade and non trade) and lower total delivered cost. Major expansion plan initiated by the company would enhance growth in coming years. In wake of such growth, Prism Cement Ltd seems to be extremely attractive investment opportunity.”

“Presently, the stock is trading at Rs 50.40 which is at 7.47 times to its TTM (Trailing twelve months) earnings and 1.92 times to its book value of Rs 26.25. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 70 in long term investment horizon expecting an appreciation of about 39% from the current level of Rs 50.40.”

Angel Broking on Crompton Greaves - Target Rs 525

Angel Broking has come out with a research report on Crompton Greaves. The research firm has upgraded the stock from accumulate to buy, with a 15-month target price of Rs 525.

"We have been maintaining positive stance on Crompton Greaves (CGL) right from initiating coverage report dated June 12, 2009, citing its unjustifiably huge valuation gap with peers ABB and Areva T&D. Now we introduce our FY2012 estimates, and expect the company to register a top-line and bottom-line CAGR of 12.1% and 19.8%, respectively, during FY2009-12E. We upgrade the stock from accumulate to buy, with a 15-month Target Price of Rs 525", says Angel Broking.

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 JK Tyre, Apollo Tyres, Tinplate Company of India

Emkay Global Financial Services on JK Tyre - Target Rs 192

Emkay Global Financial Services has recommended buy rating on JK Tyre and Industries with a target price of Rs 192.

“Despite concerns on account of spiraling raw material prices and strike at its Rajasthan plant, we find JK Tyres (JKT) an attractive valuation pick. We are factoring in a sharp drop of 27% in our FY11 consolidated earnings estimates to Rs 38.5 per share. For standalone business, we expect a 25% decline in FY11 earnings to Rs 30 per share. For its subsidiary, 'Tornel' we expect a 41% earnings decline in FY11 to Rs 8.5 per share. We are conservative in our estimates on Tornel due to limited availability of information.”

“Despite such a sharp drop in FY11E earnings, at CMP of Rs 150, the stock trades at a PER, EV/EBIDTA and P/B of 3.9x, 4.2x and 0.7x respectively. We believe that there is ample scope for positive surprises - like commencement of new TBR capacity from October 2009, increase in PCR capacity by 10% to 5 mn tyres in FY11, price hikes to pass on the cost pressures. Similarly for Tornel, higher capacity utilization is likely to result in positive surprises. We are not assuming any significant increase in capacity utilization at the current juncture. We initiate coverage on the stock with a Buy rating and a target price of Rs 192,” says Emkay Global Financial Services.

Emkay Global Financial Services on Apollo Tyres - Target Rs 60

Emkay Global Financial Services has recommended buy rating on Apollo Tyres with a target of Rs 60, in its research report.

“We like Apollo Tyres (ATL) for its thirst for market leadership with a clear focus on profitability in the domestic markets. Similarly, we like its inorganic strategy of - focusing on complimentary product profiles and selecting strategically important locations to become a leading global player. ATL is well placed to reap the benefits of the strong demand momentum in domestic markets as well as demand recovery in South African and European markets (through subsidiaries).”

“At a CMP, the stock trades at a PER, EV/EBIDTA and P/B of 7.3x, 4.4x and 1.3x our FY11E consolidated earnings (excluding VBBV). We are factoring in a 15% earnings decline in FY11 due to raw material pressures. Barring a further spike in rubber price, we expect positive earnings surprises. We believe that the biggest surprise shall come from subsidiaries.

Our estimates factor in a profit contribution of 15% from subsidiaries in FY11E as compared to 35% contribution to revenues. We initiate coverage on the stock with a BUY rating and a target price of Rs 60. At our target price, the PER, EV/EBIDTA and P/B works out to 8.9x, 5.1x and 1.5x our FY11E consolidated earnings.”

Hem Securities on Tinplate - Target Rs 80

Hem Securities has recommended buy rating on Tinplate Company of India with a target of Rs 80, in its research report.

“With economic growth, the packaging industry in India is also poised for growth which would lead to growth in tinplate demand and Tinplate Company of India, being the market leader would reap such benefit. Further, with increase in competency via setting up second cold rolling mill and increasing production going forward and preference of use of cans than bottles by consumers gives visibility to revenue stream in coming future. In wake of such growth, Tinplate Company of India Ltd seems to be extremely attractive investment opportunity.”

“Presently, the stock is trading at Rs 64 which is at 5.32 times to its earnings and 2.47 times to its book value of Rs 25.92. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of INR 80 in medium to long term investment horizon expecting an appreciation of about 25% from the current level of INR 64, says Hem Securities research report.

Stock views on Polaris Software, Adhunik Metaliks, Bharat Heavy Electricals

Hem Securities on Polaris Software - Target Rs 250

Hem Securities is bullish on Polaris Software Lab and has recommended buy rating on the stock with a target of Rs 250, in its research report.

“A review of the market opportunity areas and Polaris offerings and strengths indicates an overall positive outlook for the coming year, with a good mix from current geographic markets as well as new developing markets and business lines. Further, good cash and cash equivalents, efficient acquisition via internal accruals, minimal debt, expanding global presence via strong tie-ups, diversified product portfolio and strong client base including big clients like Axis bank, HDFC bank, ICICI Prudential, AIG and many big global players would fuel revenue growth going forward. In wake of such growth, Polaris Software Lab Ltd. seems to be extremely attractive investment opportunity.”

“Presently, the stock is trading at Rs 180 which is at 13.55 times to its earnings and 2.29 times to its book value. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 250 in medium to long term investment horizon expecting an appreciation of about 40% from the current level of Rs 180,” says Hem Securities research report.


Motilal Oswal on Adhunik Metaliks - Target Rs 147

Motilal Oswal has maintained buy rating on Adhunik Metaliks with a target of Rs 147 in its research report.

“Adhunik Metaliks is an integrated special steel producer and iron ore miner. It is venturing into the power business through its subsidiary, APNR. ADML will be merging group companies Vedvyas and MP Ispat, which will bring 120,000tpa of coke oven capacity and 120,000tpa of sponge iron capacity. Consolidated EPS is likely to grow at a CAGR of 58% over FY09-12 on account of growth in steel production and iron ore mining. The stock is trading at 4.6x FY12E EPS and an EV of 5.2x FY12E EBITDA. We value the stock at Rs 147 per share (EV/EBITDA of 6.5x FY12E). Maintain Buy,” says Motilal Oswal research report.

Motilal Oswal on BHEL - Target Rs 2752

Motilal Oswal is bullish on Bharat Heavy Electricals (BHEL) and has recommended buy rating on the stock with a target of Rs 2752.

“We expect BHEL to witness robust order intake during the next 12-18 months, driven largely by

(i) supportive equity markets, which would enable financial closure for private projects,

(ii) 'National Tariff Policy' stipulation that CPSUs and state entities must award projects by January 2011 to be eligible for CERC methodology of tariff determination,

(iii) bulk ordering of 11 supercritical sets (660MW each) by NTPC and DVC expected in 1HFY11, and

(iv) order award of 6.5-6.9GW from JVs signed by BHEL with state utilities.”

“During FY09-12, we expect BHEL to report earnings CAGR of 28%, in line with revenue CAGR of 28%. We expect adjusted EBITDA margin to expand 167bp during FY09-12, despite 505bp reduction in staff costs (as a percentage of revenues). Other income is likely to grow at a CAGR of just 3.3% till FY12, given decline in customer advances, as execution improves and order intake stagnates. We upgrade the stock to Buy, with a price target of Rs 2,752 per share.”

Stock views on Jyoti Structures, Texmaco, JP Associates

Hem Securities on Jyoti Structures - Target Rs 200

Hem Securities has recommended a buy rating on Jyoti Structures with a target price of Rs 200 in its research report.

"The company has registered decent set of numbers for the quarter ended June 2009. Net sales stood at Rs.4,847.32, million up by around 21% from the corresponding quarter last year. Since the stock offers good investment opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 200," says Hem's research report.


Asit C. Mehta on Texmaco - Target Rs 124

Asit C. Mehta has recommended a buy rating on Texmaco with a target price of Rs 124 in its research report.

"The announcement of a 61% increase in procurement in the Railway Budget for FY10 points to increasing focus on easing infrastructure bottlenecks for the industry. We initiate coverage on Texmaco with a 'BUY' recommendation and a price target of Rs 124 at a target P/E of 14x FY11E. We have not factored in any value from its Delhi land as it has been under litigation for the last many years without result," says Asit C. Mehta's research report.


IIFL on JP Associates -Target Rs 250

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.

Stock views on Colgate Palmolive, Welspun Gujarat Stahl Roh, Rolta India

Hem Securities on Rolta India - Target Rs 255

Hem Securities has recommended a buy rating on Rolta India with a target price of Rs 255 in its research report.

"The company’s future prospects are becoming brighter with the various orders in hand and improving yearly and quarterly performance. Presently, the company is running at a P/B multiple of 2.02x to it’s FY09 book value of Rs.88.42 while the P/E multiple of the company is running at 9.77x to its FY09 EPS of Rs.18.25. However, the industry is running at a P/E multiple of 19.30x which leaves the stock with a significant upside potential. Hence, we recommend 'BUY' on the stock with a medium term price target of Rs.255.00," says Hem Securities' research report.


SKP Securities on Welspun Gujarat Stahl Roh - Target Rs 362

SKP Securities has recommended a buy rating on Welspun Gujarat Stahl Roh with a target price of Rs 362 in its research report.

"Welspun has the strong order book position of Rs 68.4 billion, executable within 12-15 months, of which 80% are export orders and rest are domestic. We recommend Buy rating on the stock with a target price of Rs 362/- in 18 months implying a P/E multiple of 14x of FY11E earnings," says SKP Securities' report.


KRChoksey on Colgate Palmolive - Target Rs 703

KRChoksey has recommended a buy rating on Colgate Palmolive (India) with a target price of Rs 703 in its research report.

"CPIL continues to sustain its leadership position in the Rs. 4,000 crore Indian Oral care industry, with a dominant market share of 50%. CPIL - managed by professionals, having concentrated business model, good cash generation from operations, zero debt and surplus cash bank balance is attractive in the Indian FMCG space. Strong brand loyalty, low penetration level, increased hygiene awareness and increasing contribution from rural India are the growth drivers for the company. We initiate our coverage on the stock with a ‘BUY’ recommendation with a target price of Rs. 703, giving an upside potential of 16%. We have valued the company at a P/E multiple of 20x FY11E EPS of Rs. 30.3," says KRChoksey's research report.

Stock views on Opto Circuits, GMR Infrastructure, Network 18

Karvy Stock Broking on Opto Circuits - Target Rs 244

Karvy Stock Broking has recommended a buy rating on Opto Circuits India with a target price of Rs 244 in its research report.

"We have increased our target price from Rs 243 on 16x FY10E estimated earnings to Rs 244 on 13x FY11E estimated earnings. The stock is currently trading at a P/E of 12.3x FY10E diluted EPS of Rs 15.4 and 10x FY11E diluted EPS of Rs 18.8. We maintain our recommendation on the stock as a BUY," says Karvy's research report.

Hem Securities on GMR Infra - Target Rs 214

Hem Securities has maintained its buy rating on GMR Infrastructure with a target price of Rs 214 in its research report.


"The company has performed very well although constrain on the margin, which we expect to be on track in the near future. The future growth is expected to come from power and airports. Lower naphtha prices and higher gas availability is further likely to benefit the company. The biggest growth driver is going to be the airport business. The company’s efforts to add new airlines, increase the user development fee and other aero charges will increase revenue. The roads projects help the company to improve their margins, as the margin from roads projects is highest. We are very positive on the long term business prospects of the company and financial performance. We reiterate “BUY” on the stock with target price of Rs 214.00 with a medium to long term investment horizon," says Hem Securities' research report.


Sharekhan on Network 18 - Target Rs 143

Sharekhan has maintained its buy rating on Network 18 Media & Investments with a target of Rs 143 in its research report.

"For the Network18 group FY2009 was a year of severe pressure in terms of both operations and fund availability. In our opinion, things are unlikely to get any worse. With the advertising market showing nascent signs of recovery on the back of considerable easing of the growth concerns among corporate India, Network18’s properties are likely to bounce back. Thus, with Network 18 sufficiently funded to take care of the gestation period of its ventures and the funding requirements of its businesses (especially for Viacom 18), being the holding company of the group it would create significant value for equity holders in the longer term. We maintain our 'Buy' recommendation on the stock with a sum-of-the-parts price target of Rs 143," says Sharekhan's research report.

Stock Views on BHEL, Yes Bank, Balrampur Chini

Karvy Stock Broking on BHEL - Target Rs 2653

Karvy Stock Broking has recommended an outperformer rating on Bharat Heavy Electricals (BHEL), with price target of Rs 2653, in its report.

"Bharat Heavy Electricals (BHEL) is a leading power equipment manufacturer in India and a play on India's increasing power generation requirement. The capacity addition of 10,000 MW (100% of existing) by FY12 is expected to improve execution capability and drive the revenue at a CAGR of 22.3%. The net profits are expected to boost up from 540 bps margin improvement mainly on account of cost control and are expected to increase at a CAGR of 30% to Rs 68.99 bn by FY12. We believe BHEL will be outperformer considering strong revenue visibility and earnings growth along with attractive return ratios (28% for FY10-FY12). We initiate our coverage with target price of Rs 2,653 over 12 month period," says Karvy Stock Broking's report.


Hem Securities on Yes Bank - Target Rs 244

Hem Securities has recommended a buy rating on Yes Bank with a price target of Rs 244 in its report.

"Yes bank has registered a compounded growth rate of around 60% since it interception. We expect the bank to continue to grow at a high rate. We are very positive on the long term business prospects of the company and financial performance. At Current Market Price of Rs 165.05 the stock is trading at a PE of 16.15x. With expected EPS for FY10 and FY11 of Rs 17.73 and Rs 19.32 respectively, the stock is trading at a PE of 9.7x and 8.9x respectively. The price of the stock is undervalued at current level of Rs 165.05. We reiterate “BUY” on the stock with target price of Rs 244 with a medium term investment horizon. The Upside for the stock is Rs 79," says Hem Securities' report.

SKP Securities on Balrampur Chini - Target Rs 157

SKP Securities has recommended a buy rating on Balrampur Chini Mills, with price target of Rs 157, in its report.

"With the festive season round the corner, the demand for sugar is expected to go up. As the consumption is about to outweigh demand, the domestic sugar prices have already touched a 30 year high, and is projected to move up even further. BCML is well poised to substantially gain from the price rise, on account of lower contracted import cost, improved margins and better realizations. We recommend a 'BUY' on the stock with a 12 month target price of Rs 157 at 10x FY10E earnings, giving it an upside potential of 39%," says SKP Securities' report.

Stock Views on Bajaj Auto, Power Grid, Welspun Gujarat

Bonanza on Welspun Gujarat - Target Rs 240


Bonanza has recommneded a buy rating on Welspun Gujarat with target price of Rs 240 in its research report.

"The quarter started with the order book of approximately Rs 7500 crore and added Rs 1200 crore. The company gets orders from both domestic and overseas buyer. The company’s five year CAGR of consolidated revenue is 53.3% and profit is 58.3%. The company’s operating margin will extensively go up in FY 10 due to fall in price of raw materials as well as selling price. The company is trading at the one year Forward PE of 7.4X. The new investors can 'BUY' at CMP of Rs 201 with the target of Rs 240, " says Bonanza's report.

Hem Securities on Power Grid - Target Rs 144

Hem Securities has initiated a buy rating on Power Grid Corporation of India with a target price of Rs 144 in its research report.

"The company posted financial figures for the quarter ended March 2009 more than expectations. The net sales for the company gone up by 44.30% to Rs 22498.90 million for the Q4FY09 as against the net sales of Rs 15591.80 million for the Q4FY08. The stock at the current market price of Rs 110.10 will trade 27.38 times to its earnings of Rs 4.02 and 3.16 times to its book value of Rs 34.74 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 144 in the medium term investment horizon (5- 6 months) with an appreciation of about 30%," says Hem's research report.


Hem Securities on Bajaj Auto - Target Rs 1430

Hem Securities has initiated a buy rating on Bajaj Auto with a price target of Rs 1430 in its report.

"Bajaj Auto limited is one of the largest two wheeler manufacturing company in India. The company posted excellent financial figures for the quarter ended June 2009. The net sales for the company remain flat at Rs 23384.70 million for the Q1FY10 as against the net sales of Rs 23107.60 million for the Q1FY09. The company posted the operating profits of Rs 4314.00 million for the Q1FY10 as against the operating profits of Rs 2667.80 million for the Q1FY09 with the growth rate of 61.71%. The company plans six new launches in 2009 and on back of these launches the company is planning to almost double its sales in India by the second half of 2009-10. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 1430 in the medium term investment horizon (4- 5 months) with an appreciation of about 24%,“ says Hem Securities' report.

Stock Ves on Voltamp Transformers, Infosys Technologies , Wipro

Angel on Wipro - Target Rs 487

Angel Broking has upgraded its rating on Wipro to accumulate with a target price of Rs 487 in its research report.

"For 1QFY2010, Wipro recorded a 1.7% qoq decline in top-line. Combined IT Service Revenues clocked a 2.2% qoq decline. On the other hand, in US Dollar terms, IT Service Revenues dipped 1.3% qoq (USD 1,032.6 million v/s USD 1,046 million in 4QFY2009). Valuations are not too demanding and given an expected recovery in the global economic environment in 2HFY2010 and particularly FY2011, we believe that the Indian IT Sector will benefit significantly from such an economic up-turn. Wipro, being a top-tier Indian IT company is expected to be a key beneficiary. Thus, we upgrade the stock to 'Accumulate' with a target price of Rs 487, assigning a P/E of 16x FY2011E EPS," says Angel's research report.

Hem Securities on Infosys - Target Rs 2350

Hem Securities has recommended a buy rating on Infosys Technologies with a target price of Rs 2350 in its research report.

"Infosys Technologies Ltd has posted great figures for Q1FY10. The revenues of the company have gone up from Rs.48540 million in Q1FY09 to Rs.54720 million in Q1FY10 showing an increase of 12.73%. Presently the company is running at a P/E multiple of 18.33x to its FY09 EPS of Rs.104.69. Based on the robust financial performance reported by the company, we recommend 'BUY' on the stock with a medium term price target of Rs 2350.00," says Hem Securities' research report.

India Capital Markets on Voltamp Transformers - Targets Rs 1015

India Capital Markets has recommended a buy rating on Voltamp Transformers with a target price of Rs 1015 in its research report.

"Voltamp Transformers Limited is among the top 3 players in building application transformers in the organised market and commands 20% market share in the industrial application transformers, with large installation base of more than 37000 transformers. We expect volumes to grow at a CAGR of 14.5% over FY09-11 and expect revenues to grow at a CAGR of 8.5% over the same period. Despite likely moderation in its FY10 earnings, any revival in order inflow in the current financial year on account of amplified focus on infrastructure development from the newly formed government will provide earnings upside in FY11. At the current market price, the stock trades at 8.05x its FY 10E earnings of Rs 94.60 and 6.75x its FY 11E earnings of Rs 112.84. We recommend 'BUY' with a target price of Rs 1015 based on the P/E Multiple method (9x its FY11E earnings), i.e. a potential upside of 33% from its current levels. We believe the company offers decent opportunity to play on the India T&D sector story," India Capital Markets' research report.

Stock Views on IDBI Bank, Power Grid Corporation, Sintex Industries

Angel Broking on Sintex Industries - Target Rs 248

Angel Broking has maintained its buy rating on Sintex Industries with a target price of Rs 248 in its research report.

"Sintex Industries’ (Sintex) consolidated Net Sales de-grew by 9.1% to Rs 662.4 crore (Rs 728.6 crore) in 1QFY2010. Sintex’s 1QFY2010 consolidated Operating profits stood at Rs 87.4 crore. The OPM for the quarter stood at 13.2%, increasing by 50bp on a yoy basis.Going ahead, we expect the company’s business to be primarily driven by its building construction division. We like Sintex on account of its high revenue visibility in the monolithic and prefab business, where it has an order book position of around Rs 1,600 crore,

with another Rs 190 crore of fresh orders from Rural housing in the pipeline. Despite the slowdown in the auto industry, the company’s custom molding segment is expected to deliver a strong performance in the future, due to robust demand from the electrical segment."

Hem Securities on Power Grid - Target Rs 144

Hem Securities has recommended a buy rating on Power Grid Corporation, with price target of Rs 144, in its report.

"The stock at the current market price of Rs 111.05 will trade 27.65 times to its earnings of Rs 4.02 and 3.20 times to its book value of Rs 34.74 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 144 in the medium term investment horizon (5- 6 months) with an appreciation of about 30%," says Hem Securities' report.

Sharekhan on IDBI Bank - Target Rs 169

"In Q1FY2010, IDBI Bank recorded an impressive growth in its core operating profit (up 275% year on year [yoy]) on the back of marked improvement in various operating parameters (viz. year-on-year [y-o-y] improvement in margins, lower cost to income, strong core fee income growth, healthy advances growth). However, the same could not trickle down to the bottom line on account of multi-fold increase in provisioning expenses (bulk of which relates to Dabhol Power Plant) during the quarter. Consequently, the net profit growth was contained at 7.6% yoy (well below our expectation)."

"At the current market price of Rs 100, IDBI Bank trades at 5.4x FY2011E earnings per share, 2.6x 2011E pre-provisioning profit and 1.0x FY2011E price-adjusted book value. We maintain our Buy recommendation on the stock and shall return soon with a detailed analysis of the bank's Q1FY2010 performance after discussion with the management on the same, target price Rs 169, “ says Sharekhan's research report.

Stock Views on Orchid Chemicals, Nestle India, Axis Bank

Angel Broking on Orchid Chemicals - Target Rs 110

Angel Broking is bullish on Orchid Chemicals and has recommended a buy rating on the stock with a target of Rs 110 in its report.

"Orchid has been an underperformer on the bourses on account of delays in receiving approvals for its high-Margin products, which resulted in higher Debt burden. However, now having received approval for Tazo+Pip in the EU and likely approval for the product in the US in 2QFY2010, we believe the product pay-off has begun for the company. Nonetheless, we have pruned our FY2011E Earnings estimates by 13.3% post increase in the MAT rate in the recent Union Budget from 10% to 15% as the company does not claim the MAT credit."

"On the valuation front, the stock is trading at 5.3x FY2011E Adjusted Earnings and 1.3x FY2011E EV/Sales, which we believe discounts the high debt on the company's Balance Sheet and delays in receiving approvals for its key products. Hence, we recommend a Buy on the stock at 7x FY2011E Adjusted Earnings with a revised Target Price of Rs 110 (Rs 136). At our Target Price the implied EV/EBITDA stands at 5.7x and EV/Sales at 1.4x FY2011E, which is much below its historical average of last 4 years of 12.1x and 2.6x, respectively," says Angel Broking's research report.

Hem Securities on Nestle India - Target Rs 2500

Hem Securities has recommended a buy rating on Nestle India with a target of Rs 2500 in its report

"Nestle India has reported excellent results for Q1FY09. The net sales surged from Rs 10932.60 million in the same quarter last year to Rs 12707.80 million this quarter depicting an increase of 16.24%. This also resulted in an increase in the operating profit to Rs 3041.00 million showing a growth of 25.97% from Q1FY08. The net profit of the company increased by 23.20% to Rs 1973.00 million. We are positive on company’s long term prospects. The company has earned the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Based on the positive financial performance reported by the company, we recommend 'BUY' on the stock with a medium term price target of Rs 2500, “ says Hem Securities' report.

Prabhudas Lilladher on Axis Bank - Target Rs 880

Prabhudas Lilladher has maintained its accumulate rating on Axis Bank with a target price of Rs 880 in its report.

"Asset quality risks from corporate loan restructuring are a sector wide risk. Hence, we need to be selective and invest in those banks which will be able to absorb these shocks and still deliver reasonable earnings growth. We remain confident that Axis Bank is capable of delivering a 25-30% CAGR in earnings over FY09-11E. At the CMP of Rs 756, the stock is quoting at 9x FY11E EPS, 1.8x FY10E BV and 1.9x FY11E ABV. We continue to favour Axis bank from a medium-to-long term perspective. Maintain our Accumulate rating with a revised price target of Rs 880 (rolling over to FY11E)," says Prabhudas Lilladher's research report.

Stock views on Divis Labs, South Indian Bank, Tata Tea

Hem Securities on Divis Labs - Target Rs 1370

Hem Securities has initiated a buy rating on Divi's Laboratories with a target price of Rs 1370 in its research report.


"Being a pioneer in the API and CRAMS segment, Divi’s Laboratories has posted tremendous growth over the past few years. With the leadership in dextromethorphan, phenyleffrine, nabumetone and lopamidol, the com-pany is expected to witness surge in its business. Further, with almost completion of massive capex, the company is expected to continue to post excellent financial performance on the back of its successful entry into the high margin nutraceuticals segment. In wake of the growth of the phar-maceutical sector, Divi’s Laboratories Ltd seems to be extremely attrac-tive investment opportunity."


"Presently, the stock is trading at Rs 1088.60 which is at 16.92 times to its earnings and 5.68 times to its book value of Rs 191.72. Since the stock offers good opportunity, we initiate a ‘BUY’ signal on the stock with a target price of Rs 1370 in medium to long term investment horizon ex-pecting an appreciation of about 26% from the current level of Rs 1088.60", says Hem Securities' report

FinQuest Securities on South Indian Bank - Target Rs 120

FinQuest Securities has recommended a buy rating on South Indian Bank, with price target of Rs 120, in its report.

"South Indian Bank is trading at an attractive valuation of 0.7x FY10E ABV. Peer banks like KTK Bank, KVB etc continue to trade at 1x FY10 ABV, although operational parameters are comparable with SIB. We therefore believe that SIB’s valuations will catch up with peer banks. Our target price of Rs 120 for the stock (based on DDM model) discounts 1x FY10E ABV. We recommend Buy on the stock," says FinQuest Securities' report.

KRChoksey on Tata Tea - Target Rs 859

KRChoksey has maintained its buy rating on Tata Tea, with price target of Rs 859, in its report.

"More than 70% revenues and 80% of EBIT come from tea business, which is likely to face margin pressure in FY10 as tea prices are likely to remain firm on account of decline in production by 5%. However, with company planning to leverage its tea & coffee brands in other beverage products would help it to diversify and become a complete beverage company. The company plans to focus on six key geographies - Great Britain and Africa, Europe and Middle East, the U.S., Canada and South America, South Asia and Asia Pacific, innovation and distribution going ahead to integrate the business, take advantage of economies of scale. Its recent launch T!ON - an active drink made from fruit juice, tea extracts and ginseng in Chennai has been performing well. At CMP of Rs 728, we maintain our ‘BUY’ recommendation on Tata Tea with a target price of Rs 859, which gives it an upside potential of 18%. At the CMP, the stock is trading at 5.1x FY10E earnings of Rs 143.8," says KRChoksey's report.

Stock views on Sasken Communication, GAIL, Patel Engg,

Angel on Sasken Communication, target of Rs 127

"Going ahead, we expect Sasken to record 8.5% and 22.6% CAGRs in its Top-line and Bottom-line, respectively, over FY2009-11E (excluding one-time items). Sasken continues to struggle to cope with the difficult business environment, and its key segment, Network Equipment Manufacturers, remains in consolidation mode. The medium-term outlook remains hazy for Sasken even as a recovery is anticipated in 2HFY2010. While the business prospects in the medium-term are a little subdued, we believe current valuations at just 3.3x FY2011E EPS adequately factor this in. We upgrade the stock to Buy from Neutral with a Target Price of Rs 127, implying a P/E of 4x FY2011E EPS," says Angel Broking's report.

Hem Securities on GAIL, target of Rs 340

"GAIL has come up with promising results for FY09. Petrochemicals contributed 11% in Sales. The petrochemical realizations are expected to be better in the future. Liquid Hydrocarbons added 19% to the Gross margins. GAIL has set a target of transmitting 94.8 MMSCMD of natural gas from domestic sources and through LNG route during FY 2009-10 under the Annual Memorandum of Understanding signed with Ministry of Petroleum and Natural Gas for performance targets for the Financial Year 2009-10."

"During the FY 2009-10, to achieve the Excellence in performance, the Company has also targeted for Gas Marketing target of around 83.2 MMSCMD. The MoU also provides for an ‘Excellent’ production target of 400 TMT of Polymers (HDPE & LLDPE - High-Density Polyethylene & Linear Low- Density Polyethylene) and 1,260 TMT of Liquid Hydrocarbons. Presently, the company is running at a P/E multiple of 13.02x to its FY09 EPS of Rs 22.28. Based on the increase in the Gas sales and LPG transmission, we recommend 'BUY' on the stock with a medium term price target of Rs 340," says Hem Securities' report.

Angel Broking on Patel Engg, target of Rs 545

We have valued Patel Engineering on SOTP methodology. We have assigned its Core Construction business a PE of 12x FY2011E EPS of Rs 36.8. Its Real Estate arm has been valued at a huge discount, using the NAV method, at Rs 103/share. In the recent past, the stock had witnessed a sharp appreciation, in line with its construction peers. We believe that, at the current levels, PE is available at reasonable valuations. At Rs 429, the stock is trading at 11.6x its FY2011E EPS of Rs 36.8, on a consolidated basis without considering its real estate venture. We recommend a Buy on the stock, with a Target Price of Rs 545," says Angel Broking's report.

Stock views on Navneet Publications, Dr Reddys Labs, Gujarat NRE Coke, Mphasis

Sharekhan on Navneet Publications - Target of Rs 59

Sharekhan has recommended a buy rating on Navneet Publications with a price target of Rs 59 in its research report.

"With the growth in publication business moderating, Navneet Publications India (Navneet) has been banking on stationery business to drive its top line growth. As a result, the revenues from the stationery business are expected to grow by 57% in FY2009 to Rs 214 crore. This is also reflected in the revenue contribution from the stationery business that has increased from 34% in FY2007 to 44% now. For Q4FY2009, we expect Navneet’s top line to grow by a robust 33.8% year on year (yoy) driven by a strong performance of its stationery business. We maintain our Buy recommendation on the stock with a price target of Rs 59," says Sharekhan's research report.

Angel Broking on Dr Reddys Labs - Target of Rs 581

Angel Broking has maintained its buy rating on Dr Reddys Laboratories with a target price of Rs 581 in its research report.

"Dr Reddy’s (DRL) has announced realigning its Global Generics strategy to focus on certain key geographies and to gradually exit some of the very small distributor driven markets. The markets that DRL proposes to exit overall contribute less than 1% to its Top-line. In addition to the US, India, Russia and CIS nations and Germany operations which already large contribute a substantial approx 90% (for 9 months December 2008) of the Global Generics revenues, the company will continue operations in 10-15 markets wherein its finished dosages sales are growing significantly. The move represents the company’s renewed focus to consolidate and grow in its key geographies. We maintain a Buy on the stock, with a target price of Rs 581," says Angel Broking's research report.

ULJK Securities on Gujarat NRE Coke - Target of Rs 37

ULJK Securities has recommended a buy rating on Gujarat NRE Coke with a target price of Rs 37 in its research report.

"Gujarat NRE Coke Ltd (GNCL) is the largest independent producer of metallurgical coke in India, having a coke manufacturing capacity of 1 Mtpa, which is getting increased to 1.25 Mtpa by March 2009. It is also the only Indian company to have acquired captive coking coal mines outside India. GNCL has already started the mining in Australian mines and is expected to produce around 1 million MT of coking coal for FY09E and slowly scale up to over 7 million MT by 2013E."

"We have valued Gujarat NRE Coke on the EV/EBITDA based methodology.The stock is presently trading at an EV of 2.4 (x) FY10E EBITDA. We have given a target EV of 3.5 (x) FY10E EBITDA and recommend a buy of Gujarat NRE Coke with a target price of Rs 37," says ULJK Securities' report.

Hem Securities on Mphasis - Target of Rs 238

Hem Securities has maintained its buy rating on Mphasis with a target of Rs 238 in its research report.

"Mphasis Limited has registered a robust growth rate over past few years. As discussed with the Company Management, we expect Applications Services and Infrastructure Technology Outsourcing to drive growth in the future. The company share is trading at a low PE of around 6.0X. We expect the company to outperform in the future and we reiterate “BUY” on the stock with a target of Rs 238," says Hem Securities' report.

Stock views on Bharat Heavy Electricals, Aban Offshore, Lupin

Sharekhan on BHEL - Target of Rs 2546

Sharekhan has maintained its buy rating on Bharat Heavy Electricals, BHEL with a price target of Rs 2,546 in its research report.

"BHEL’s strong revenue visibility (with an order book of 4.8x FY2008 revenues) coupled with its strong balance sheet makes it our preferred pick in the sector. We expect the company to report a turnover growth of 31.6% year on year (yoy) and profits to grow at 8.3% yoy. For the full year, the company would be making a provision of Rs 1,313 crore for increment in wages, as recommended by the Sixth Pay Commission. For Q4FY2009, the provision would be to the tune of Rs 475 crore. We expect the total order inflows for FY2009 to rise by 39%, while the backlog should settle at a 19% growth on a year-on-year (y-o-y) basis."

"BHEL currently has a strong Rs 1,13,500 crore worth of orders on hand, imparting revenue visibility for the next three to four years, which makes BHEL our preferred pick in the sector. At the current market price, the stock trades at 16.9x FY2010E earnings and at a premium to the Sensex owing to its resilient business model and strong balance sheet. We reiterate our Buy on the stock with a price target of Rs 2,546," says Sharekhan's research report.

Hem Securities on Aban Offshore - Target of Rs 784

Hem Securities has recommended a buy rating on Aban Offshore with a price target of Rs 784 in its research report.

"Aban Offshore Ltd., has two business segments: Offshore Oil Drilling and Production services, and Wind Power generation. The company posted excellent financial figures for the quarter ended December 2008. The net sales for the company gone up by 54.88% to Rs 2618.68 million for the Q3FY09 as against the net sales of Rs 1690.74 million for the Q3FY08. The net profit for the company rose to Rs 558.72 million for the Q3FY09 in comparison to net profit of Rs 477.67 million for the Q3FY08 with the growth rate of 16.97%. The net profit margin stood at 21.34% for Q3FY09 in comparison to 28.25% for Q3FY08."

"Besides, the current market valuation also makes an attractive case for fresh investments in the stock. Aban Offshore has contracts of about Rs. 14000 crore, which clearly shows the strength of the company. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 484 in the medium -term investment horizon with an appreciation of 15%," says Hem Securities' research report.

Sharekhan on Lupin - Target of Rs 840

Sharekhan has maintained its buy rating on Lupin with a price target of Rs 840 in its research report.

"Lupin has acquired a majority stake in Multicare Pharmaceuticals Philippines, Inc (MC) in the Philippines. MC reported revenues of Php 272 million peso (USD 5.6 million) and was profitable for the year ending December 2008. This strategic partnership will allow Lupin to strengthen MC’s product portfolio in the Philippines through its own brands and provide cross-selling opportunities through some of its latest acquisitions in the other markets."

"With the sustained growth momentum in the domestic market, strong visibility of the earnings from the US business owing to sizeable product opportunities and the ramp-up of the business in Europe, Japan, Australia and the other markets, we expect Lupin to deliver a strong performance over the next few years. We expect MC to be accretive to Lupin’s earnings from the first year itself, though the contribution would be very marginal. Keeping in mind the strong business fundamentals and the growth potential of the company, we maintain our Buy recommendation on Lupin with a price target of Rs 840" says Sharekhan's research report.

Stock Views on BHEL, Hindustan Unilever, Pfizer

Emkay on Hindustan Unilever, target of Rs 305

Emkay Global Financial Services has maintained its buy rating on Hindustan Unilever with target price of Rs 305 in its research report.

"HUL implemented price cut of 4%-20% on select brands and product categories. The price cuts are implemented either directly (20% price cut on Wheel Active Blue) or indirectly through weight changes (4.2% weight increase in Lifebuoy and 6.7% - 8.3% weight increase in Wheel Green). Considering above mentioned price cuts on select brands, total blended price reductions is approximately 1.2%. This translates into net cost saving of Rs 5,301 million compared to Rs 7,637 million earlier and additional EBITDA margin of 2.9% versus 4.1% earlier."

"Recent price reductions ratify our call that consumer staple companies will retain some savings to improve margin profile and intensify advertisement activities and utilize the balance for price reductions to benefit consumers. The recent price reduction on select brands is in-line with expectation. Despite adjusting the above price actions, HUL can implement incremental price reductions of 3.1% without impacting FY10E earnings estimates and intensify advertisement activities. Our earnings forecasts for CY09E remain unchanged at Rs 11.7/Share. We maintain our BUY rating with target price of Rs 305," says Emkay Global Financial Services' report.

IIFL on BHEL, target of Rs 2585

IIFL has recommended a buy rating on Bharat Heavy Electricals with a target price of Rs 2,585 in its research report.

"Higher-than-expected 34% YoY growth in 4Q gross revenues was reassuring after the execution slip in 3Q. However, our fears of a muted guidance for FY10 revenues came true. The 16.3% YoY growth in gross revenues implied by MoU target of Rs 320 billion under ‘Excellent’ rating is below our estimate as well as consensus. The muted guidance reflects constraints on accelerated execution, as was evident during our recent visit to a project site. We cut our FY10 and FY11 earnings estimates by 5% on lower revenue estimates. Order coverage ratio of 4.6x provides unmatched earnings visibility in the Indian capital-goods universe, but valuations, at PE of 18.7x on FY10ii and 15.5x on FY11ii, leave little room for slippages."

"Bharat Heavy Electricals’s 4Q gross revenue growth of 34% YoY helped the company beat the FY09 MoU targets by 1.8%. However, EBITDA margin likely contracted by 300bps in 4Q, against our estimate of 240bps contraction. BUY", target price of Rs 1,585," says IIFL's research report.

Hem Securities on Pfizer, target of Rs 935

Hem Securities has initiated a buy rating on Pfizer with a target of Rs 935 in its research report.

"The company has posted the compounded annual growth rate of 48.42% in bottom line in last four years and is expected to maintain its growth in coming years. The company was well placed to benefit from the growth of Indian Pharmaceutical market, that is expected to grow at 11-12%. It is expected to be valued at USD 20 billion by 2015. The stock at the current market price of Rs 597 will trade 12.27 times to its earnings of Rs 48.67 (TTM) and 1.90 times to its book value of Rs 314.52 and is expected to provide huge upside potential in long-term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 935 in the long -term investment horizon with an appreciation of 56.62%," says Hem Securities' report.

Stock Views on Bharti Airtel, Dishman Pharma, Godrej Consumer

Emkay Global on Bharti Airtel - Target of Rs 952

Emkay Global Financial Services has recommended a buy rating on Bharti Airtel with a price target of Rs 952 in its report.

"Street has raised concerns on large equity issuance (57%) and subsequent EPS dilution of 8-10% in FY10/FY11 (post consolidation of 49% in MTN) which has resulted in stock price correction of 11-12%. We believe that Bharti would offer MTN, an economic interest (equity participation) of 25% in the form of 15% direct stake in Bharti Airtel and remaining through the parent resulting in equity dilution in Bharti Airtel being limited to 38% and EPS dilution to just 4.6% and 1.6% for FY10E and FY11 v/s 8-10% estimated by the street assuming 58% equity dilution. With lower EPS dilution than that expected by street, together with strong long term positives and synergies arriving out of the deal, we continue to rate 'BUY' on Bharti Airtel with target price Rs 952. We recommend investors to use the current overhang as an opportunity to buy into the stock," says Emkay Global Financial Services' report.

Hem Securities on Dishman Pharma - Target of Rs 230

Hem Securities has recommended a buy rating on Dishman Pharmaceuticals & Chemicals with price target of Rs 230 in its research report.

"The company is a leader in CRAM business amongst the largest Indian pharmaceutical companies. Moreover, in global crisis and weak economy outlook, the company performance for the financial year ended March 2009 is quite strong. Though promoters have pledged 10.60% share of their holding and 6.44% of total equity capital, the company seems to continue its growth momentum through its high revenue generating base business and seems to be extremely attractive investment opportunity in the Indian Pharmaceutical space."

"Presently, the stock is trading at Rs 184.35 which is at 10.14 times to its earnings of FY09 of Rs 18.18 and 2.65 times to its book value of Rs 69.59. Since the stock offers good investment opportunity, we ini-tiate a ‘BUY’ signal on the stock with a target price of Rs 230 in medium to long term investment horizon expecting an appreciation of about 25% from the current level of Rs 184.35," says Hem's research report."

Sharekhan on Godrej Consumer - Target of Rs 185

Sharekhan has maintained its buy rating on Godrej Consumer Products, GCPL with a target of Rs 185 in its research report.

"We believe the deal is taking place at attractive valuations for GCPL considering that the same will expand the limited product portfolio of GCPL, improve the growth profile of GSL’s products and result in higher EPS for GCPL’s shareholders. At the current market price of Rs 176 the stock trades at 19.3x its FY2010 earnings and 17.1x its FY2011 earnings (excluding GSL’s financials). We maintain our price target at Rs 185, as we await further information from the management on GSL’s operations. However, the earnings accretive nature of the deal could potentially result in a 4-5% increase in the price target to Rs 192-195. We maintain our 'Buy' recommendation on the stock," says Sharekhan's research report."

Stock views on Power Grid, AIA Engineering, Emco, KSB Pumps

Hem Securities on Power Grid - Target of Rs 105
Hem Securities has recommended a buy rating on Power Grid Corporation of India with a target of Rs 105 in its research report.

"Power Grid Corporation of India has granted investment approval for implementation of `North East - Northern / Western Inter connector-I' Project at an estimated cost of Rs 111.30 billion with commissioning schedule of 54 months for Part A (related to HVDC) and 48 months for part B and C (related to AC) of the transmission system, from the date of investment approval."

"The net sales for the company gone up by 36.07% to Rs 14774.40 million for the Q3FY09 as against the net sales of Rs 10857.70 million for the Q3FY08. The company posted the EBITDA of Rs 12269.50 million for the Q3FY09 as against the EBITDA of Rs 8881.30 million for the Q3FY08 with the growth rate of 38.15%. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 105 in the medium term investment horizon (3- 4 months) with an appreciation of 16%," says Hem Securities' research report.


Hem Securities on AIA Engineering - Target of Rs 178

Hem Securities has reiterated its buy rating on AIA Engineering with a target of Rs 178 in its research report.

"AIA Engineering Limited has a scalable business model, good growth visibility, high operating margin and limited competition. The company has registered a continuous robust growth rate over past few years. As discussed with the management, the Company has a strong order book position of around INR 415 crores which provides a strong visibility to their revenues. We expect the company to outperform in the future and we reiterate “BUY” on the stock with a target of Rs 178," says Hem Securities' report.


KRChoksey on Emco - Target of Rs 36

KRChoksey has maintained its buy rating on Emco with a target price of Rs 36 in its research report.

"Emco Ltd has received five orders worth Rs 550 crore from the state-run Power Grid Corporation of India Ltd for a 765 kilo volt overhead transmission line. The orders also involve supply of galvanised steel towers. In Q3FY09, company’s witnessed drop of 14.6% & 45.7%(YoY) in net sales & PAT to Rs 207.9 crore & Rs 8.2 crore. The topline declined mainly due to intentional delay in deliveries to industrial clients and issues in sourcing of key components. We maintain our BUY rating on the stock with target price of Rs 36, with an upside potential of 38.5% from current levels," says KRChoksey's research report.


KRChoksey on KSB Pumps - Target of Rs 242

KRChoksey has recommended a buy rating on KSB Pumps with a target price of Rs 242 in its research report.

"In Q4CY08, the company’s sales have increased by 33% on a y -o-y basis to Rs 174.7 crore from Rs 131.8 crore. The growth in sales was on account of rise in the revenues from pumps segment by 47% y-o-y.The growth of the pump industry would be driven by the heavy investments being made in the user industries, such as power and petrochemicals."


"The growth of the pump industry would be driven by the heavy investments being made in the user industries, such as power and petrochemicals. However delay in the expansion plans of user industries and volatility in raw material prices going forward can affect the company’s earnings. We recommend a BUY with a target price of Rs 242, implying an upside potential of 17%. At the target price, the stock would be valued at 5.5x CY09E EPS of Rs 43.4," says KRChoksey's research report.