Stock views on Nalco, Dena Bank, Royal Orchid Hotels

IndiaInfoline on Nalco - Target Rs 445

IndiaInfoline is bullish on National Aluminium Company (Nalco) and has recommended buy rating on the stock with a target of Rs 445, in its research report.

"On the daily chart, National Aluminum has given a trendline breakout after closing at its 52-week high. The stock has rallied sharply over the past few weeks holding on to its short-term support trendline. This week, we saw Nalco gaining fresh upside momentum after crossing over its stiff technical resistance levels of Rs 404-407 accompanied by high volumes."

"On Thursday, the stock rallied by 7% in a rangebound market, confirming the bullish set up. The other supportive technical oscillators RSI and Stochastic are exhibiting positive divergence which signifies the up move may extend to the levels of Rs 445. Based on above observations, we recommend high risk traders to buy the stock in the range of Rs 414-422 for target of Rs 440 and Rs 445. It is advisable to maintain a stop loss of Rs 406 on all long positions," says IndiaInfoline research report.

Angel Broking on Dena Bank - Target Rs 104

Angel Broking has recommended a buy rating on Dena Bank, with price target of Rs 104, in its report

"Dena Bank, with a strong CASA ratio of 36.9%, is better placed than peers to protect its NIMs. Post the proposed capital infusion, the Bank's Tier-I ratio will improve to 9.9% by end FY2011E from 6.8% in FY2009 and enable it to maintain its CAR well above 12% levels till FY2012E. We estimate Advances to grow at 16% CAGR over FY2009-12E driving Earnings' CAGR of 15% over the period. At the CMP, the stock is trading at attractive valuations of 0.7x FY2012E ABV. We have valued the stock at its 5-year median P/ABV of 0.9x FY2012E ABV and arrived at a 15-month target price of Rs 104, an upside of 23% from current levels. We Initiate Coverage on the stock with a Buy recommendation," says Angel Broking report.


SKP Securities on Royal Orchid Hotels - Target Rs 108

SKP Securities has recommended a buy rating on Royal Orchid Hotels, with price target of Rs 108, in its report.

"At current market price, Royal Orchid Hotels is trading at EV/EBITDA of 12.0x and 8.0x of FY11E and FY12E EBITDA, respectively. We have valued the stock at 9.5x its FY12E EV/EBITDA (which is inline with its historical average and discount to its peer group). We expect ROHL’s EBITDA to grow at a CAGR of 17.35% over FY09-FY12E. We hereby initiate coverage on ROHL Ltd. and recommend buy rating with a target price of Rs 108 (32% upside) in 15 months," says SKP Securities report.

KRChoksey Views on Bharat Electronics, NALCO, Hindustan Zinc, Ashok Leyland

Bharat Electronics - Target of Rs 770


KRChoksey Research has recommended a buy Bharat Electronics with a target price of Rs 770 in its November 26, 2008 research report. "The revenue of Bharat Electronics increased by 10% (YoY) to Rs 787.72 crore (including other operative income of Rs 7.02 crore) for quarter ended September 2008. On back of rich cash reserves (Rs 307 per share), capacity expansion plans and diversified product portfolio, we give a BUY rating on the stock with target price of Rs 770," says KRChoksey's research report.


NALCO - Target of Rs 225


KRChoksey Research has recommended a buy rating on National Aluminium Company (NALCO) with a target price of Rs 225 in its November 26, 2008 research report. "Going forward, we believe the company is expected to perform better as commodities prices recover. The company is debt free company. It one of the Navratna company and has strong backward integration. Due to strong fundamentals of the company we give a buy with a target price of Rs 225," says KRChoksey's research report.


Hindustan Zinc - Target of Rs 504


KRChoksey Research has recommended a buy rating on Hindustan Zinc with a target price of Rs 504 in its November 26, 2008 research report. "Going forward, we believe the company is expected to perform better as commodities prices recover. HZL is the lowest cost producer of zinc in the world. It is sitting on huge cash and is a debt free company. It is slated to become the largest producer of zinc. Due to strong fundamentals of the company we give a buy with a target price of Rs 504," says KRChoksey's research report.


Mansukh Securities on Ashok Leyland - Target of Rs 25


Mansukh Securities and Finance has maintained its buy rating on Ashok Leyland with a target of Rs 25 in its research report. "Commercial vehicles sales have shown a downward trend in recent past. Moreover, in days to come, Ashok Leyland seems to have a tough stance to match its volumes in the segment."


"The company has recently increased its capacity and has similar plans for future, keeping this in view, the company is expected to carry excess capacity till the time the volumes are not increased. Also the demand for CV is expected to be dependent on factors such as growth in GDP and IIP, trends in interest rates, and availability of bank credit. Considering, the above factors we maintain our BUY rating on the stock by lowering our price target to Rs 25. Higher dividend yield should provide downside protection from current levels," says Mansukh Securities and Finance's research report.