Stock Views on Tata Motors, Infosys Technologies, Balrampur Chini Mills, Aban Offshore

INDIABULLS on TATA MOTORS

INDIABULLS has downgraded Tata Motors from hold to ‘sell’ after the company reported a decline in sales volume over the past few quarters. The broking house expects this trend to continue in the coming quarters, “given the slowdown in the economy, the cautious lending environment and a significant decline in consumer spending.” Indiabulls feels that the biggest challenge for Tata Motors currently is to turn around its Jaguar Land Rover (JLR) business, for which it raised a bridge loan of $3 billion. “Given the tight liquidity scenario and bleak capital markets, Tata Motors is likely to roll over its bridge loan, thereby adding to the company’s finance cost,” says the report. Further, JLR’s sales volume is trending downwards, and given the current economic conditions in the US and Europe, we do not expect volumes to recover in the near term, it adds.

Prabhudas Lilladher on INFOSYS TECH

Prabhudas Lilladher has a ‘reduce’ rating on Infosys Technologies as it feels that the outlook for the company and the software industry is quite weak in the near-term. “While we expect Infosys to perform better than most other players in the industry, we rate the stock ‘reduce’ with a target of Rs 1,246,” says the report. With a difficult FY10E and full-tax FY11E, the two-year earnings CAGR (FY09-11) for the company is unlikely to be over 10-15%, it adds. According to the broking house, the company’s pricing power in fresh contracts would remain under pressure as “pricing behaviour by competition has turned aggressive in new contracts.” While Infosys has seen some weakness in the BFSI domain in the recent past, the outfit expects this weakness to “spread to retail and possibly the manufacturing domains as well.” Of the various service lines, Enterprise Solutions may be worst affected over the next few quarters, according to the management, it adds. The broking house is also expecting another reduction in US dollar guidance by Infosys.

PINC Research on BALRAMPUR CHINI

PINC has downgraded its rating on Balrampur Chini Mills to ‘sell’ as it feels that lower cane crushing would impact the company’s profitability. “Although we remain confident about Balrampur Chini Mills’ business model & efficiency levels and are positive about the turnaround in the sector, we believe that lower cane crushing in FY09 would impact its return ratios (assuming cane price of Rs 140/quintal),” says the report. The outfit expects the company’s revenues for FY09 to rise by 12% to Rs 1,650 crore, aided by higher sugar revenues. “Revenues from sugar sales should grow 12% to Rs 1270 crore as a result of inventory liquidation and higher sugar prices. OPM should dip by 90bps to 21.3% in FY09 on the back of higher cane costs at Rs 140/quintal,” it says. The report, however, does add that if cane prices are maintained at last year’s SAP of Rs 125/quintal, the target price works out to Rs 38 based on FY09E profits of Rs 160 crore.

Ambit Capital on ABAN OFFSHORE

Ambit Capital has maintained a ‘buy’ on Aban Offshore with a revised target price of Rs 1,603 (earlier Rs 1,566), implying an upside of 143% from the current levels. The upward revision comes after the company announced contract renewal of its jack-up ‘Deep-Driller-IV’ (DD-IV) in continuation of expiry of its current contract in December 2008. According to the report, the renewal is for a period of six months and is part of the two six-month options built into the agreement

Stock views on KEC International, Wipro, Infosys

Angel Broking on KEC International - Target Rs 477

Angel Broking has recommended a buy rating on KEC International with a price target of Rs 477 in its research report.

"KEC International (KEC) is a global player in the Power Transmission and Distribution (T&D) network. KEC, which recently enjoyed a good inflow of domestic orders primarily from Power Grid Corporation (PGCIL), is well poised to bag more orders from the domestic markets. Further, KEC derives close to 63% of its revenue from its overseas operations and is expected to clock good growth in this space as well. Thus, KEC is set on a high growth path on the back of healthy order book position, stable Margins (registered in spite of a volatile commodity and currency markets) and diversification into the Railways and Telecom Segments, where the government is set make substantial investments. At Rs 373, the stock is trading at 10.2x FY2010E and 7.8x FY2011E Earnings. We initiate coverage on the stock with a buy recommendation and target price of Rs 477,” says Angel Broking's research report.

PINC Research on Wipro - Target Rs 420

PINC Research has recommended a buy rating on Wipro, with price target of Rs 420, in its report.

"We upgrade our estimates on Wipro from HOLD to BUY recommendation with a target price of Rs 420, an upside of 11%. The stability in pricing in these challenging environment has helped the company to gain a competitive edge over its peers. They are also eyeing the emerging markets for the much needed volume growth. The management believes that the number of ramp downs in projects have seen a significant decline which are positive signs for posting a single digit growth in FY10," says PINC's research report.

PINC Research Infosys - Target Rs 1950

PINC Research has upgraded its rating on Infosys Technologies from sell to buy, with price target of Rs 1950, in its report.

"We upgrade our rating on Infosys from 'SELL' to 'BUY' with a target price of Rs 1,950, an upside of 12%. We believe that the worst is over for USA, which accounts for 60% of the revenues for the major Indian IT vendors. The signs of recovery will help Infosys to post muted single digit growth in terms of revenues. The management also believes that things are improving from their clients’ end which will provide them the much needed volume growth," says PINC's research report.

Stock views on Bank Of Baroda, Bajaj Auto

Karvy Stock Broking on Bank Of Baroda - Target of Rs 295

Karvy Stock Broking has maintained its buy rating on Bank Of Baroda with a price target to Rs 295 in its research report.

"We are revising our FY2009 restructured standard assets from Rs 3.8 billion to Rs 30 billion as we believe that BOB's corporate loan portfolio has deteriorated and many of the bank's corporate customers have requested for restructuring their standard loans. As a result our ABV for FY2009 has been revised downwards to Rs 257 from our earlier estimate of Rs 302 and our FY2010 ABV has been revised to Rs 321 from Rs 368. We are downgrading our price target to Rs 295 from Rs 335 to factor the deteriorating economic environment. We continue to maintain our Buy recommendation," says Karvy Stock Broking's research report.

Sharekhan on Bajaj Auto - Target of Rs 640

Sharekhan has maintained its buy rating on Bajaj Auto with a price target of Rs 640 in its research report.

"We believe that due to the tough environment it will not be very easy for BAL to regain its market share despite the new launches. However, with stronger exports, we expect the company to record a sales growth of 9% in FY2010. Though in future the sales performance will be much dependent on the success of its new launches, the company should be able to clock a moderate sales growth from the next quarter onwards. The short-term outlook continues to be weak, with the present BAL brands not performing as well as expected and the company losing out market share to Hero Honda and the other players."

"Overall, the BAL stock may underperform in the short term on account of the uncertainties and concerns discussed in this note. We believe that the valuation gap with Hero Honda is likely to narrow down as things improve from Q1FY2010 onwards. We maintain our Buy recommendation on BAL with a price target of Rs 640," says Sharekhan's research report.

PINC on Bajaj Auto - Target of Rs 669

PINC Research has recommended a buy rating on Bajaj Auto with a target price of Rs 669 in its research report.

"Over the last two years, Bajaj Auto has disappointed the market with declining volumes. However despite lower volumes, we see profitability of the company to improve from the current levels. We upgrade our recommendation on the stock to ‘BUY’ with a target price of Rs 669 discounting FY10E earnings 10x," says PINC's research report.

Stock views on Shriram Transport Finance, Garware Offshore Services, Great Offshore, Simplex Infra

SKP Sec on Shriram Transport - Target of Rs 247

SKP Securities has recommended an accumulate rating on Shriram Transport Finance Corporation with a price target of Rs 247 in its research report.

"STFC registered more than 60% growth in AUM from Rs 12038 crore in FY07 to Rs 19520 crore in FY08. The growth was mainly achieved due to availability of ready funds to the company. The inflow of funds leveraged company’s brand, customer base, wide reach and strong business model. Going ahead we expect the same factors to drive the growth of AUM to Rs 37619 crore by FY11. STFC being a leader in the financing of the STOs and FTUs, the unique business model will act as a support to survive in the prevailing slowdown and restrict its losses below 2%. We value the stock at 1.50x FY 11E book value implying a price target of Rs 247 (33% upside) in 12 months and recommend accumulate rating on the stock," says SKP Securities' report.

PINC Research on Garware Offshore - Target of Rs 80

PINC Research has maintained its buy rating on Garware Offshore Services (GOS) with a price target of Rs 80 in its research report.

"GOS has timed the market well in the past with its expansion. Going forward, the outlook remains positive for the company as the newer assets should provide the necessary momentum for earnings growth. Also, the newer assets would have a better margin profile. In addition, with a diversified revenue stream to include in chartering and commission sale revenues, the revenue cycle seems relatively insulated. We maintain our 'BUY' recommendation on the stock, with a revised price target of Rs 80 over a 15 month perspective, on the back of higher earnings from new assets and prospects of vessel addition which should provide further fillip to earnings," says PINC's research report.

PINC Research on Great Offshore - Target of Rs 300

PINC Research has maintained its buy rating on Great Offshore with a price target of Rs 300 in its research report.

"GOFF is well poised to weather the slowdown in the offshore service space by having a well diversified business model, minimal capex and leverage as well as high visibility of revenues. 75% of GOFF’s fleet are contracted on long term charters thereby locking in assets for assured cash flows and enhancing revenue visibility. Also, most of its assets are contracted with ONGC, which should carry out upstream exploration irrespective of where oil prices are headed. This minimises risk of contract cancellations and guarantees revenue streams. We maintain our 'BUY' recommendation on the stock, with a price target of Rs 300 over a 15 month perspective, in light of high revenue visibility, low leverage and assured cash flows from government contracts," says PINC's research report.

Motilal Oswal on Simplex Infra - Target of Rs 296

Motilal Oswal has maintained its buy rating on Simplex Infrastructures with a price target of Rs 296 in its research report.

"In 4QFY09 ytd, Simplex has witnessed order intake of Rs 15 billion in 4QFY09, and current order book is estimated at Rs 100 billion (similar to December 08 levels), book to bill ratio of 2.2xFY09 revenues. Order intake in 4QFY09 comprises of segments like industrials, power, urban infrastructure (Delhi, Bangalore Metro etc).

We estimate earnings CAGR of 25.6% during FY09-FY11, driven by 14% revenue CAGR and lower interests cost during the same period. Maintain Buy with price target of Rs 296/sh (106% upside), based on PER of 8xFY10," says Motilal Oswal's research report.

Stock Views on Petronet LNG, SKF India, Piramal Healthcare

PINC Research on Petronet LNG, target of Rs 66

PINC Research has recommended a buy rating on Petronet LNG Ltd with a price target of Rs 66 in its research report.

"Petronet LNG Ltd. (PLL) accounts for 23% of natural gas supply of India and boasts of a sovereign parentage of GAIL, IOCL, ONGC and BPCL. Considered as an Indian pioneer in import distribution, it regasifies 6.5 million mtpa of imported LNG from its facility in Dahej, Gujarat and is a major supplier to GAIL’s HVJ gas pipeline. The capacity expansions at Dahej should enable PLL volume growth by 13% in FY10 to 7.4 million mt and 24% in FY11 to 9.2 million mt garnering scale in earnings. Hence we initiate coverage on the stock with a ‘BUY’ recommendation and a price target of Rs 66 on a 24 month investment perspective," says PINC's research report.


LKP Shares on SKF India, target of Rs 190

LKP Shares has recommended a buy rating on SKF India with an 18-month price target of Rs 190 in its research report.

"SKF India is the 53.5% subsidiary of the Swedish bearing giant and is the largest bearing producer in India. It derives 90% of its revenues from bearings comprising of ball and hub bearings, deep groove ball bearings, cylindrical roller bearings and tapered roller bearings. The balance 10% of revenues comes from its four new technology platforms like seals, lubrication systems, mechatronics and services. SKF India being the industry leader controls a 30% share in the Rs 50 billion bearing market in India."

"SKF India with a strong balance sheet trades at 7xCY'09E and 5.7xCY'10E and we believe that a 15% correction in the stock price from current levels would be a good opportunity for gaining an entry into the stock with an 18-month price target of Rs 190. Over a longer time frame a revival in its key user industries could propel the stock to Rs 240 over a two-year time frame. 'Buy'," says LKP Shares' report.


Sharekhan on Piramal Healthcare, target of Rs 358

Sharekhan has maintained its buy rating on Piramal Healthcare with a price target of Rs 358 in its research report.

"In an effort to reduce costs and restructure its assets in a more efficient manner, Piramal Healthcare (Piramal) has decided to shut down its custom manufacturing facility at Huddersfield, UK (a part of Avecia) and consolidate its custom manufacturing operations at its other sites at Ennore (near Chennai), Digwal (near Ahmedabad) and Morpeth, UK. Even though the closure of the UK site would lead to a onetime hit in the FY2009 financials of the company, the move is in the long-term interest of the company, as it would result in the elimination of redundancies, cost savings, efficiency in operations and an overall improvement in profitability."

"With a presence across the entire contract research and manufacturing services (CRAMS) value chain, strong customer relationships and a favourable operating environment characterised by increased outsourcing, we expect Piramal’s custom manufacturing business to perform robustly in the future. We maintain our Buy recommendation on the stock with a price target of Rs 358, " says Sharekhan's research report.

Stock views on Ashok Leyland, Punjab National Bank, Deepak Fertilizers

Angel Broking on Ashok Leyland - Target Rs 27

Angel Broking has maintained its accumulate rating on Ashok Leyland with a target of Rs 27.

"For 4QFY2009, Ashok Leyland (ALL) reported 52.5% yoy decline in Net Sales to Rs 1,218 crore, which was in line with our expectation of Rs 1,217 crore. Net Profit declined 70.5% yoy to Rs 53.3 crore. We estimate ALL to clock EPS of Rs1.7 in FY2010 and Rs 2.4 in FY2011. We reiterate an 'Accumulate' on the stock to play out the turn in the economic and commercial vehicle (CV) cycle, with a target price of Rs 27. Majority of the factors that drive freight demand and consequently M&HCV demand are expected to turn positive in the medium term. We expect the CV manufacturers to benefit from the expected economic recovery in 2HFY2010," says Angel Broking's research report.

IIFL on Punjab National Bank - Target Rs 754

IIFL has maintained its add rating on Punjab National Bank with a target price of Rs 754 research report.

"PNB’s 4QFY09 net profit was up 59% YoY to Rs 8,656 million, while full-year FY09 net profit was up 51% to Rs 31 billion. Rise in operating expenses and provision charges was more than offset by strong growth in interest and non-interest income. NPLs fell sharply even as the bank restructured 2.6% of its loans, taking problem loans to 4.4% as at end-FY09 from 2.7% as at end-FY08. The bank made aggressive provision for loan-loss charges, which increased 3x for full-year FY09, raising the NPL coverage to 91%, the highest in our coverage universe. We are upgrading our FY10 profit estimates by 8%, and are now forecasting 10% growth in profits. We maintain 'ADD', target price of Rs 754," says IIFL's research report.

PINC Research on Deepak Fertilizers - Target Rs 98

PINC Research has recommended a buy rating on Deepak Fertilizers (DFPCL), with a price target of Rs 98, in its report.

At the CMP, DFPCL is trading at a P/E of 6.2x and EV/EBITDA of 3.5x FY10E. Favourable fertiliser policy & expected increase in availability of gas post RIL KG basin development, augurs well for DFPCL. We maintain our ‘BUY’ recommendation with a target price of Rs 98, which implies a P/E of 7x FY10 earnings that is less than 5 years historical median P/E of 7.4x, says PINC's research report.

Stock views on Transformers & Rectifiers, State Bank of India, Voltas

India Capital Markets on Transformers & Rectifiers - Target Rs 160


India Capital Markets has recommended a buy rating on Transformers and Rectifiers (India) with a target price of Rs 160 in its research report. "TRIL’s revenues from furnace transformers have risen from Rs 205 million during fiscal 2005 to Rs 450 million during fiscal 2008. The Company has registered a top line growth of 41.65% y-o-y. The Company has also been able to achieve a growth of 26.25% at the net profit level. With the metal prices coming down we expect the net profit margin to stabilize around 9%-10% in the coming years. We recommend BUY with a target price of Rs 160 based on a P/E multiple of 4x its FY 10 earnings. We believe the company offers decent opportunity to play on the India T&D sector story," says India Capital Markets' research report.


Sharekhan on State Bank of India - Target Rs 1516

Sharekhan has maintained its buy rating on State Bank of India, SBI with a price target of Rs 1,516 in its research report. "During the year-to-date period in FY2009, the SBI has witnessed a strong 40%+ growth in its core fee income. This could be attributed to the strong credit growth coupled with better product offering to its clients due to technological advancement. SBI is confident of maintaining this high growth momentum in its core fee income in the quarters to come. The bank has restructured around Rs 2,000 crore worth of loans during the current year till date period. We maintain our Buy recommendation on the stock with a price target of Rs 1,516," says Sharekhan's research report.


PINC Research on Voltas - Target Rs 55

PINC Research has recommended a buy rating on Voltas with a price target of Rs 55 in its research report. "Voltas Ltd has a high cash generating business model. Cash from operation has been positive in the last three years. Cash & Bank balances and current investments were Rs 3 billion & Rs 2.3 billion respectively at the end of FY08. Robust order book for MEP/HVAC segment with significant presence in Middle East market coupled with diversified business model, Voltas has the potential to post revenues at a CAGR of 21% for the next two years. Hence, we recommend a ‘BUY’ with a price target of Rs 55 on a 12 month investment perspective," says PINC's research report.

Stock views on Infosys Technologies, Simplex Infrastructures

PINC Research on SIMPLEX INFRA
PINC Research has initiated coverage on Simplex Infrastructures (SIL) with a ‘buy’ rating. According to PINC, SIL has exhibited a strong growth metrics over the past five years. The company’s revenues have grown at a compounded annual growth rate of roughly 45% over FY04-08, while its net profits have grown around 75% during the same period. “We believe the company having garnered proficiency in technical know-how and execution skills across diverse sectors, is presently in the midst of a steep growth trajectory. Further, a robust & diversified order book of approximately Rs 20,700 crore (2.5 times FY09 estimated revenues) provides earnings visibility over the next 18-20 months,” Pinc Research said in its report. The broking house believes that the SIL stock is largely undervalued and doesn’t capture the fair value of its extensive execution capabilities and new business initiatives.


JP Morgan on INFOSYS TECHNOLOGIES

JP Morgan has assigned an ‘overweight’ rating to Infosys Technologies, following its third quarter numbers, which the brooking house has termed as ‘decent’. The Bungler-based company’s FY09 guidance was largely unchanged in rupee and constant currency terms but reduced by 1-2% in US dollar terms due to currency movements. The broking house said the software bellwether’s Q4FY09 (January-April) guidance was weak as expected with US dollar revenue growth of -4-0% quarter-on-quarter and EPS decline of 2%. “We believe that Infosys results are largely in line with expectations. While business might remain weak near term, offshoring trend remains on track in our view and we expect acceleration in H22009 as IT budgets get closed,” the report said. The outfit remains fundamentally positive on Infosys, given offshoring trend, strong execution track record and high corporate governance standards.

Stock views on NIIT, 3iInfotech

PINC Research on 3iINFOTECH
The outlook for the fiscal year 2009 remains unchanged as current order book of Rs13.7bn provides visibility. We have estimated organic growth rates of ~15%. We believe that 3i's exposure to the BFSI vertical, a leveraged balance sheet and its ability to fund new growth would continue to be concern areas in the coming quarters.

Angel Broking on NIIT

We expect NIIT to clock a CAGR of 16.6% and 21.4% in top-line and bottom-line respectively, over FY2008-10E. Top-line growth to be driven by the ILS Business, which is expected to grow at a CAGR of 31.2% over the same period. We expect EBITDA Margins to go up to 12.3% in FY2010E as against 10.3% in FY2008, led by operating leverage in the ILS business.

Stock views on Texmaco, Amtek Auto, ICSA

PINC Research on Texmaco - Target Rs 65

PINC Research has maintained its buy rating on Texmaco with a target of Rs 65 in its research report. "Texmaco’s Q3FY09 results were in line with expectations as net sales rose by 3.6% YoY due to the benefit of excise reduction to Rs 1.6 billion. The growth was led by the Heavy Engineering segment (wagons, process and hydromechanical equipment) which grew 13% to Rs 1.8 billion. We maintain our ‘BUY’ recommendation with a 12-month price target of Rs 65," says PINC's research report.


Angel Broking on Amtek Auto - Target Rs 110

Angel Broking has maintained its buy rating on Amtek Auto with a target of Rs 110 in its research report. "For 2QFY2009, Amtek Auto (AAL) reported 24.6% de-growth in Net Sales to Rs 241.3 cr (Rs 319.9 cr). The company reported a substantial 86.3% yoy decline in Net Profit to Rs 5.4 cr (Rs 39.2 cr) for the quarter. We maintain a Buy on the stock with a revised 18-month Target Price of Rs 110, which values the company at 0.5x FY2010E BV (adjusted for FCCB interest impact)," says Angel Broking's research report.


India Capital Markets on ICSA - Target Rs 150

India Capital Markets has maintained its buy rating on ICSA India with a target of Rs 150 in its research report. "ICSA reported a modest sequential top line growth (lowest since Q1 08) of 8.8% to Rs 3.04 billion. Revenue from the infrastructure business increased by nearly 39% while embedded solution dipped by 5%. PAT margins were further dented by increase in interest cost, though the effective decline was over 200 bp after factoring a 200 bp respite in the tax provision."

"The ongoing slowdown in the economy is bound to affect the power distribution utility given the fall in demand across industries. Our revised target price is Rs 150 at which the stock will trade at FY10E P/E of 3x and EV/EBITDA of 2x. We maintain BUY," says India Capital Markets' research report.

Stock views on Bharti Airtel, Triveni Engineering, VST Tillers, Time Technoplast

Anand Rathi on Bharti Airtel - Target of Rs 850

Anand Rathi Securities has initiated a buy rating on Bharti Airtel with a target price of Rs 850 in its November 22, 2008 research report. "We believe Bharti offers a rare combination of high quality, solid and visible earnings growth at attractive valuations. The company is best placed to ride regulatory bumps, thanks to its superior scale and strong balance sheet. We initiate with a Buy and Sep ’09 target price of Rs 850," says Anand Rathi's research report.

PINC Research on Time Techno - Target of Rs 50

PINC Research has maintained its buy rating on Time Technoplast with a target of Rs 50 in its November 21, 2008 research report. "We have moderated our outlook primarily due to the deteriorating economic conditions. Even though feedstock prices continue to ease, we believe the bigger threat to earnings is from lower offtake from the auto sector. We remain confident of the company’s ability to sustain margins in the 19-20% band and maintain our ‘BUY’ recommendation, but have revised downwards our price target to Rs 50 to reflect the lower earnings," says PINC's research report.

PINC Research on Triveni Engineering - Target of Rs 45

PINC Research has upgraded its rating on Triveni Engineering to buy with a target of Rs 45 in its November 21, 2008 research report. "Triveni Engineering and Industries Ltd. (TEIL) reported a YoY growth of 41% in net sales to Rs 4.3 billion for Q4FY08. Net profits surged by 5.4x to Rs 270 million. Although we expect the profitability to be impacted by higher cane price, we believe the same would be partially compensated by liquidation of low cost sugar of SS 07-08 and better distillery product prices. Hence, we upgrade our recommendation to ‘BUY’ with a price target of Rs 45 (valuing at 6.5x) on a one year investment perspective," says PINC's research report.

Sunidhi Securities on VST Tillers - Target of Rs 135

Sunidhi Securities & Finance has recommended a buy rating on VST Tillers Tractors with a target of Rs 135 in its November 21, 2008 research report. "During Q2FY09 OP & NP margins stood at 16.7 and 10% against 13.7 and 7.2% respectively. During H1FY09 OP margin has moved up from 13.1% to 14.6% and net margin surged from 7% to 8.3%. VSTTL expects to continue its progress in establishing a sizeable market share for power tillers in states such as West Bengal, Karnataka, Orissa and Andhra Pradesh during the coming years. This apart, the prospects of exporting power tillers appear to be bright."

"During FY09, sales are expected to go up by 40% to Rs 260 crore and net profit by 45 per cent to Rs 20.9 crore, which would yield an EPS of Rs 36. We recommend BUY with a target of Rs 135 in the medium term. The 52-Week high and the low of the share has been Rs 259/88," says Sunidhi Securities & Finance's research report.

Stock Views on Infotech, Indraprastha Gas, Patel Engg

PINC Research on Infotech - Target of Rs 58
PINC Research is bullish on 3i Infotech and has maintained buy rating on stock with a target of Rs 58, in its November 11, 2008 report, "At the CMP of Rs 43, 3i is trading at a P/E of 3.0x and EV/EBIDT of 3.8x its FY09 estimates. We believe that 3i’s exposure to the BFSI vertical, a leveraged balance sheet and its ability to fund new growth would continue to be concern areas in the coming quarters but we believe the recent de-rating of valuations factors in these concerns to a large extent. Hence, we believe that at current levels the stock offers value vis-a-vis growth rates and hence we maintain our ‘BUY’ recommendation with a 12 month price target of Rs 58," says PINC's research report.

KRChoksey on Patel Engg - Target Rs 347

KRChoksey Research has maintained its buy rating on Patel Engineering, with price target of Rs 347. "At the CMP of Rs 169 the stock is trading at a forward P/E of 7.3x, based on its FY09E EPS and 6.0x its FY10E EPS. We anticipate slowdown in order inflow and an increase in interest expense, which will impact the net profit margins of the company. We therefore downgrade our target price from Rs 501 to Rs 347, however, maintaining a BUY rating," says KRChoksey's research report.

Parag Parikh on Indraprastha Gas - Target of Rs 154.5

Parag Parikh Financial Advisory Services has recommended a buy rating on Indraprastha Gas with a target price of Rs 154.5 in its November 1, 2008 research report. "For the quarter ended 30th September, 2008 Indraprastha Gas Limited (IGL) has posted 24.5% growth in net sales to Rs 2,166.7 million as compared to Rs 1,740.96 million for the quarter ended 30th September 2007. We have valued the company on DCF as well as PE multiple basis and recommend a BUY for the scrip at the current levels with a price target of Rs 154.5 giving an upside of 49.20%. At our target price, the stock will trade at 11.5x FY09 earnings," says Parag Parikh Financial Advisory Services' research report.

Stock views on HEG, Nava Bharat Ventures, Dishman Pharma, Gateway Distriparks

PINC Research on HEG - Target of Rs 205

PINC Research has maintained its buy rating on HEG with a target of Rs 205 in its November 5, 2008 research report. "HEG reported a decent 15% YoY growth in its revenues for Q2FY09 which stood at Rs 3 billion. A Rs 300 million provision for losses on account of mark-to-market on forex loans, dampened the profits, which fell by 25% on YoY basis. We believe that HEG would continue to maintain its margin and incremental volumes would drive its profit growth going forward."

"At the CMP of Rs 149, it is trading at P/E of 3.4x and EV/EBDIT of 2.3x discounting its FY10 estimates. We believe this is at substantial discount to its fair value, which also includes 36% stake in BEL. Hence we maintain ‘BUY’ recommendation on the stock with a revised price target of Rs 205 on a 12 month investment horizon," says PINC' research report.

PINC Research on Nava Bharat Ventures - Target of Rs 190

PINC Research has maintained its buy rating on Nava Bharat Ventures with 12-month price target to Rs 190 in its November 7, 2008 research report. "Nava Bharat Ventures Ltd. (NBVL) once again reported an excellent set of results in Q2FY09 as it posted a 157% increase in revenues, at Rs 4 billion, with 70% contribution from the ferro alloy division alone. Net profits grew by 127% to Rs 1.2 billion."

"At the CMP of Rs110, the stock is trading at a P/E of 2.3x and EV/EBIDT of 1.2x its FY10E earnings We believe these are very attractive valuations for a company with a very robust business model where the company can switch between power and ferro alloys production depending on the market conditions. Hence, we maintain our ‘BUY’ recommendation on the stock but revise our 12-month price target to Rs 190," says PINC's research report.

Reliance Money on Dishman Pharma - Target Rs 185

Reliance Money has recommended a buy rating on Dishman Pharmaceuticals and Chemicals, with a 12-month price target of Rs 185, in its report dated October 31, 2008. "Dishman Pharmaceuticals & Chemicals reported 35% growth in its consolidated revenues to Rs 2520 million during Q2FY09, which was in line with our expectations. To capture the market wide correction in the valuations, we are revising down our target price to Rs 185 (i.e 8x FY10EPS) from our earlier DCF based target price of Rs 320. Thus, we maintain our rating on Dishman Buy with revised target price of Rs 185," says Reliance Money's report.

India Capital Markets on Gateway Distriparks

India Capital Markets has maintained its buy rating on Gateway Distriparks, in its report dated October 31, 2008. "Gateway Distriparks Ltd (GDL) has reported impressive Q2FY09 numbers in revenues on back of increase in volume growth by 13% on qoq basis. On standalone basis GDL’s revenues grew by 32% on yoy to Rs 554 million in Q2FY09 on the back of rationalization of cost structure at Mumbai CFS. GDL overall handled 110,175 TEUs (up by 22% on yoy & 13% on qoq). GDL has deployed 12 rakes which are running on domestic and EXIM routes which will enhance to total of 40 rakes in next 18 months. Snowman’s performance has improved on operational level. We remain positive on the stock, but recent global worsening financial conditions may slow down the export – import (EXIM) trade. We continue to remain BUY on the stock," says India Capital Markets' research report.

PINC Research on Triveni Engineering, Deepak Fertilizers, Time Techno

Triveni Engineering - Target of Rs 45
PINC Research has upgraded its rating on Triveni Engineering to buy with a target of Rs 45 in its November 21, 2008 research report. "Triveni Engineering and Industries Ltd. (TEIL) reported a YoY growth of 41% in net sales to Rs 4.3 billion for Q4FY08. Net profits surged by 5.4x to Rs 270 million. Although we expect the profitability to be impacted by higher cane price, we believe the same would be partially compensated by liquidation of low cost sugar of SS 07-08 and better distillery product prices. Hence, we upgrade our recommendation to ‘BUY’ with a price target of Rs 45 (valuing at 6.5x) on a one year investment perspective," says PINC's research report.

Deepak Fertilizers - Target Rs 80

PINC Research has recommended a buy rating on Deepak Fertilizers, with price target of Rs 80, in its report dated November 7, 2008. "Deepak Fertilisers and Petrochemicals Corporation (DFPCL) posted net sales of Rs 3.8 billion in Q2FY09 (+ 67% YoY). Revenues from chemical segment jumped by 63% to Rs 2.5 billion due to price & volumes increase in AN (Ammonium Nitrate) and fertilisers along with increased trading revenues. Sales of manufactured fertiliser surged by 4x to Rs 586 million pushing fertiliser sales up by 71% to Rs 1.2 billion. Consequently, net profit surged by 91% to Rs 418 million."

"At the CMP of Rs 59, DFPCL is trading at a P/E of 3.7x, EV/Sales of 0.6x and EV/EBIDT of 2.6x discounting its FY10 estimates. Spike in chemical prices, favorable fertiliser policy and expected increase in availability of gas augurs well for DFPCL. Accordingly, we expect higher sales volumes of methanol and fertilisers in FY10. With the recent correction in its stock price, DFPCL is available at attractive valuations. Hence we revise our recommendation upwards to ‘BUY’ with a target price of Rs 80 on a time horizon of 6-12 months. Our target price implies a PE of 5x FY10E earnings," says PINC's research report.

Time Techno - Target of Rs 50

PINC Research has maintained its buy rating on Time Technoplast with a target of Rs 50 in its November 21, 2008 research report. "We have moderated our outlook primarily due to the deteriorating economic conditions. Even though feedstock prices continue to ease, we believe the bigger threat to earnings is from lower offtake from the auto sector. We remain confident of the company’s ability to sustain margins in the 19-20% band and maintain our ‘BUY’ recommendation, but have revised downwards our price target to Rs 50 to reflect the lower earnings," says PINC's research report.

Stock Views on Everest Kanto, PNB, Dishman Pharma

PINC on Everest Kanto - Target Rs 210
PINC Research has maintained its buy rating on Everest Kanto Cylinder with a target of Rs 210 in its October 24, 2008 research report. "Everest Kanto Cylinder Ltd’s (EKC) Q2FY09 results were in line with expectations as it reported a 73% YoY growth in net sales to Rs 2.2 billion on back of volume growth and full quarter contribution from CP Industries. OPM expanded by 72bps to 31.8% while net profits rose by 52% to Rs 432 million."

"The stock trades at an EV/Sales of 1.4x and EV/EBIDTA of 5.2x FY10 estimates. Robust demand for CNG cylinders coupled with growing contribution from lucrative jumbo cylinders business is expected to provide sustained revenue growth and higher margins in the coming quarters. Thus, we maintain our ‘BUY’ recommendation with an 18-month price target of Rs 210," says PINC's research report.

PNB - Target Rs 627

Karvy Stock Broking has recommended a buy rating on Punjab National Bank (PNB) with a target of Rs 627 in its October 21, 2008 research report. "During 2QFY09, we expect the bank would its deposit and advances by 19.5% and 20% (Y/Y) respectively. We estimate NII to grow by 14.8% (Y/Y) to Rs 14.8 billion. At current price the stock quotes at 1.2x adjusted book value FY10, we value the bank at Rs 627 per share at 1.46x ABV FY2010. We rate the stock as a BUY with a target price of Rs 627," says Karvy Stock Broking's research report.

Dishman Pharma - Target Rs 250

Karvy Stock Broking has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a target of Rs 250 in its October 29, 2008 research report. "The net revenues for the quarter reported at Rs 2.52 billion with 35.1% y-o-y and 6.8% q-o-q growth rate, against our estimates at Rs 2.43 billion. The net profits for the quarter before exceptional items stood at Rs 339.87 million. The company maintains its guidance of reporting Rs 10500 million revenues in FY09 with 23% to 24% margins at EBITDA level and operational PAT to the tune of Rs.1500mn."

"We maintain our revenue and earnings estimates for FY09E & FY10E. We expect revenues and earnings to grow at a CAGR of 31.4% and 27% from FY08 to FY10E driven primarily from the high margin CRAMS segment. The stock is currently available at P/E of 6.9x on FY10E basis. On account of compressed valuations, we downgrade our PE multiple from 13.1x to 10.5x on FY10E diluted EPS at Rs 23.6 and revise our price target downwards by 24% to Rs 250. We continue to rate the stock as a "BUY," says Karvy Stock Broking's research report.

Stock Views on Procter and Gamble, Havells India, MERCK

India Infoline on PROCTER & GAMBLE - Target RS 901

India Infoline has recommended a ‘buy’ rating on Procter & Gamble with a one-year price target of Rs 901 after factoring in the 25% yearon-year growth in the net sales of the company and 42.50% rise in net profit. “Procter & Gamble registered 24.8% YoY growth in reve-nues at Rs 1.9 billion, led by strong growth in the health and hygiene segments,” says the report adding that the “feminine hygiene segment recorded its highest ever turnover of Rs 970 million; a growth of 29.5% YoY.” The report also notes that “margins remain under pres-sure due to sharp rise in raw material cost and adspend. However, the report adds that the sharp decline in overhead costs restricts further margin erosion. The broking house also feels that due to low penetration level and low per capita consumption, healthcare and feminine hygiene categories have a tremendous potential to grow. According to the report, the company has set up two new healthcare plants in Baddi with an investment of Rs 600 million to meet increasing demand for its products. With the additional contribution from the new plants, the broking outfit expects the overall profitability to improve going forward.

PINC Research on HAVELLS INDIA - Target RS 230

PINC has maintained its ‘buy’ rating on Havells India after the com-pany reported a consolidated net loss of Rs 250 million for the second quarter of the current financial year. The broking house feels that the company’s consolidated Q2FY09 results were ‘below expectations owing to losses in Sylvania.”. According to the report, Sylvania re-ported a 1% decline in net sales in euro terms, however, a 19% rupee depreciation helped net sales grow by 18% to Rs 8.5 billion. The decline in euro sales was a result of a 6% decline in European markets, it adds. PINC, however, notes that on a standalone basis, net sales rose by 17.5% to Rs 5.8 billion led by cables & wires segment (18% YoY), switchgears (18% YoY) and electrical durables (36% YoY).

LKP Shares on MERCK - Target Rs 400

LKP Shares has recommended a ‘buy’rating on Merck on account of factors like the company is trading at book value and has a dividend yield of more than 7%. The broking house has set a oneyear price target of Rs 400 for the MNC drug major. According to the outfit, bulk actives like Vitamin E, Oxynex and Guaiazulene account for 20% of the company’s revenues. “With the company increasing capacities of Oxynex by seven times, the next fiscal should see significant export volumes,” it adds.

Stock Views on Balrampur Chini, Suzlon Energy, GE Shipping

HDFC Securities on Balrampur Chini - Target of Rs 126
HDFC Securities has maintained its buy rating on Balrampur Chini Mills with a target of Rs 126 in its October 8, 2008 research report. "We have valued the stock on 7x EV / EBIDTA for CY10E (9.6x CY09E), with a target price of Rs 126, an upside of 90% over the CMP. Our bull case target is Rs 188 (upside of 184%) and bear case target price is Rs 77 (upside of 16% from current levels). We have based our valuation on a) Uptrend in sugar cycle resulting in higher realisation for sugar and by products b) Lower interest and deprecation burden c) Strong EPS growth of Rs 4.7 to Rs 9.8 from CY08E to CY10E at a CAGR of 44%. We maintain our Buy rating and target price of Rs 126 on the stock," says HDFC Securities' research report.

Nirmal Bang on Suzlon Energy - Target of Rs 194

Nirmal Bang has assigned a buy rating on Suzlon Energy with a target of Rs 194 in its October 7, 2008 research report. "We expect Suzlon to report a CAGR of 38.5% during FY08 to FY12E in net sales on the back drop of strong order book position and significant expansion plans of the company. These coupled with unprecedented demand for wind energy will drive growth for the company going forward. We expect Suzlon to report net profit CAGR of 54.7% during FY08 to FY12E. We assign a buy rating on the stock with the target price of Rs.194.0 per share which is 12X FY10 Diluted EPS of Rs 16.16 implying an upside of 52.6% from current levels," says Nirmal Bang's research report.

PINC Research on GE Shipping - Target of Rs 407

PINC Research has recommended a buy rating on Great Eastern Shipping Company with a target of Rs 407 in its October 13, 2008 research report. "Recently, its wholly owned subsidiary Greatship (India) Ltd. (GIL) formed a joint venture with Norway based DOF Subsea (world’s leading subsea project player) to explore opportunities in deep sea projects off the east coast of India. We believe that its expansion will improve the quality of earnings by enhancing the presence of offshore segment to total earnings."

"Based on SOTP calculations, we have arrived at a fair value of Rs 582 per share in FY10. We have further discounted the fair value by 30% to reflect trough valuations. Hence, we initiate coverage with a ‘BUY’ recommendation with a price target of Rs 407 on an 18 month investment perspective," says PINC's research report.

Stock Views on C C Constructions, Rico Auto, LT

PINC Research on C & C Constructions - Target of Rs 170
PINC Research has maintained its buy rating on C and C Constuctions with a target of Rs 170 in its October 8, 2008 research report. "At the CMP of Rs 120, C&C trades at a P/E of 3.1x and EV/EBIDT of 3.2x its FY10E earnings. We value C&C’s core business operations at Rs 130 (3.3x FY10E EPS of Rs 38.6) and its 49% stake in Kurali Kiratpur BOT at Rs 40 per share. Thus, on a SOTP basis we arrive at Rs 170 per share as the fair value of the stock. Hence, we maintain our ‘BUY’ recommendation on the stock with a revised 12-month price target of Rs 170," says PINC's research report.

Angel Broking on Rico Auto - Target of Rs 18

Angel Broking has upgraded its rating on Rico Auto from neutral to accumulate with a target of Rs 18 in its October 3, 2008 research report. "At current levels, Rico is reasonably valued compared to its peers. Rico's appetite for organic growth appears high, but the pace may be slower than expected due to slow down in the Automobile sector and overseas market. Nonetheless, news flow on growth initiatives and fair valuations, makes us positive on the stock. We assign a Target multiple of 2.5x FY2010E EV/EBITDA and 6x FY2010E consolidated Earnings to the stock. We upgrade the stock to Accumulate from Neutral, with a Target Price of Rs 18," says Angel Broking's research report.

ULJK Securities on L & T - Target of Rs 1270

ULJK Securities has recommended a buy rating on Larsen and Toubro (L&T) with a target of Rs 1270 in its October 13, 2008 research report. "We measure the L&T standalone using the price earnings multiple methodology. On standalone basis we understand the company will grow its revenue at a CAGR of 30% by FY 2010E. The net profit of the company will grow to Rs 35,247 million in FY 2010E registering an EPS of Rs 60.23 for the year. The target price of Rs 1,270 per share encompasses a subsidiary valuation of Rs 186 per share. Further more, demerger of L&T Finance, L&T IDPL and L&T IT will unlock the value from the consolidated L&T, We assign buy rating to L&T," says ULJK Securities' research report.

Brocking House views on Midcap IT - Sonata Software, Mastek

Parag Parikh views on Sonata Software - Target of Rs 44

Parag Parikh Financial Advisory Services has maintained its buy rating on Sonata Software with a target of Rs 44 in its October 15, 2008 research report. "Sonata Software has reported extremely good results for the 2nd quarter of FY09. Overall, the results have increased our confidence on the company. Factoring the robust Q2 results and the changed currency scenario, we are increasing our earnings estimate for FY09 from Rs 6.25 to Rs 7.25 per share. We maintain our BUY call on the scrip, with a target of Rs 44 based on 6x FY09E (117% Upside)," says Parag Parikh Financial Advisory Services' research report.

PINC Research Views on Mastek - Target of Rs 287

PINC Research has recommended a buy rating on Mastek with a revised 12 month price target of Rs 287 in its October 14, 2008 research report. "Mastek Ltd. (Mastek) reported a soft quarter as net sales in USD terms slid 4.5% QoQ to USD 57.9 million due to a 7% depreciation of the GBP against the USD. The quarter enabled a net profit increase of 6.8% to Rs 412 million."

"At the CMP of Rs 225, Mastek is trading at a P/E of 3.9x and EV/EBIDT of 2.3x its FY09E. While a weak INR should help it post robust growth in FY09, the growth rates would be under pressure and thus FY10 earnings growth could be capped, though it is too early so say that conclusively. While we have downgraded our growth outlook, we still expect Mastek to post a double digit earnings CAGR (FY08-10), which in the back drop of the recent correction in stock price leaves room for a marked upside, despite a sectoral de-rating and earning uncertainty. Hence, we maintain our ‘BUY’ recommendation with a revised 12 month price target of Rs 287. (prev. Rs 514)," says PINC's research report.

Stock Views on Ranbaxy Laboratories, Rain Commodities, Lupin

Angel Broking on Ranbaxy Laboratories - Target of Rs 500


Angel Broking has maintained its buy rating on Ranbaxy Laboratories with a target of Rs 500 in its September 18, 2008 research report. "we remain positive on Ranbaxy in the long term and maintain a Buy on the stock with a SOTP Target Price of Rs 500, wherein the core business fetches Rs 365 and Rs 135 would account for the FTF opportunities and cash lying on the Balance Sheet," says Angel Brokings' research report.



PINC Research on Rain Commodities - Target of Rs 300


PINC Research has recommended a buy rating on Rain Commodities with 12-month target of Rs 300 in its September 29, 2008 research report. "At the CMP of Rs 186, the stock trades at an EV/EBIDT and P/E of 4.3x and 2.8x its CY09E earnings. We expect the strong predictability of demand & margins, coupled with visibility of revenues and the operating leverage of the company’s business model to enable it to capitalise on the trend of pricing advantage moving in favour of CPC manufacturers. Hence, we initiate coverage with a ‘BUY’ recommendation, with a price target of Rs 300 on an investment horizon of 12 months," says PINC's research report.



Motilal Oswal on Lupin - Target of Rs 933


Motilal Oswal has maintained its buy rating on Lupin with a target of Rs 933 in its September 23, 2008. "Lupin is currently valued at 15.1x FY09E and 11.3x FY10E core earnings. We believe that the stock has the potential of getting rerated given the differentiated business model of the company. If the current INR v/s the USD rate sustains (@ Rs 46/USD), we expect an upside to our estimates. We reiterate Buy with a price target of Rs 933 (28% upside). Earlier-than-expected competition for Suprax (in US) and significant currency appreciation, are the key risks to our positive stance," says Motilal Oswal's research report.