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.

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 Idea Cellular, Marico, Bharti Airtel

IIFL on Idea Cellular - Target of Rs 112

IIFL has recommended a buy rating on Idea Cellular with a 12 month target of Rs 112 in its September 18, 2008 research report. "Idea Cellular is yet to receive the USD 640 million investment from the private-equity deal done in May this year, and the rupee’s depreciation against the USD will result in a gain exceeding Rs 2 billion for Idea. In FY08, Idea managed its FX exposure better than peers. Idea also sported the best asset turnover, highest depreciation rates and the highest ROE among the big carriers. It raised its market share in FY08 from 8.4% to 9.2% in terms of share of wireless subscribers."

"While minutes of usage increased by 5%, the rate per minute fell by 15%, resulting in a 12% drop in ARPU to Rs 299. At 54%, Idea’s YoY revenue growth rate was equal to that of Bharti. We build in higher cost of imports over the next 2 years and raise WACC to 14% and reduce our DCF target price from Rs 141 to Rs 112. BUY," says IIFL's research report.

Parag Parikh on Marico - Target of Rs 82

Parag Parikh Financial Advisory Services has recommended a buy rating on Marico Industries with a target of Rs 82 in its September 11, 2008 research report. "At the current market price of Rs 58.25 , the stock trades as 16x of FY09 earnings and 14x of FY10 earnings. This seems grossly under priced and a value pick. PPFAS research expects the stock to reach a level of Rs 82 within 18 months to trade at 20x on projected earnings of FY10E. Thereby we rate the stock as a BUY giving an upside of 40%, target of Rs 82," says Parag Parikh Financial Advisory Services' research report.

India Infoline on Bharti Airtel - target Rs 908

India Infoline has recommended buy rating on Bharti Airtel, with a price target of Rs 908, in its report dated September 15, 2008.

"Over the past 12 months DoT has granted spectrum to several new players, which are likely to start operations, aided, partly, by faster network roll out due to infrastructure sharing. However, we believe Bharti is well placed to maintain its leadership position with a strong pan India presence and a 75 million subscriber base and forecast a 36.1% CAGR in earnings over FY08-10E. Valuations appear attractive at EV/EBIDTA of 8.4x and P/E of 12.8x on our FY10E earnings; recommend BUY with a target price of Rs 908", says India Infoline report.