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 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 Shree Cements, Zuari Inds, Patel Engg

Angel Broking on Patel Engg - Target Rs 316

Angel Broking has recommended a buy rating on Patel Engineering, with price target of Rs 316, in its report dated October 17, 2008. "Patel Engineering (PE) registered steady growth for 2QFY2009. Consolidated Sales were in line with our expectations increasing by 30% yoy to Rs 442 crore (Rs 339 crore) on the back of a strong order book of Rs 6,301 crore. For 1HFY2009, growth was tad better at 33% to Rs 1,000 crore (Rs 754 crore). Patel Engineering posted a Net Profit growth of 20% for 2QFY2009 to Rs 42.6 crore (Rs 35.5 crore) in line with our estimates."

"We expect the company to grow at a CAGR of 25% over the next two years and it would be one of the few players to stand tall on the Margin front especially amidst the prevailing high commodity price and rising Interest rate regime. At the CMP of Rs 177, the stock is trading at 9.8x FY2009E and 6.9x FY2010E EPS of Rs 18 and Rs 25.5 respectively, on Standalone basis. We maintain a Buy on the stock, with a Target Price of Rs 316 (Rs 418)," says Angel Broking's report.

HDFC Securities on Zuari Inds - Target Rs 482

HDFC Securities has maintained its buy rating on Zuari Industries with a target of Rs 482 in its October 21, 2008 research report. "In H1FY09 Zuari’s profits increased 78% YoY to Rs 776 million. But, as the management was unavailable to comment, we haven’t revised our estimates for FY09E & FY10E. Valuations remain compelling."

"At the CMP, even if 60% of the profits are maintained in H2FY09, the standalone business is available at 4.3x FY09E EPS. Above this, for the full year, we expect Zuari’s JV Paradeep Phosphate (50% holding) to report a PBT of Rs 5 billion, which is equal to Zuari’s current market cap. We maintain BUY but with a modest price target of Rs 482 (adjusted for current market value of investments) from Rs 510 earlier," says HDFC Securities' research report.

HDFC Securities on Shree Cements - Target Rs 803

HDFC Securities has maintained its buy rating on Shree Cements (SCM) with a target of Rs 803 in its October 7, 2008. "We expect the earnings of SCM to grow at a CAGR of 17% over FY08 to FY10E. We have valued the company on 4x FY09E EV/EBITDA, which gives us a target price of Rs 803 per share, an upside of 62% over its CMP. At our target price of Rs 803, the stock will trade at 6.4x FY09E and 7.8x FY10E EPS. We maintain BUY rating on the stock," says HDFC Securities' research report.