Stock views Jain Irrigation Systems, Patni Computer Systems, Arshiya International,

SKP Securities on Jain Irrigation - Target Rs 1228

SKP Securities is bullish on Jain Irrigation Systems and has recommended buy rating on the stock with a target of Rs 1228, in its research report.

"Jain Irrigation Systems Ltd (JISL) is a leading agri business company operating in diverse but integrated segments of agri value chain. It is the second largest manufacturer of micro irrigation systems (MIS) globally and largest in India. JISL is one of the largest manufacturers of the PE pipes and tissue culture banana plants in India. The company also has presence in hybrid and grafted plants, greenhouses, bio fertilizers and solar water heating systems." "At the current market price of Rs 841, the stock is trading at a P/E of 24x, 17x and 13x of FY10E FY11E and FY12E earnings of Rs 35.6, Rs 48.5 and Rs 64.8 respectively. We recommend BUY rating on the stock with a target price of Rs 1,228/- (46% upside) in 18 months using the SOTP method of valuation," says SKP Securities research report.

India Cap Markets on Patni - Target Rs 530

India Capital Markets has recommended accumulate rating on Patni Computer Systems with a target of Rs 530, in its research report.

"Patni Computer Systems seems to be on its path to reclaim its “lost position”, where it was ousted from, due to lack of focus & strategic outlook of the company in the past, given its history of management & promoter ownership tussle. With a massive transformation of its leadership structure and having undertaken key strategic initiatives to optimize its internal operations and strengthen its business development capabilities, Patni seems to be rightly addressing the essential priorities, for a business turnaround."

"We expect the company to grow its revenues and earnings at a CAGR of 3% and 10%, respectively, over CY08-10E. At CMP, the stock trades at a P/E of 11.5x for CY10E earnings. Despite a fair run up in stock prices, we believe at the CMP, there is still headroom for price improvement, as the stock should witness its valuation discount to its peers, narrowing. We initiate coverage on Patni with an Accumulate rating and a price target of Rs 530, says India Capital Markets research report.

Emkay Global Financial Services on Arshiya International - Target Rs 230

Emkay Global Financial Services is bullish on Arshiya International and has recommended buy rating on the stock with a target of Rs 230.

“Arshiya International (AIL) is on its way to becoming a full fledged logistics services provider by setting up its FTWZs at JNPT, Khurja & Nagpur and ramping up its railway haulage services. After firmly establishing itself as a preferred player in the highly unorganized freight forwarding business, we believe its FTWZ foray will provide it a clear first mover advantage. The company is also aggressively expanding its railway haulage segment, with 30 rakes expected to be operational by March 2011. We believe AIL has been in an investment phase for the last two years. With Phase I, where the Mumbai and Khurja FTWZs will start operations from March and July 2010 respectively, we expect AIL to enter into a high growth phase from FY10 onwards.”

“We expect the company's revenue and net profit to grow at 23% and 29% CAGR over FY09- 11E respectively. The stock trades at 17x FY10E and 8x FY11E earnings. Given its strong growth phase over the next few years and higher return ratios of the new ventures, we believe its valuations are un-demanding. We are initiating coverage on the stock with a BUY rating and a target price of Rs 230.”

Indiabulls Securities views on Patni Computer Systems, Suzlon Energy, Mphasis

Indiabulls Securities on Patni - Target of Rs 123

Indiabulls Securities Research has maintained its buy rating on Patni Computer Systems with a target price of Rs 123 in its research report.

"Patni Computer System (Patni)’s result for CY08 was in line with our estimates. For Q4 CY08, Patni reported 6.7% qoq growth in net sales to Rs 8.5 billion, largely helped by the sharp depreciation of the rupee vis-à-vis the dollar. However, revenues went down by an expected 3.9% qoq, in USD terms, due to the global slowdown. The EBITDA margin declined 874 bps to 10.9%, owing to a weak operational performance during the quarter. Nonetheless, Patni remains an attractive value pick, considering its low EV/EBITDA. Besides, the Company has a high investment portfolio & cash position, which will work as a strong base for its stock price. Although we have reduced our target price (TP) to Rs 123 from Rs 142, we maintain our Buy rating on the stock," says Indiabulls Securities' research report.


Indiabulls Securities on Suzlon Energy - Target of Rs 53

Indiabulls Securities Research has recommended a buy rating on Suzlon Energy with a target price of Rs 53 in its research report.

"Suzlon Energy Ltd. (SEL) reported a strong operating performance during Q3’09. Net sales for the Company (Wind Group and Hansen) increased 56.2% yoy to Rs 49.5 billion, mainly on account of better sales realisations and increased sales volumes. EBITDA increased 64% to Rs 6.4 billion due to a decline in raw material costs and a 21% yoy increase in the average realisation rate."

"Though our near-term outlook for the Company has weakened because of the prevailing slowdown, we believe that the current market price more than factors the negatives. Based on our valuation, we have arrived at a target price of Rs 53 (assuming an 11.2% WACC and a 5% terminal growth rate). Since our target price provides an upside potential of 36% from the CMP, we give a Buy rating," says Indiabulls Securities' research report.


Motilal Oswal on Mphasis - Target of Rs 200

Motilal Oswal has maintained its buy rating on Mphasis with target price of Rs 200 in its research report.

"Mphasis reported QoQ revenue growth of 9.3% at Rs 9.8 billion v/s our estimate of Rs 9.6 billion for the quarter ended January 2009. The company has changed its financial year to Y/E October, in line with HP’s reporting cycle. EBIT margin at 21.5% was up 260bp QoQ. PAT at Rs 2.1 billion grew 15% QoQ with PAT margin expansion of 100bp QoQ to 21.5%. Forex gains were Rs 30.9 million in 1QFY09 v/s Rs 149 million in 4QFY08. Tax rate at 3.2% was lower than 2.8% in 4QFY08."

"Mphasis has displayed impressive execution since the last few quarters with 1] robust operating margin expansion, 2] improvement in billing rates in an environment of high pricing pressure, 3] improvement in utilization. We believe Mphasis would benefit from its strong parentage (HP and EDS) and presence in offshorable service lines like BPO, infra and application maintenance services in the near future. Maintain Buy, target price of Rs 200," says Motilal Oswal's research report.

Stock Views on Patni Computer Systems, Bharti Airtel, Dabur India, KS Oils

Indiabulls Sec on Patni Computer Systems - Target Rs 142

Indiabulls Securities Research has upgraded its rating on Patni Computer Systems to buy with a target price of Rs 142 in its November 25, 2008 research report. "Patni Computer Systems (Patni) reported a modest sequential growth of 4.2% to Rs 8 billion for Q2’09, helped by the sharp depreciation of the rupee. respectively. The stock trades at a heavy discount to the industry average multiple of 7.9x and 7.2x for CY08 and CY09, respectively. Besides, based on our DCF valuation, we have arrived at a target price of Rs. 142, assuming an 8% Rf, a 5% terminal growth rate, and a 13.1% WACC. Our target price provides an upside of 20.3% over the current levels; thus, we upgrade our rating to Buy," says Indiabulls Securities' research report.

Angel on KS Oils - Target of Rs 52

Angel Broking has maintained its buy rating on KS Oils with a revised target price of Rs 52 in its November 26, 2008 research report. "KS Oils (KSO) has acquired a 500 metric tonnes per day (MTPD) port based refinery in Haldia Port in East India for Rs 125 crore. The plant which has a total refining capacity of 500MTPD with a vanaspati unit of 150MTPD is located within the Haldia Port with a direct pipeline access to ships. The acquisition will help the company in setting up a manufacturing base in Eastern India, which is one of its key markets. Moreover with this acquisition, KSO currently is using only the ports in western coast due to the presence of its existing plants in western and central India has access to eastern coast thereby reducing its geographic risks."

"The refinery is expected to give a boost to the company’s refined oils product strategy and will produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh. The acquisition is expected to facilitate logistics efficiencies and significantly reduce the time to market KSO’s products to its consumers in East India. We believe this acquisition will bring in incremental sales of Rs 180 crore and Rs 540 crore in FY2009 and FY2010 respectively. The net profit too is expected to increase by Rs 9 crore and Rs 27 crore during the same time periods. We believe this acquisition is EPS accretive and hence we maintain a Buy on the stock with a revised target price of Rs 52 (Rs 47)," says Angel's research report.

Angel on Dabur India - Target of Rs 80

Angel Broking has recommended an accumulate rating on Dabur India with a target price of Rs 80 in its November 24, 2008 research report. "Dabur India has acquired 72.15% of Fem Care Pharma Ltd (FCPL), a leading player in the women’s skin care products market, for Rs 204 crore in an all-cash deal. We believe the acquisition to be a positive move by Dabur, although at a slightly higher cost, as it brings to Dabur a portfolio of well-known household brands that enjoy a strong positioning in their respective categories, offering Dabur a strong platform to enter into newer product categories and markets since it was witnessing a slowdown in its core categories like Toothpaste, Hair Oils and Homecare."

"As with the previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, Fem too would offer substantial synergies for expanding the reach of Fem’s brands in all its geographies as well as better management of overall system costs. This provides Dabur an entry into the high-growth skin care market with an established brand name Fem with further potential to extend the brand into newer and related skin care categories. We recommend Accumulate rating on Dabur with a target price of Rs 80," says Angel's research report.

India Infoline on Bharti Airtel - Target of Rs 710

India Infoline has recommended a buy rating on Bharti Airtel with a stoploss of Rs 610 and target of Rs 710 in its November 25, 2008 research report. "In the short-term, we expect the current reversal in trend to continue. The daily RSI is also showing a sign of reversal, currently trading above 45. Short-term traders can buy the stock in the range of Rs 635-650 for a target of Rs 710. It is advisable to maintain a stop loss of Rs 610 on the long positions," says India Infoline's research report.