Dena Bank

THE buzz in the banking industry on a likely consolidation among state-owned banks, after a meeting between finance minister Pranab Mukherjee and PSU bank chiefs, appears to have been the driver for the rise in stock price of Dena Bank. The scrip has gained 31% in November 2009 compared to just 6% gained by the Nifty, with the market viewing the bank as a potential acquisition target for one of the large state-owned banks.

Despite the recent upsurge in price, the stock still remains one of the cheapest banking stocks in terms of valuations. The Dena Bank stock is trading at a price-to-book value (P/BV) ratio of 1.1. Most of the banks are trading at a much higher price than their book values. In fact, top state-owned banks such as State Bank of India, Punjab National Bank, Bank of India and Bank of Baroda are trading at an average valuation of roughly two times their book value. However, Dena Bank, historically, has traded at much lower valuations.

What is disconcerting is the huge fluctuations in Dena Bank’s performance from quarter-to-quarter. For instance, in the past four quarters, the year-onyear growth in profit ranged from 68%, at best in the June 2009 quarter, to 0% in the March 2009 quarter. In fact, on other parameters, the bank’s performance has been better than many of its peers. For instance, in FY09, it posted a net interest margin (NIM) of 2.9%. Even in earlier financial years, its NIM hovered close to 3%, which is considered as a benchmark in the banking industry.

The bank posted a return on assets (RoA) of 1.02% in FY09, which is roughly close to the banking industry average. It reported a capital adequacy ratio of 11.6% at the end of September 2009 which is in line with regulatory norms.

At around 1% of its net advances, its net non-performing assets or bad loans’ asset quality is satisfactory, if not the best in the industry. In a nutshell, the bank’s performance on the basis of these parameters is not a cause for concern. However, its growth rate is one of the lowest in the industry. In the past five financial years, its profit has not even doubled, which makes it one of the slowest-growing banks.

From a strategic investor’s perspective, Dena Bank can offer value with a branch network of 1,120 branches. But from retail investor’s point of view, it seems that, at current levels, the price has factored in synergies of consolidation, to an extent, which makes the current rise in price speculative.

Indian Bank

INDIAN Bank is one of the oldest banks in the country. It is also one of the best-managed state run banks in India. Its performance in the last three years, since it absorbed all its accumulated losses in its capital, is at par with best in its industry. Investors are advised to consider it for long-term investment.
BUSINESS

Headquarted in Chennai, Indian Bank is a leading bank in South India with widespread presence in Tamil Nadu, Kerala, Andhra Pradesh and Pondicherry. It was nationalised in 1969. It is a medium-sized bank and its balance sheet size stood at Rs 84,122 crore in FY 2009. It has 1,642 branches.

In the current decade, the bank has seen a turn-around. At the end of March 2000, bad loans, or net non-performing assets, formed 16% of Indian bank’s net advances. In FY06 it absorbed all the losses in its capital, which fell to Rs 744 crore from Rs 4,574 crore in the previous year. Since then, Indian Bank’s profit has grown at compounded annual growth rate (CAGR) of 35% every year, while its balance sheet has grown at a CAGR of 21%. This shows that it has enough reach and scale to leverage.

GROWTH DRIVERS

Indian Bank’s performance is clearly a cut above most state-run banks, notorious for inconsistent performance that puts down investors. The bank has performed well on all quality parameters while maintaining an impressive growth rate, achieving a delicate balance that has eluded several of its peers.

For instance, its net interest margin (NIM) stood at more than 3.5% in last six financial years. The only banks, which can better Indian Bank on this count are Kotak Mahindra Bank, Federal Bank and HDFC Bank. Its return on assets (RoA), at 1.6% in FY 2009, was the highest across all banks.

Its bad loans formed less than 0.2% of its net advances at the end of the year. Only Punjab National Bank has better record than Indian Bank on this count. The composition of its lending portfolio is very much on the lines of other state-run banks: agriculture loans constituted 15%, SME loan formed 11% and corporate sector contributed 50% to total loan book.

That the bank’s performance is superior despite similar lending profile shows the efforts being put in to choose the customers. The bank is expanding its presence. It opened 101 new branches in FY 2009.

VALUATION

Indian Bank is trading at a price to earning (P/E) multiple of 4.8 times. This is lower than the average of smaller banks that are no match to it in performance.

This indicates that the stock market is not giving premium to its performance. Moreover, the earnings growth is far ahead of P/E, which shows that the possibility of rise in stock price is much higher. In terms of price-to-book value P/BV), the stock is trading at close to 1, which is the average at which other banks are trading. Even based on P/BV, the bank is not getting the premium it deserves in terms of valuations.

We think it will be re-rated some time in future and therefore advise long-term investors to buy the stock at current levels.

Stock Views on Bank Of India, PNB, Orchid Chemicals

KRChoksey on Bank Of India - Target Rs 380

KRChoksey has recommended a buy rating on Bank Of India with a target price of Rs 380 in its research report.

"Bank of India’s operational results were broadly in line with our expectations with headline profit numbers increasing 4% y-o-y to Rs 584.3 crores. Net Interest Income came under pressure as bank remained cautious on increasing advances (yoy advances growth up 23% yoy and 2.1% sequentially). We recommend a 'Buy' on Bank of India with a target of Rs 380," says KRChoksey's research report.


KRChoksey on PNB - Target Rs 780

KRChoksey has maintained its buy rating on Punjab National Bank with a target price of Rs 780 in its research report.

"PNB reported better than expected headline profit at Rs 832 crore (up 62.4% y-o-y) on back of higher trading gains. Net Interest Income held up better compared to peers as the bank was able to withstand margin pressures better. We maintain a 'Buy' on PNB with a target of Rs 780," says KRChoksey's research report.

Angel Broking on Orchid Chemicals - Target Rs 110

Angel Broking has maintained its buy rating on Orchid Chemicals and Pharmaceuticals with a target price of Rs 110 in its research report.

"For 1QFY2010, Orchid’s net sales increased 8% to Rs 305.8 crore (Rs 282.6 crore) driven by launch of the high-Margin Tazo-Pip in Europe. At current levels, the stock is trading at 6.1x FY2011E Adjusted Earnings and 1.3x FY2011E EV/Sales which we believe adequately factors in the concerns on the debt front and delays in getting approval for its high-Margin products. We maintain a 'Buy' on the stock, with a target price of Rs 110," says Angel's research report.

Bank of Baroda

Bank of Baroda is likely to emerge as a much stronger player. Investors can invest in the stock with a long-term perspective

Beta: 1.06
Institutional holding: 38.0%
Current dividend yield: 2.9%
Current P/E: 6.5
Current m-cap: Rs 10,035.6 cr

WITH A network of over 2,800 branches across the country, Bank of Baroda (BoB) is one of the largest public sector banks in India. The bank has been growing rapidly in the last few years, and it closed FY '08 with 46 branches in abroad—a mark that very few banks have achieved. BoB's wide base has helped it to tap all the resources-in rural, semi urban and the metro markets-to grow its balance sheet and revenues. BoB's international advances grew by more than 30% in FY '08, as a result of its wide presence in overseas markets.

BUSINESS

BoB's balance sheet has grown at a compounded average growth rate (CAGR) of 25.9% per annum in '06-'08. And, in terms of the growth trajectory, BoB has joined the fray of the top PSU banks, like, Punjab National Bank (PNB) and Bank of India (BoI).

The turnaround actually started becoming visible in the FY '06, when for the first time in the current decade the balance sheet expanded by close to 20%. Since, FY '06, the bank's loan book has been increasing at a rate in excess of 25%, but the deposits have been growing at a bit slower rate. This has helped it in improving the credit-deposit ratio i.e. a higher portion of deposits is extended as advances.

However, BoB's net interest margin (NIM) has been under pressure as it has come down from 3.4% in FY '05 to 2.9% in FY '08. One may get an impression that this has happened because the bank has not been able to pass on the increase in cost of deposit to its customers. However, this is because the bank had to step up its deposit mobilisation in the last two years in order to maintain high credit growth. This resulted in higher interest payments on account of higher deposits, thereby, compressing the net interest income, which ultimately led to fall in NIM. This shows that there was a trade off between BoB's shrinking NIM and growth in its advances. And, it has paid off, as the bank's profit grew at a CAGR of 30.8% in last three financial years.

The non-interest part of BoB's revenue has not been growing as fast as the fund-based revenue. The bank needs to improve its performance on this parameter. In the six months ending September '08, the bank's profit has grown by 16.5% on a year-on-year basis, propelled by 32.5% growth in its advances. It must be noted that the growth in advances took place in a sluggish business environment.

The NIM was also under pressure in the first half of the current financial period. This is visible as the interest expenses grew by a higher percentage than interest income. However, BoB rationalised its other expenses, and this helped in boosting its profit growth.

The asset quality is very high as the net NPAs formed just 0.43% of net advances at the end of September '08 quarter and on this count the bank's performance is as good as a top private bank. Its capital adequacy ratio stands at 13% and it shows that it is well capitalised.

VALUATION

The stock is trading at a multiple of 6.5 times the trailing twelve months' earnings. The low valuations do not justify the earnings growth, which is much higher. Moreover, the stock is trading at a discount to its book value (Rs 301 per share). A fundamentally sound stock, trading at less than its book value, is often the first to rise when the market starts moving up. Investors are advised to invest in the stock with long-term horizon.

Stock Views on Punjab National Bank, Patel Engineering, Dr Reddys Laboratories

Prabhudas Lilladher on PNB - Target of Rs 682

Prabhudas Lilladher has upgraded its rating to accumulate on Punjab National Bank, PNB with a price target of Rs 682 in its report dated .

“Punjab National Bank’s (PNB's) Q4FY09 PAT grew by 59.2% YoY at Rs 8.66 billion. This was higher than our estimate of Rs 7.1 billion and also the market estimates, largely led by lower provisions and high treasury gains. We have discontinued giving a significant discount (Rs 40 per share for its commercial real estate exposure of Rs 60 billion). Equity capital is currently again available to real estate companies as capital markets have improved. Hence, we feel debt exposure to real estate companies should not attract any significant discounts."

"At the CMP, the stock is trading at 1.4x FY10 P/BV, 1.5X FY10E P/ABV and 6.5xFY10E P/E in-line, with its peer group banks. However, it has one of the best RoEs (>20%) and RoAs (1.2%) in the sector, the risk of continuation of current Chairman at the helm of affairs is the only pertinent non-fundamental risk that we can envisage at the current juncture. We upgrade the stock to an ‘Accumulate’ rating, with a revised price target of Rs 682," says Prabhudas Lilladher's report.

Karvy Stock Broking on Patel Engineering - Target of Rs 395

Karvy Stock Broking has maintained its buy rating on Patel Engineering with a price target of Rs 395, in its report.

"During the quarter ending March 09, we expect the company would report the net sales growth of 11.5% to Rs 8.1 billion in Q4FY09 from Rs 7.26 billion in Q4FY08. We expect EBIDTA would go up by 19.5% to Rs 1.25 billion and EBIDTA margin would improve by 100bps to 15.5% on account of higher contribution from high margin order book. We expect RPAT would go up by 36.3% to Rs 726 million."

"During the quarter, the company has bagged an order worth of Rs 7.99 billion from the Narmada Valley Development Authority for Bargi Diversion Project in joint venture with SEW Construction Ltd. The company's stake in the project would be around 60% which will translate the order inflow of Rs 5 billion. At the current market price of Rs 309, the company is trading at PER multiple of 10.2x and EV/EBIDTA multiple of 5.8x on FY10E earnings. Looking at the easing liquidity situation and expected robust order inflow post stable government; we maintain our 'BUY' rating with revised price target of Rs 395." says Karvy Stock Broking's report.

Angel Broking on Dr Reddys Laboratories - Target of Rs 765

Angel Broking has recommended a buy rating on Dr Reddys Laboratories with a target price of Rs 765 in its research report.

"For 4QFY2009, under Indian GAAP, Dr Reddy’s Laboratories (DRL) reported Net Sales of Rs 1,928.2 crore posting a growth of 52.2% yoy and ahead of our estimate of Rs 1,692.9 crore. For 4QFY2009, DRL’s Operating Margins (OPM) expanded by 974bp to 24.2% on the back of higher contribution from Sumatriptan and lower growth in SG&A expenses. For FY2009, the company reported OPM of 17.5%, up by 200bp."

"On the bourses, the stock has moved up 61.0% to Rs 636 in the last three months on the back of positive announcements pertaining to favourable judgment on Omeprazole OTC, ANDA filing of Fondaparinux and strong show on Sumatriptan in the US. For FY2011, we estimate Net Sales to post 10.5% yoy growth to Rs 7,848 crore with EBITDA Margins of 18.5% resulting in EPS of Rs 53.8 for the year. Discounting FY2011E Earnings, we have arrived at a Target Price of Rs 765 wherein Rs 741 is attributable to DRL’s base business (at 18x FY2011 EPS of Rs 41.2) and NPV of Rs 24 for its potential FTF. We recommend a Buy on the stock on the back of improving visibility in DRL’s product pipeline," says Angel Broking's research report.

Stock Views on Punjab National Bank, Bajaj Auto, ITC

Motilal Oswal on PNB - Target of Rs 721

Motilal Oswal has maintained its buy rating on Punjab National Bank with a price target of Rs 721 in its report.

"Punjab National Bank’s 4QFY09 PAT at Rs 8.7 billion was higher than our estimate of Rs 8.1 billion. We like PNB for its inherent strengths of large branch network in the cash-rich North India, strong liability side of balance sheet, higher sustainable margins, strong tier-I at 9%+ and improved asset quality. We expect momentum to slow down in loan growth and fee income. However; return ratios will remain superior with RoA at 1.3%+ and RoE at 23%+. Post 4QFY09 results, we have increased our EPS estimates by 11-12% for FY10-11. We expect PNB to report EPS of Rs106 in FY10 and Rs124 in FY11. BV would be Rs 494 in FY10 and Rs 585 in FY10. The stock trades at 1.3x FY10E BV and 6.1x FY10E EPS. We have maintained buy rating on the stock, target of Rs 721," says Motilal Oswal's report.

Angel Broking on ITC - Target of Rs 214

Angel Broking has maintained its buy rating on ITC with a target of Rs 214 in its research report.

"For 4QFY2009, ITC posted 1.1% yoy de-growth in Top-line to Rs 3,892 crore. We remain positive on ITC’s strong consumer demand profile, better pricing power, strong cash flows and its ability to channel these flows into new growth opportunities. At the CMP, the stock is trading at 15.3x FY2011E EPS of Rs 12. We maintain a 'Buy' on the stock with a target price of Rs 214. However, higher-than-expected hike in Excise Duty on cigarettes during the next Budget (we have factored in 5% hike for FY2010E) carries downside risks to our estimates," says Angel Broking's research report.

IIFL on Bajaj Auto - Target of Rs 1030

IIFL has maintained its buy rating on Bajaj Auto with a target price of Rs 1030 in its research report.

"Bajaj Auto’s operational 4QFY09 results were much better than the street’s expectations. EBITDA margin adjusted for one-off items expanded 150bps QoQ, driven by a steep decline in raw-material costs (primarily steel and aluminium) and shift in product mix towards the highly profitable 125cc+ segment. Reported PAT was lower than our estimate on account of a Rs 220 million MTM loss on forex contracts taken for hedging exports in FY10. Going forward, we expect margins to expand further to over 18%. Accordingly, we raise our EPS estimate for FY10 by 29% and for FY11 by 20%. We maintain 'BUY' with a price target of Rs 1,030, based on 13x FY10ii EPS," says IIFL's research report.

Stock Views on PNB, Dishman Pharma, Bajaj Auto

Angel Broking on PNB - Target of Rs 747

Angel Broking has maintained its buy rating on Punjab National Bank with a target price of Rs 747 in its research report.

"We believe Punjab National Bank, PNB is amongst the more profitable and competitive PSBs, with relatively strong earnings growth and RoE prospects. We have a positive outlook on the bank due to its superior CASA ratio and high core income component in earnings. We believe the bank’s core competitiveness in retail deposits is underpinned by the relatively high concentration of its business in rural areas, especially in North India, that are relatively underpenetrated by other banks and we have a positive outlook on its aggressive medium-term growth thrust in these areas. At CMP, the stock is trading at 5.3x FY2011E EPS of Rs1 20.5 and 1.1x FY2011E adjusted book value of Rs 597.4. We maintain a 'buy' rating on the stock, with a revised 12-month target price of Rs 747, implying an upside of 17%," says Angel Broking's research report.

Emkay Global on Dishman Pharma - Target of Rs 213

Emkay Global Financial Services has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with a price target of Rs 213, in its report.

"Amidst weak global outlook and inventory rationalization, Dishman’s FY09 numbers are ahead of our expectations. Revenue grew by 32% to Rs 10.6 billion (est. of Rs 10.4 billion) on the back of a 29% growth in CRAMS business and full year impact of Vitamin-D business. During Q4FY09, the company witnessed an EBIDTA margin expansion of 740bps to 25.2% mainly on the back of reduction in Raw material cost (down by 810 bps) and Employee cost (down by 240bps), The reduction in the raw material cost was primarily on account of higher contribution from Contract research business. Despite strong performance in FY09, management has given 15-20% revenues and earnings growth for FY10E, which is line with our estimates. We maintain our FY10E revenue and earning estimates and introduced FY11E numbers. We reiterate our 'Buy' rating with a target price of Rs 213," says Emkay Global Financial Services' research report.

Reliance Money on Bajaj Auto - Target of Rs 1080

Reliance Money has recommended a buy rating on Bajaj Auto with a target price of Rs 1080 in its research report.

"Bajaj Auto Ltd (BAL) reported Q4FY09 results which were in below our expectation. Exports revenue remained sluggish due to weak overseas markets. Forex losses also impacted net profit of the company. On the new initiative side, the company has installed an assembly plant in China and is likely to introduce KTM bikes in India by mid of FY11E. Going ahead BAL would focus on three brands ‘Bajaj, KTM and Boxer (China). BAL also said it would launch 2 new motorcycles in FY10E and expect the sales volume to go up. We estimate BAL’s earnings to grow by 28% for FY09-FY11E. We upgrade our price target to Rs1,080 and recommend a 'BUY'," says Reliance Money'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.

Angel Broking views on Bank stocks - Punjab National Bank, Union Bank, Oriental Bank of Commerce, Bank Of India

Union Bank - Target of Rs 194


Angel Broking has recommended a buy rating Union Bank of India with a target of Rs 194 in its November 21, 2008 research report. "We believe UNBK is amongst the more profitable, efficient and competitive PSU Banks. We have a positive outlook on the bank due to traction in CASA deposit growth driven by large branch expansion plans as well as cost-efficient operations. We expect the Bank to deliver 12% CAGR in Net Profit and 24% RoE over FY2008-10E."


"At Rs 144, the stock is trading at 4.2x FY2010E EPS of Rs 34.3 and 0.9x FY2010E ABV of Rs 161.9. The stock has been trading at a median one-year forward P/ABV multiple of 1.1x since April 2002. We value the stock at 1.2x FY2010E ABV to arrive at a 12-month Target Price of Rs 194, implying an upside of 35%. We recommend a Buy on the stock," says Angel Broking's research report.


PNB - Target of Rs 625


Angel Broking has recommended a buy rating on Punjab National Bank (PNB) with a target of Rs 625 in its November 21, 2008 research report. "We believe PNB is amongst the more profitable and competitive PSBs, with relatively moderate Earnings growth and strong RoE prospects. We have a positive outlook on the Bank due to its superior CASA ratio and high core income component in Earnings, tempered by relatively moderate growth momentum. We expect the bank to deliver about 21% RoE over FY2008-10E and maintain high RoEs relative to peers over the longer term as well, underpinning higher valuation multiples."


"At Rs 451, the stock is trading at 4.9x FY2010E EPS of Rs 92.5 and 0.9x FY2010E Adjusted Book Value (ABV) of Rs 480.4. We value the stock at 1.3x FY2010E ABV to arrive at a 12-month Target Price of Rs 625,implying an upside of 39%. We recommend a Buy on the stock," says Angel Broking's research report.


Bank Of India - Target of Rs 317


Angel Broking has recommended a buy rating on Bank Of India with a target price of Rs 317 in its November 21, 2008 research report. "We are positive on Bank of India (BOI) due to its balanced funding mix, moderate operating costs, efficient capital management and high core fee income. Consistent improvement in operating leverage and relatively higher resilience in NIMs have led to improvement in core RoE. Hence, we value the stock at 1.3x FY2010E ABV (above its median P/ABV of 1.0x since April 2002) to arrive at a 12-month target price of Rs 317. We recommend a Buy on the stock," says Angel's research report.



Oriental Bank - Target of Rs 192


Angel Broking has recommended a buy rating on Oriental Bank of Commerce with a 12-month target price of Rs 192 in its November 21, 2008 research report. "Oriental Bank of Commerce's (OBC) sustainable RoAs are low on account of its weak Deposit mix and low Fee income. On account of reduced sustainable RoAs due to substantial NIM compression and moderate growth outlook on NII and Fee Income front, we value the stock at 0.7x FY2010E ABV, below the median one-year forward P/ABV multiple of 1.1x at which it has traded since April 2002."


"Nonetheless, at Rs 137, the stock is trading at cheap valuations of 3.9x FY2010E EPS of Rs 35.7 and 0.5x FY2010E Adjusted Book Value (ABV) of Rs 273.7. Hence, we recommend a Buy on the stock, with a 12-month Target Price of Rs 192, translating into an upside of 39%," says Angel Broking's research report.

ICICI Securities views on SBI, PNB, Infosys Technologies

State Bank of India (SBI) & Punjab National Bank (PNB)

The banking space looks good in a scenario where interest rates across the globe are heading south. The same is the situation in India which remains least impacted from the credit crisis. Market leaders such as SBI and PNB will witness 22-24% growth in their core business. Also, these banks have a robust CASA of 40% that will enable them to maintain net interest margins (NIMs) of about 3% levels going forward. Even the asset quality remains robust and are well capitalised at this point of time.

Infosys Technologies

Given the current financial turmoil in the US, tech stocks, including large caps, have been beaten down to attractive levels. Also, we believe large cap stocks having scale benefits and substantial cash on books will tide over the ongoing crisis. In such a scenario, we like Infosys because of the above factors and given their superior management capabilities.

Stock Views on Union Bank of India,

Mafatlal Securities on Union Bank of India - Buy Target Rs 205
Mafatlal Securities has recommended a buy rating on Union Bank of India with a target of Rs 205 in its September 11, 2008 research report. "At the current price of Rs 147.60 the scrip discounts its estimated EPS of FY09 and FY10 by 5.28x and 3.91x respectively. The scrip is currently trading at a PE ratio of 5.37x (TTM) which is at a discount of 39% to the industry PE of 7.45x. The scrip is trading at 1.10x and 0.88x of estimated BV of FY09 and FY10. We recommend a “BUY” on UNBK with a target price of Rs 205 and an investment horizon of one year," Mafatlal Securities' research report.

Anand Rathi on Punjab National Bank - Buy Target of Rs 515

Anand Rathi Securities has recommended to buy Punjab National Bank (PNB) between Rs 490 and Rs 495 with a stoploss of Rs 485 and a target of Rs 515 in its September 12, 2008 research report.

ICICIdirect.com on Tata Motors - Buy above 424

ICICIdirect.com has recommended to buy Tata Motors above Rs 425 with a stoploss of Rs 424 and target of Rs 427/435/higher in its September 12, 2008 report.

Deutsche Bank on Kotak Mahindra Bank - Target of Rs 600

Deutsche Bank has downgraded its rating on Kotak Mahindra Bank to Hold with a target of Rs 600