Stock Views on Mundra Port, Kesoram Industries

KRChoksey on Mundra Port - Target Rs 705

KRChoksey research is bullish on Mundra Port and Special Economic Zone has recommended buy rating on the stock with a target of Rs 705, in its research report.

"Mundra port is slated to become the largest standalone port in terms of the handling capacity by FY12-13 and based on our projections it would handle more than 100 mtpa by FY14, which would make it one of the largest standalone ports in terms of the cargo handled. Such growth will be mainly driven by the capacity expansion that the company has undertaken (coal terminal, dedicated container terminals for car exports, bulk cargo port at Dahej, ICDs at new locations, and additional rakes at Adani Logistics). We believe the company exhibited a steady performance in H1FY10. MPSEZ’s cargo growth was at 9.3% y-o-y in H1FY10, significantly outperforming the 2.9% y-o-y growth registered by the major ports in India during the same period."

"Major ports on the west coast (JNPT, Mumbai Port and Kandla Port) are operating at close to 100% capacity utilization. We thus believe Mundra port is well placed to attract the traffic on the west coast due to its unutilized capacity and strategic advantages. At the CMP, the company’s stock is trading at 25.3x its FY11E EPS of Rs. 22.0 per share. We initiate our coverage on MPSEZ assigning a BUY rating to the stock with 12-month target price of Rs 705, based on our SOTP valuation," says KRChoksey research report.


Sunidhi Securities & Finance on Kesoram Industries - Target Rs 480

Sunidhi Securities & Finance has recommended buy rating on Kesoram Industries with a target of Rs 480.

“Kesoram Industries’ Greenfield Tyre project of 257 TP per day capacity in the State of Uttarakhand with a Capex of about Rs 760 crore commenced the commercial production in phases during the financial year 2008-09. The Rs 783 crore expansion of 1.65 million tonnes of cement per annum in Vasavadatta Cement at Sedam in Karnataka as unit IV at the same site commenced production in June 2009 and a 17.5 MW Captive Power Plant commenced electricity generation from March 2009.”

“KIL is likely to post an EPS of Rs 85 in FY10, which would go up to Rs 98 in FY11. At CMP, the share is trading at a P/E of 4.4x on FY10E and 3.8x on FY11E. KIL stock was in an intermediate uptrend from early-March’09 till July ’09. RSI indicator (in the lower window) has declined far rapidly as compared to prices. The sideways consolidation in prices along with a rapid fall in RSI can pave way for the continuation of the prior uptrend. The stock is expected to move towards the 50% retracement level of Rs 390, which if broken would take the stock price to Rs 480 in the intermediate-term," says Sunidhi Securities & Finance research report.

Stock views on Clutch Auto, Time Technoplast, Sahyadri Industries

Bonanza on Clutch Auto - Target Rs 50

Bonanza research is bullish on Clutch Auto and has recommended buy rating on the stock with a target of Rs 50, in its research report.

"Clutch Auto (CAL) is a leading Clutch & Related components maker in India. It is likely to report an EPS of Rs.5 in FY2010. At CMP, it trades at 8 PE on FY 10 estimates. On Cash EPS basis, it trades at 3.4 Cash PE on FY10 estimated Cash EPS of Rs.12/Share. Also the scrip is at steep discount to its FY 2009 Book value of Rs. 86/Share. Investors may BUY in Rs 38-40 range for a target of Rs 50 i.e. about 10 times its FY 2010 estimated EPS," says Bonanza research report.

Investment Rationale
· The replacement market is the most important segment, accounting for 47% of the sales. CAL has vast marketing pan India network of 37 marketing offices in 20 major cities.
· The Indian automobile industry is on fast revival after tough period in later half of FY09. With confidence returning in economy, CV and Capital goods sales are witnessing upward trend after almost 2 years of slow down. · Growth in Auto Industry directly benefits the Ancillary industry.
· All the major customers of CAL are witnessing strong sales growth

Hem Securities on Time Technoplast - Target Rs 70

Hem Securities is bullish on Time Technoplast's and has recommended buy rating on the stock with a target of Rs 70, in its research report.

"Time Technoplast's sound business profile is driven by technology focus, diversified product portfolio, diversified customer base and increasing scales of economies. The Company's international presence through its operations in Poland , Sharjah , Bahrain and Thailand has enabled it to de-risk the markets and its businesses. The company has reported great results for Q2FY10. The global slowdown of the economy affected export sectors the most. Fortunately, TTL does not have any dependence on exports as well. The company is running at a P/E multiple of 11.92x with an EPS of Rs.4.11 (TTM). We are positive on the company’s outlook and we recommend BUY on stock with a medium term price target of Rs 70," says Hem Securities research report.

Sunidhi Securities & Finance on Sahyadri Industries - Target Rs 125

Sunidhi Securities & Finance has recommended buy rating on Sahyadri Industries with a target of Rs 125, in its research report.

“Sahyadri Industries, (SIL) has further planned to invest in additional six wind mill, two in the state of TamilNadu and four in Rajasthan. The wind power generation in TN will be consumed by SIL’s sheet manufacturing plant at Perundurai and power generation in Rajasthan will be sold to State Utility. In the process of wind power generation, SIL also generates carbon emission reduction which may be negotiated for price in international market under Clean Development Mechanism, subject to completing formalities and obtaining certificate of carbon emission reduction as per Kyoto Protocol.”

He further added, “SIL is likely to post an EPS of Rs 33 in FY10, which would further go up to Rs 38 in FY11. At CMP, the share is trading at a P/E of 2.8x on FY10E and 2.4x on FY11E. SIL has been forming higher highs and higher lows. However, RSI indicator (in the lower window) has failed to make higher highs. The support levels are around Rs 90 and thereafter at Rs 85. The resistance on the upside is at Rs 105. A breach of this level should take the stock price to Rs130. We recommend BUY with a target of Rs 125,” says Sunidhi Securities & Finance research report.