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 Tata Chemical, Sesa Goa, Parekh Aluminex

IndiaInfoline on Tata Chemical - Target Rs 335

IndiaInfoline is bullish on Tata Chemical and has recommended buy rating on the stock with a target of Rs 335

"Tata Chemical has done pretty much nothing in last three weeks, besides moving in a trading band between Rs 295-270. This week, after a long time, the stock made a move above the upper end of the trading range. The rangebound trading appears to be broken and the stock is all ready to surge higher. Our view is further validated after the stock gave a close above the cluster of moving averages placed around Rs 299-300 levels. If the stock holds up above the levels of Rs 325-326 today, it can post huge upside in the coming trading sessions. We recommend high risk traders to buy the stock in the range of Rs 311-318 for target of Rs 335. Maintain a strict stop loss of Rs 303,” says IndiaInfoline research report.

IndiaInfoline on Sesa Goa - Target Rs 400

IndiaInfoline is bullish on Sesa Goa and has recommended buy rating on the stock with a target of Rs 400

“Sesa Goa has been consolidating in a range between the levels of Rs380-360 from last two weeks. On Thursday, the stock attempted to break-out from the upper-end of this trading range. Moreover, on the daily chart, the stock has formed a Bullish Candlestick suggesting upside from the current levels. The daily RSI is already in strong buy mode. The stock has closed above all its key daily moving averages. A move past the levels of Rs385 could take the stock towards the levels of Rs400 in the short-term. Keeping in mind the above-mentioned evidences, we recommend high risk traders to buy the stock between the range of Rs376-385 with a stop loss of Rs 370 for a target of Rs 400,” says IndiaInfoline research report.

Sunidhi Sec on Parekh Aluminex - Target Rs 145

Sunidhi Securities & Finance has recommended a buy rating on Parekh Aluminex, with a price target of Rs 145, in its report

"Parekh Aluminex is likely to post an EPS of Rs 34 in FY10, which would further go up to Rs 44 in FY11. At CMP, the share is trading at a P/E of 3.2x on FY10E and 2.5x on FY11E. The stock is forming a sideways consolidation triangle price pattern. The consolidation pattern is forming after a long run-up. The upside breakout from the price pattern is at Rs 120. The target for the stock after the breakout is Rs 160. However, we recommend BUY with a target price of Rs 145 in the medium term," says Sunidhi Securities & Finance 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.

Stock views on Bombay Rayon Fashion, Century Enka, Unichem Laboratories

Sushil Finance on Bombay Rayon Fashion - Target Rs 282

Sushil Finance has maintained buy rating on Bombay Rayon Fashion with a target of Rs 282 in its report

"Bombay Rayon Fashion Ltd. (BRFL) is one of the leading, vertically integrated textile companies in India. It has a strong presence across the entire value chain of design, yarn dyeing, weaving, fabric processing, garment manufacturing & retail and operates through 32 manufacturing facilities. BRFL has a strong presence in designer garment segment & is catering to various international brands like Zara, Guess, Next, Polkar, Warrior, Massimo Dutti, DKNY, Wrangler etc. Its exports are mainly in USA and Europe and it contributes 65% of its revenues."
"BRFL has acquired 3 business units in the past viz. UK based “DPJ Clothing”, “Leela Scottish Laces” and “LNJ Apparel”.

The acquisitions have helped in increasing capacities & expanding customer base in India & abroad. It also acquired ‘GURU’, an established high- end European retail brand. Most of its expansions has gone on stream this year and hence we expect BRFL to post a consolidated APAT growth of 34% in FY10 and 53% in FY11. At the CMP of Rs 191, the stock trades at an attractive valuation of 7.9x its FY11 earnings and P/BV of 0.7x FY11E. Buy. Target Rs 282, "says Sushil Finance research report.

Sunidhi Securities on Century Enka - Target Rs 320

Sunidhi Securities & Finance has come out with a research report on Century Enka (CEL). The research firm has recommended buy rating on the stock with a target of Rs 320, in its report
"CEL is likely to post an EPS of Rs 54.8 in FY10, which would go up to Rs 61.5 in FY11. At CMP of Rs 260, the share is trading at a P/E of 4.7x on FY10E and 4.2x on FY11E. Century Enka in its weekly chart can be seen in a clear uptrend since early-2009. The index is expected to reach its primary peak at Rs 275. The ability of the stock to sustain above Rs 275 should take it to Rs 320. We recommend buy with a target of Rs 320", says Sunidhi Securities & Finance.

Karvy Stock Broking on Unichem Labs - Target of Rs 340

Karvy Stock Broking has recommended outperformer rating on Unichem Laboratories with a target of Rs 340, in its research report.

“Unichem Laboratories has a balanced portfolio of products in the acute and chronic space. Acute therapy products comprise around 43% of the product basket whereas the remaining is contributed by chronic therapies. In the acute space the company has major products in the antibiotics space namely Ampoxin whereas in the Chronic space revenues mainly come from CVS, diabetology and CNS products. Losar group of products is the main product in the chronic space. While the chronic therapy franchise of the company has been growing, acute therapy products have witnessed stagnant sales. Though gross margins are lower in acute the ramp up can be quicker in this segment.”

“Going forward, the company intends to focus on acute products and hospital business in the next six months. The company also intends to enter gynaecology and injectables antibiotics business in the medium term. We expect the acute products business to gain traction in the near term. Unichem intends to launch 20 new products in the next 12 months which will also include nephrology products. The company is hopeful of a revenue growth of 10% for FY2010 and 10-12% for FY2011. On account of revenue traction in domestic formulations business the most profitable business segment and possible breakeven of UK subsidiary, ramp up in US business and API export business. We maintain our revenue and earnings estimates for FY 10E and FY 11E. On account of price performance in the stock we downgrade our rating on the stock to Outperformer with a price target of Rs 340 based on 8.5x FY 2011E.”

Stock views on Anant Raj Industries, Vivimed Labs, KEI Industries

FinQuest Securities on KEI Industries - Target Rs 49

FinQuest Securities has recommended a buy rating on KEI Industries with a target price of Rs 49 in its research report.

"With capacity expansion in place, growth in infrastructure investments, we expect KEI to return on a strong growth path. We expect the EPS of the company to be at INR 6.1 in FY11E from INR 0.2 in FY09. The company is currently trading at 4.9x and 4.6x its FY11E PE and EV/EBITDA respectively. We rate the stock as 'BUY' with a target price of INR 49.0," says FinQuest Securities' report.


Sunidhi Securities & Finance on Vivimed Labs - Target Rs 120

Sunidhi Securities & Finance has recommended a buy rating on Vivimed Labs with a target price of Rs 120 in its research report.

"Vivimed’s vide range of specialty chemicals, leading global clientele base in the FMCG space, sizable demand of its products, outsourcing potential and improving performance give strong visibility to revenue & profitability in the future. We recommend 'BUY' with a target price of Rs 120 in the medium term," says Sunidhi Securities & Finance's research report.


Motilal Oswal on Anant Raj Industries - Target Rs 194

Motilal Oswal has recommended a buy rating on Anant Raj Industries with a target price of Rs 194 in its research report.

"ARIL has a robust business model with multiple revenue streams and high monetization visibility. We expect revenues to increase at 50% CAGR over FY09- 12 and net profit to increase at 18.2% over FY09-12. The stock trades at 1.1x FY11E BV of Rs 127 and 27% discount to its FY11 NAV of Rs 194, which is attractive compared to industry peers that trade at 1.7x FY11E BV and 2% premium to NAV. We initiate coverage with Buy; our target price is of Rs 194," says Motilal Oswal's research report.