Stock views on Triveni Engineering, Shree Renuka Sugars

India Infoline on SHREE RENUKA SUGARS

In the midst of a weak pricing scenario over the past two years, Renuka Sugars continues to expand through acquisitions and greenfield projects. It will invest Rs 3.5 bn in a 2,000-tpd refinery in Mundra SEZ to be commissioned by 2010. This will take its refining capacity to 6,000 tpd. With sugar prices set to improve by end of 2008-09 crushing season, ongoing capex would boost sugar volumes.


Centrum Broking on Triveni Engineering

Triveni Engineering (TEIL) is among the largest sugar producers in India with a presence in sugar and engineering segments. This makes the stock a strong play in the sugar cycle at relatively lower risk, given its additional presence in engg business. We expect the company to clock 21.9% revenue and 58.1% net profit CAGR over FY08-10E. Sugar prices will rise, given the domestic and global deficit situation.

Stock views on Bharti Airtel, Triveni Engineering, VST Tillers, Time Technoplast

Anand Rathi on Bharti Airtel - Target of Rs 850

Anand Rathi Securities has initiated a buy rating on Bharti Airtel with a target price of Rs 850 in its November 22, 2008 research report. "We believe Bharti offers a rare combination of high quality, solid and visible earnings growth at attractive valuations. The company is best placed to ride regulatory bumps, thanks to its superior scale and strong balance sheet. We initiate with a Buy and Sep ’09 target price of Rs 850," says Anand Rathi's research report.

PINC Research on Time Techno - Target of Rs 50

PINC Research has maintained its buy rating on Time Technoplast with a target of Rs 50 in its November 21, 2008 research report. "We have moderated our outlook primarily due to the deteriorating economic conditions. Even though feedstock prices continue to ease, we believe the bigger threat to earnings is from lower offtake from the auto sector. We remain confident of the company’s ability to sustain margins in the 19-20% band and maintain our ‘BUY’ recommendation, but have revised downwards our price target to Rs 50 to reflect the lower earnings," says PINC's research report.

PINC Research on Triveni Engineering - Target of Rs 45

PINC Research has upgraded its rating on Triveni Engineering to buy with a target of Rs 45 in its November 21, 2008 research report. "Triveni Engineering and Industries Ltd. (TEIL) reported a YoY growth of 41% in net sales to Rs 4.3 billion for Q4FY08. Net profits surged by 5.4x to Rs 270 million. Although we expect the profitability to be impacted by higher cane price, we believe the same would be partially compensated by liquidation of low cost sugar of SS 07-08 and better distillery product prices. Hence, we upgrade our recommendation to ‘BUY’ with a price target of Rs 45 (valuing at 6.5x) on a one year investment perspective," says PINC's research report.

Sunidhi Securities on VST Tillers - Target of Rs 135

Sunidhi Securities & Finance has recommended a buy rating on VST Tillers Tractors with a target of Rs 135 in its November 21, 2008 research report. "During Q2FY09 OP & NP margins stood at 16.7 and 10% against 13.7 and 7.2% respectively. During H1FY09 OP margin has moved up from 13.1% to 14.6% and net margin surged from 7% to 8.3%. VSTTL expects to continue its progress in establishing a sizeable market share for power tillers in states such as West Bengal, Karnataka, Orissa and Andhra Pradesh during the coming years. This apart, the prospects of exporting power tillers appear to be bright."

"During FY09, sales are expected to go up by 40% to Rs 260 crore and net profit by 45 per cent to Rs 20.9 crore, which would yield an EPS of Rs 36. We recommend BUY with a target of Rs 135 in the medium term. The 52-Week high and the low of the share has been Rs 259/88," says Sunidhi Securities & Finance's research report.

PINC Research on Triveni Engineering, Deepak Fertilizers, Time Techno

Triveni Engineering - Target of Rs 45
PINC Research has upgraded its rating on Triveni Engineering to buy with a target of Rs 45 in its November 21, 2008 research report. "Triveni Engineering and Industries Ltd. (TEIL) reported a YoY growth of 41% in net sales to Rs 4.3 billion for Q4FY08. Net profits surged by 5.4x to Rs 270 million. Although we expect the profitability to be impacted by higher cane price, we believe the same would be partially compensated by liquidation of low cost sugar of SS 07-08 and better distillery product prices. Hence, we upgrade our recommendation to ‘BUY’ with a price target of Rs 45 (valuing at 6.5x) on a one year investment perspective," says PINC's research report.

Deepak Fertilizers - Target Rs 80

PINC Research has recommended a buy rating on Deepak Fertilizers, with price target of Rs 80, in its report dated November 7, 2008. "Deepak Fertilisers and Petrochemicals Corporation (DFPCL) posted net sales of Rs 3.8 billion in Q2FY09 (+ 67% YoY). Revenues from chemical segment jumped by 63% to Rs 2.5 billion due to price & volumes increase in AN (Ammonium Nitrate) and fertilisers along with increased trading revenues. Sales of manufactured fertiliser surged by 4x to Rs 586 million pushing fertiliser sales up by 71% to Rs 1.2 billion. Consequently, net profit surged by 91% to Rs 418 million."

"At the CMP of Rs 59, DFPCL is trading at a P/E of 3.7x, EV/Sales of 0.6x and EV/EBIDT of 2.6x discounting its FY10 estimates. Spike in chemical prices, favorable fertiliser policy and expected increase in availability of gas augurs well for DFPCL. Accordingly, we expect higher sales volumes of methanol and fertilisers in FY10. With the recent correction in its stock price, DFPCL is available at attractive valuations. Hence we revise our recommendation upwards to ‘BUY’ with a target price of Rs 80 on a time horizon of 6-12 months. Our target price implies a PE of 5x FY10E earnings," says PINC's research report.

Time Techno - Target of Rs 50

PINC Research has maintained its buy rating on Time Technoplast with a target of Rs 50 in its November 21, 2008 research report. "We have moderated our outlook primarily due to the deteriorating economic conditions. Even though feedstock prices continue to ease, we believe the bigger threat to earnings is from lower offtake from the auto sector. We remain confident of the company’s ability to sustain margins in the 19-20% band and maintain our ‘BUY’ recommendation, but have revised downwards our price target to Rs 50 to reflect the lower earnings," says PINC's research report.