Buy JP Associates, target of Rs 250: IIFL

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its August 24, 2009 research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.
Source : Money Control

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Buy DCM Shriram Industries, target of Rs 175: Sunidhi Sec

Sunidhi Securities & Finance has recommended a buy rating on DCM Shriram Industries with a target price of Rs 175 in its August 12, 2009 research report.

"In view of DCMSIL’s diversified business model, expected lower domestic sugar production, increase in the sugar consumption, increasing sugar prices coupled with improved Q1FY10 results by DCMSIL, the shares are recommend to 'BUY' with a target of Rs 175 in the medium term," says Sunidhi Securities & Finance's research report.
Source : Money Control

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Accumulate Mphasis, target of Rs 560: Emkay

Emkay Global Financial Services has recommended an accumulate rating on Mphasis with a target price of Rs 560 in its August 21, 2009 research report.

"Mphasis beats expectations yet again with USD 232 million (+9.2% QoQ, highest in the sector once again). ITO leads the way with a 13% sequential growth; Apps/BPO grow by 9%/6% QoQ. Higher revenue/operating margins combined with lower translation losses and effective taxes drive net profit beat. Still like Mphasis as the best demand play in the sector however cut our rating to 'ACCUMULATE' with a revised target price of Rs 560," says Emkay Global Financial Services' research report.
Source : Money Control

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Buy Crompton Greaves, target of Rs 365: Hem

Hem Securities has recommended a buy rating on Crompton Greaves with a target of Rs 365 in its August 22, 2009 research report.

"The company has reported good set of numbers for the quarter ended June 2009. Net sales stood at Rs.21975.20 million up by 8.00% from the corresponding quarter last fiscal, thereby converting in operating profit of Rs.2476.00 million. Looking at the strong financial and quarterly results, we recommend 'BUY' on this stock with a medium-term price target of Rs.365.00," says Hem Securities' report.
Source: Money Control

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Buy Apollo Tyres, target of Rs 53: Sharekhan

Sharekhan has maintained its buy rating on Apollo Tyres with a target price of Rs 53 in its August 20, 2009 research report.

"According to media reports, Apollo Tyres is contemplating to increase tyre prices in the wake of rising raw material prices. Price of natural rubber, the key input for tyre manufacturers, has inched to around Rs102/kg at present from the low of around Rs70/kg in January 2009. At the current market price the stock is trading at 5.4x its FY2011 earnings and EV/EBITDA of 2.5x. We maintain our Buy recommendation with price target of Rs 53," says Sharekhan's research report.
Source : Money Control

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Add Sterlite Ind, target Rs 684: IIFL

IIFL has recommended an add rating on Sterlite Industries with a 12-month price target of Rs 684 in its report dated August 20, 2009.

"Sterlite has raised its bid for ASARCO’s acquisition with the upfront cash component now at USD 2.1 billion along with an unchanged USD 207 million in staggered note payments. This bid would be value-neutral at long-term copper prices of USD 4,500/tonne. Current copper price is at USD 6,100/tonne, thereby leaving headroom for further increase in the bid-amount. ASARCO falls within the highest quartile in terms of cost of production. This acquisition would be a departure from the company’s strategy of being cost leader in all its businesses. Sterlite is already executing a number growth projects in India with potential of further expanding its capacity in power business which in our view could be more value accretive as compared to ASARCO’s acquisition. Add Sterlite Industries, with 12-month price target of Rs 684," says IIFL's report

Source: Money Control
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Add Housing Development Finance Corporation: IIFL

IIFL has recommended an add rating on HDFC in its report dated August 20, 2009.

"Over the past few years, HDFC has transformed itself from a pure mortgage player to a financial services conglomerate that derives 44% of its value from non-mortgage businesses. HDFC has three distinct strengths that distinguish it from an average bank or NBFC. Firstly, it has a low-cost and diversified funding base. Its AAA credit rating and familiarity amongst retail depositors allow it to borrow at very competitive rates. Secondly, its operating costs are by far the lowest amongst all financial intermediaries in India and perhaps globally. And finally, its credit costs have consistently remained low and are also the lowest in the industry. Growth prospects remain bright for all businesses and investors can trust HDFC for flawless execution. This, in our view, justifies the stock’s premium valuation of 4.0x FY11ii P/B," says IIFL's report.

Source : Money Control
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Buy Bharti Airtel, target of Rs 453: Sharekhan

Sharekhan has maintained its buy rating on Bharti Airtel with a target price of Rs 453 in its August 19, 2009 research report.

"For April-June 2009 quarter, Bharti Airtel (Bharti) has been successful in strengthening its gross revenue (GR) market share to 33.8% and maintaining its subscriber market share at 24%, despite the tough competition due to entry of new players. We maintain our 'Buy' recommendation and price target of Rs 453 for the stock," says Sharekhan's research report.

Source : Money Control
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Add Ambuja Cements, target of Rs 110: IIFL

IIFL has maintained its add rating on Ambuja Cements with a target price of Rs 110 in its August 13, 2009 research report.

"We reiterate our positive view on Ambuja Cements (ACL), post our meeting with the management. The company’s 2.2mtpa Bhatapara clinker expansion is nearing completion and is likely to be commissioned in September 2009. Post stabilisation of this unit in 1QCY10, ACL will stop buying clinker for its Farakka unit. High-cost coal inventory was exhausted in 2QCY09 and ACL’s average price of imported coal is likely to be 25% lower in 3QCY09 compared to 2QCY09 (40% of the coal ACL uses is imported)."

Source : Money Control.

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Hold Shree Cements, target of Rs 1750: Sharekhan

Sharekhan has maintained its hold rating on Shree Cements with a target price of Rs 1750 in its August 12, 2009 research report.

"Despite the overall slowdown in the economy, the revenue of the company grew by a robust 29% in FY2009. We maintain our Hold recommendation on the stock with price target of Rs 1,750 (valued at EV/tonne of USD90)," says Sharekhan's research report.

Source : Money Control

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Buy KSK Energy, target of Rs 225: IIFL

IIFL has recommended a buy rating on KSK Energy with a 12-month target of Rs 225 in its August 11, 2009 report.

"KSK Energy (KSK) builds and operates power plants on the ‘group captive generation’ principle, making its revenue model a unique one in India. It currently has 144MW capacity operational, and is set to commission an additional 675MW through 3QFY10-1QFY11 in phases. Successful completion of these projects would showcase KSK’s ability to undertake 3.6GW projects at Chhattisgarh, and enhance visibility of projects for a further 6GW."

Source : Money Control.

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Grasim an underperformer, target Rs 2303: Karvy

Karvy Stock Broking has maintained its underperformer rating on Grasim Industries with a revised price target of Rs 2303 in its report dated August 11, 2009.

"We have revised our earning estimates and price target upward due to delay in cement price decline and cost reduction. However despite earning upgrade; the company is currently trading at PER multiple of 11.3x and EV/EBIDTA multiple of 5.3x on FY11E earning. Looking at bleak outlook for cement and VSF segment; we maintain our underperformer rating with revised target price of Rs 2,303 based on our SOTP valuation," says Karvy Stock Broking's report.

Source : Money Control.

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Hold Sanwaria Agro Oils, target of Rs 72: KRChoksey

KRChoksey has maintained its hold rating on Sanwaria Agro Oils with a price target of Rs 72 in its report dated August 10, 2009.

"The consumption of soy oils is outstripping the production and also use of oils for bio fuels will be a key bullish factor for increasing demand of soy oil. Also, margins for SAOL will improve with production of production of soyabean derivative products having higher margins. With this, we maintain our ‘HOLD’ recommendation on Sanwaria Agro Oils, with a target price of Rs 72 giving an upside potential of 10% from its current levels," says KRChoksey's report

Source: Money Control.

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Sell Ambuja Cements - Indiabulls Securities (Report)

Indiabulls Securities Research has maintained its sell rating on Ambuja Cements in its July 30, 2009 research report.

"Ambuja Cements’ results for Q2’09 were a mixed bag. While net sales grew by 18.2% yoy led by a healthy growth in sales volumes and realisations, the EBITDA margin declined by 248 bps yoy and the adjusted net profit fell 3.7% yoy. Our revised fair value estimate of Rs. 92 per share reflects a 10.4% downside from the current market price; hence we maintain our Sell rating," says Indiabulls Securities' research report.

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Accumulate HDIL, target of Rs 280 says Prabhudas Lilladher

Prabhudas Lilladher has maintained its accumulate rating on Housing Development and Infrastructure (HDIL) with a target of Rs 280 in its July 29, 2009 research report.

"HDIL reported revenues to the tune of Rs 2,954 million, a decline of 48% YoY. Revenues were largely led by sales of TDRs. The company sold 1.8 million TDRs during the quarter at an average rate of Rs 1,500/sq.ft. HDIL generated approximately 2 million sq.ft of TDRs during the quarter and currently has 0.5 million sq.ft of TDRs in its inventory. The company reported strong EBITDA margins of 83% due to the large proportion of TDR sales which led to profits increasing by 73.6% QoQ. We have estimated HDIL’s NAV at Rs 312/share. We are valuing the company at 10% discount to NAV which translates to Rs 280. We maintain ‘Accumulate’ rating on the stock," says Prabhudas Lilladher's research report.

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Buy Sterlite Industries says KRChoksey

KRChoksey has recommended a buy rating on Sterlite Industries, in its report dated July 30, 2009.

"Sterlite’s strength lies in its strong balance sheet and lowest cost of operations; with companies foray in to power business its profitability will go up further from next financial year. We value the firm by SOTP method which gives us a valuation of Rs 734 per share and recommend buy rating on the stock," says KRChoksey's report.
Source : Money Control

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Hold Reliance Industries, target of Rs 2020: Sharekhan

"Reliance Industries Ltd (RIL)’s performance in Q1FY2010 was below our and street’s expectations mainly on account of lower-than-expected gross refining margin (GRM) and higher effective tax rate. The company disappointed the street with its GRM declining to USD 7.5 per barrel from USD 15.7 per barrel in Q1FY2009 and USD9.9 per barrel in Q4FY2009. We expect that the ramp-up of gas production from KG D- 6 basin and the stabilisation of RPL’s refinery will be the key drivers of the company’s growth in FY2010 and FY2011. However, lower-than-expected petrochem margins and delay in the ramp-up of gas production from KG D-6 field remain the key risks to our estimates and valuations."

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Hold JP Associates, target of Rs 266: Sharekhan

"In Q1FY2010 JP Associates Ltd (JAL) has reported strong top line growth for all its business verticals. The reported bottom line of the company grew by 2.9x year on year (yoy) due to one-time items. We continue to value JAL using SOTP methodology and value the stock at Rs 266 per share. We have now rolled over our target multiple for cement and E&C business to FY2011. We value the company’s cement business at 6x EV/EBITDA, this implies EV/tonne of US$100 per tonne (based on our capacity expectation of 19.5MTPA in FY2011). For the construction division, we have assigned target EV/ EBITDA multiple of 6x, which is at over 50% discount to that of Larsen & Toubro. For the real estate projects, we have valued Jaypee Greens and Taj Expressway at 1x of its NAV, given the early signs of revival in demand and overwhelming response for JAL’s projects during the quarter."
Source : Money Control.

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Buy Anant Raj Industries for short-term target of Rs 134-150: Nirmal Bang

Buy Anant Raj Industries for short-term target of Rs 134-150: Nirmal Bang
Nirmal Bang has recommended buying Anant Raj Industries for short-term target of Rs
134-150.

“Buy Anant Raj Industries on on dips. The stock has strong support at Rs 106-101 levels. Short term target could be around Rs 134-150,” the report said.

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Buy Aurobindo Pharma for target of Rs 545: India Infoline

Buy Aurobindo Pharma for target of Rs 545: India Infoline
India Infoline has advised traders to buy Aurobindo Pharma for target of
Rs 545.
“On the daily chart, Aurobindo Pharma has given a bullish breakout and in the process has also made an intermediate top, suggesting that its short-term trend has also turned up. Over the last four weeks, the stock was consolidating in the range of Rs 425-506, before finally breaking out on Wednesday. The upmove was well supported by healthy volumes, which suggest accumulation. Other technical oscillators are also positive. We recommend traders to buy the stock between the range of Rs 515-523 for target of Rs 545. It is advisable to maintain a stop loss of Rs 507,” said the technical note.

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