Monday, 27 October 2008

Buy Shree Cements, target of Rs 653: Karvy

Karvy Stock Broking has recommended a buy rating on Shree Cements with a target of Rs 653 in its October 27, 2008 research report. "Net sales grew by 34.9% yoy to Rs 6.29 billion mainly on account of volume growth of 42% to 2.0 million tones (inclusive of clinker sales). The company has reported adj. net profit of Rs 1.07 billion."

"At the current market price of Rs 378, the company is trading at PER multiple of 3.4x, EV/ EBIDTA multiple of 2.5x and EV/ton basis at USD 46/ tones on FY10E earnings. We have valued the company on EV/EBIDTA of 4x and rate the company as BUY with price target of Rs 653," says Karvy Stock Broking's rearch report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:55 0 comments

Buy Everest Kanto, target of Rs 310: Karvy

Karvy Stock Broking has maintained its buy rating on Everest Kanto Cylinder with a target of Rs 310 in its October 27, 2008 research report. "During 2QFY09 the company reported revenues of Rs 2,210 million, a strong YoY growth of 73% and sequential growth of 16.8%. EKC reported net profit of Rs 432 million as against Rs 284 million reported during 2QFY08. We expect the company's revenues and profit to grow by 62% CAGR from FY08-FY10. At the CMP of Rs 157 the stock trades at a PE of 6.1x its FY10E earnings. We continue to maintain our BUY rating on the stock with the price target of Rs 310," says Karvy Stock Broking's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:55 0 comments

Buy Reliance, target of Rs 1734: Motilal Oswal

Motilal Oswal has recommended a buy rating on Reliance Industries with a target of Rs 1734 in its October 24, 2008 research report. "Reliance Industries reported 2QFY09 PAT of Rs 41.2 billion (our est. Rs 41.9 billion); up 7.4% YoY and flat QoQ. We have reduced our FY09 EPS estimate by 3.5% to Rs 108 to account for increased interest cost and lower price for its oil sales and FY10 EPS estimate by 8% to Rs 190."

"We have also reduced our SOTP based target to Rs 1,734 to factor in 1) lower multiple assigned to RIL's core business,due to subdued business outlook 2) cut in share of profit from RPL (reduced GRM assumptions), and 3) revised retail business value (increased risks). We remain positive on the company primarily due to large potential upsides from E&P. The stock currently trades at 9.4x FY09E and 5.3x FY10E EPS. Buy," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:50 0 comments

Buy GAIL, target of Rs 372: Motilal Oswal

Motilal Oswal has maintained its buy rating on GAIL India with a target of Rs 372 in its October 24, 2008 research report. "It reported PAT at Rs 10.2 billion, up 79% YoY from Rs 5.7 billion and 14% QoQ from Rs 8.9 billion. We remain positive on GAIL in view of increase in gas transmission volumes going forward. We expect GAIL’s transmission volumes to increase by 55% in FY10 to 130mmscmd."

"We are cutting our FY09 and FY10 EPS estimates by 4% to factor in the reduction in our LPG price assumption based on recent sharp correction in crude prices. We have also reduced FY10 gas volumes to 130mmscmd to account for delay in commencement of RIL’s gas production to 4QFY09. Our FY09 estimates could see a boost if subsidy burden is reduced due to fall in oil prices. The stock trades at 7.5x FY09E EPS. Our target price is Rs 372 per share. We reiterate Buy," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:50 0 comments

Hold Phillips Carbon, target of Rs 139: Nirmal Bang

Nirmal Bang has maintained its hold rating on Phillips Carbon Black with a revised target of Rs 139 in its research report. "PAT for Q2FY09 was Rs 15.4 crore as against Rs 24 crore in Q2FY08 down by 36.1% YoY basis and Rs 14.4 crore in Q1FY09 up by 6.5% on QoQ basis. Tyre manufactures being the major customers of the company & looking at the slowdown in the Auto sector we revise our earnings expectations for the company & reiterate a HOLD rating on the stock with a long term view with a revised target of Rs 139 per share," says Nirmal Bang's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:49 0 comments

Buy Grasim Inds, target of Rs 1725: Motilal Oswal

Motilal Oswal has maintained its buy rating on Grasim Industries with a target of Rs 1725 in its October 23, 2008 research report. "Revenues grew 8.4% YoY to Rs 26.8 billion, driven by 17% growth in cement revenues and 45% growth in sponge iron revenues. However, higher other income and lower tax provisioning restricted PAT decline at 16% to R 4.2 billion."

"We are revising our earnings estimates downwards by 7.8% (to Rs 250) for FY09 and by 21.8% (to Rs 202) for FY10 to factor in higher cost push in cement and sponge iron, lower VSF demand and pricing, and change in cement pricing assumption. The stock is valued at 4.7x FY09E consolidated EPS, and EBITDA of 3.4x FY09E EV and USD 46/ton. We maintain Buy with a target price of Rs 1,725 (SOTP-based)," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:48 0 comments

Buy Bajaj Auto, target of Rs 905: Motilal Oswal

Motilal Oswal has maintained its buy rating on Bajaj Auto with a target of Rs 905 in its October 24, 2008 research report. "Revenues grew 8% to Rs 25.5 billion. Lower depreciation (by 33%) and lower tax rate (at 30.5% of PBT v/s 33.4% in 2QFY08) boosted recurring PAT to Rs 2.27 billion (5% de-growth). We are upgrading our earnings estimates by 12% to Rs 62.5 for FY09 and by 10.8% to Rs 72 for FY10 to factor in savings from the VRS at the Akrudi plant and savings in raw material cost. The stock trades at 7.4x FY09E and 6.4x FY10E EPS. We maintain Buy, target of Rs 905," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 15:47 0 comments

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.