Stock Tips

anilrgowda · 07-02-2008, 05:02 PM

Hind Zinc strong buy: Prime

Prime Broking has initiated coverage on Hindustan Zinc with a Strong Buy rating and price target of Rs 771 by September 2009.

"At the CMP of Rs541, HZL’s FY09E EPS of Rs96.7 is discounted 5.6x and FY10E EPS of Rs98 is discounted 5.5x. Based on our DCF calculation, we have valued HZL at Rs 771 per share by Sep 2009. Our target price implies a P/E multiple of 7.9x and and EV/EBITDA multiple of 6.2x our FY10 estimates. We thus initiate coverage on Hindustan Zinc with a STRONG BUY," the report said.

anilrgowda · 07-02-2008, 05:02 PM

Buy Gati: Kotak Securities

Kotak Securities has maintained its Buy rating on Gati with a revised price target of Rs 120.

"Going forward, we expect strong growth in revenues due to ramping up of the airfreight business due to expected induction of the fourth air freighter by August 2008. Also, GATI has inducted new vessel of 8150 DWT in Q3FY08. The expenses related to start up of air freight business and brand development would be significantly reduced in the following quarters. This would lead to increased revenues and profitability for the company going forward. At Rs.80, the stock trades at 1.8x book value, 16.6x earnings and 11.9x cash earnings based on FY09E. We have also done a one-year forward rolling band analysis for GATI, which revealed that currently the stock is trading at the lower end of the band of 15x-45x one year forward earning estimates. This makes it very attractive at current levels," the report said.

anilrgowda · 07-02-2008, 05:03 PM

Angel revises target for Electrosteel

Angel Broking has maintainted its buy rating on Electrosteel Casting (ECL) with a revised price target of Rs 55.

"We believe that the government’s thrust on water and sewage infrastructure augurs well for ECL. Improving capacity utilisation of DI pipes and fittings, backward integration into key inputs like coking coal and iron ore will be the key positives for ECL’s growth going ahead. However, we are downgrading our estimates owing to the higher-than-expected increase in costs, poor performance of the company in FY2008, delay in mining and expected losses on forex derivatives.

"At the CMP of Rs34, ECL is trading at a P/BV of 0.7x FY2010E BV, which is attractive
considering the company’s backward integration plans and the government’s thrust on water and sewage infrastructure. However, we have de-rated our multiple due to the significant overall de-rating of the peer set along with the adverse macros, which are affecting the overall sentiments in the market. Hence we maintain a Buy on the stock, with a revised Target Price of Rs55 (Rs100)," the report said.

07-02-2008, 05:02 PM	#1 (permalink)
anilrgowda Status: Member Join Date: Jun 2008 Posts: 64	Stock Tips Hind Zinc strong buy: Prime Prime Broking has initiated coverage on Hindustan Zinc with a Strong Buy rating and price target of Rs 771 by September 2009. "At the CMP of Rs541, HZL’s FY09E EPS of Rs96.7 is discounted 5.6x and FY10E EPS of Rs98 is discounted 5.5x. Based on our DCF calculation, we have valued HZL at Rs 771 per share by Sep 2009. Our target price implies a P/E multiple of 7.9x and and EV/EBITDA multiple of 6.2x our FY10 estimates. We thus initiate coverage on Hindustan Zinc with a STRONG BUY," the report said.

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07-02-2008, 05:02 PM	#2 (permalink)
anilrgowda Status: Member Join Date: Jun 2008 Posts: 64	Buy Gati: Kotak Securities Kotak Securities has maintained its Buy rating on Gati with a revised price target of Rs 120. "Going forward, we expect strong growth in revenues due to ramping up of the airfreight business due to expected induction of the fourth air freighter by August 2008. Also, GATI has inducted new vessel of 8150 DWT in Q3FY08. The expenses related to start up of air freight business and brand development would be significantly reduced in the following quarters. This would lead to increased revenues and profitability for the company going forward. At Rs.80, the stock trades at 1.8x book value, 16.6x earnings and 11.9x cash earnings based on FY09E. We have also done a one-year forward rolling band analysis for GATI, which revealed that currently the stock is trading at the lower end of the band of 15x-45x one year forward earning estimates. This makes it very attractive at current levels," the report said.

07-02-2008, 05:03 PM	#3 (permalink)
anilrgowda Status: Member Join Date: Jun 2008 Posts: 64	Angel revises target for Electrosteel Angel Broking has maintainted its buy rating on Electrosteel Casting (ECL) with a revised price target of Rs 55. "We believe that the government’s thrust on water and sewage infrastructure augurs well for ECL. Improving capacity utilisation of DI pipes and fittings, backward integration into key inputs like coking coal and iron ore will be the key positives for ECL’s growth going ahead. However, we are downgrading our estimates owing to the higher-than-expected increase in costs, poor performance of the company in FY2008, delay in mining and expected losses on forex derivatives. "At the CMP of Rs34, ECL is trading at a P/BV of 0.7x FY2010E BV, which is attractive considering the company’s backward integration plans and the government’s thrust on water and sewage infrastructure. However, we have de-rated our multiple due to the significant overall de-rating of the peer set along with the adverse macros, which are affecting the overall sentiments in the market. Hence we maintain a Buy on the stock, with a revised Target Price of Rs55 (Rs100)," the report said.