Hemen Kapadia, chartpundit.com is of the view that Pantaloon looks good from medium term perspective and forHavells India expects more headroom left over the next three-six months.
Kapadia told CNBC-TV18, “Pantaloon I have a buy call for the past three-four weeks. If you look at the weekly charts it has given an upward breakout from ascending triangle formation. It sort of stagnated a bit for a couple of weeks and now it has picked up so not only have we set off in an intermediate uptrend and this could very well convert into a longer term uptrend because the month of November, Pantaloon almost gave a upward reversal on the monthly chart after a 4.5 month consolidation. So this is going to continue, I do not mean from a day or two point of view but from medium term this looks great.”
He further added, “Havells India was looking good yesterday. Infact since October end Havells has commenced an intermediate uptrend progressively higher tops and bottoms. I think this is also entered a longer term uptrend. So baring a few hiccups we still have a lot more headroom left over the next 3-6 months.”
Buy Infosys Tech; target of Rs 3020: Angel
Angel Broking is bullish on Infosys Technologies and has recommended buy rating on the stock with a target of Rs 3020, in its December 16, 2009 research report.
“Infosys has always focused on organic growth, maintaining its profitability and creating shareholders value, which the company achieved even during the global economic turmoil in FY2009. We believe the company is well poised to take advantage of the upcoming opportunities and face the challenges through its novel business plans and quality manpower. While the Infosys management at the analyst meet did indicate that near-term pressure on IT Budgets is expected to continue, we remain confident of the fact that in-line with the global economic recovery, demand for Indian IT services will be back to the forefront and companies like Infosys stand to benefit in particular on account of the availability of talent and delivery from a low-cost base.”
“Thus, considering the above and the increasing focus of the company on non-linear initiatives along with its strategy to focus on newer geographies and services, we remain positive on the company. In this note, we also introduce our FY2012 estimates for Infosys and roll over our target price on FY2012 basis. At the CMP, Infosys trades at 21.7x its FY2011E EPS and 18.5x its FY2012E EPS, which leaves room for further upside. Thus, we recommend a BUY on the stock with a 15-month Target Price of Rs 3,020 (Rs 2,475), valuing the stock at 22x its FY2012E EPS,” says Angel Broking research report.
Buy JK Tyre; price of Rs 192: Emkay
Emkay Global Financial Services has recommended buy rating on JK Tyre and Industries with a target price of Rs 192.
“Despite concerns on account of spiraling raw material prices and strike at its Rajasthan plant, we find JK Tyres (JKT) an attractive valuation pick. We are factoring in a sharp drop of 27% in our FY11 consolidated earnings estimates to Rs 38.5 per share. For standalone business, we expect a 25% decline in FY11 earnings to Rs 30 per share. For its subsidiary, 'Tornel' we expect a 41% earnings decline in FY11 to Rs 8.5 per share. We are conservative in our estimates on Tornel due to limited availability of information.”
“Despite such a sharp drop in FY11E earnings, at CMP of Rs 150, the stock trades at a PER, EV/EBIDTA and P/B of 3.9x, 4.2x and 0.7x respectively. We believe that there is ample scope for positive surprises - like commencement of new TBR capacity from October 2009, increase in PCR capacity by 10% to 5 mn tyres in FY11, price hikes to pass on the cost pressures. Similarly for Tornel, higher capacity utilization is likely to result in positive surprises. We are not assuming any significant increase in capacity utilization at the current juncture. We initiate coverage on the stock with a Buy rating and a target price of Rs 192,” says Emkay Global Financial Services.
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