On Fri, Feb 5, 2010 at 10:13 PM, Arun <arungandhis@gmail.com> wrote:

Mid-term picks of the day NOTE: DONOT PURCHASE ON 05 FEB 2010 as the market will fall !!!!   Dhampur Sugar 5 Feb 2010, 0508 hrs IST

RECOMMENDATION: Buy MARKET PRICE:Rs 125 TARGET PRICE:Rs 191 Apart from bumper profits in sugar produced by sugarcane crushing operations, the company will generate huge profits from processing imported raw sugar that was purchased at very low cost. Profits to quadruple in FY10 . The stock trades at valuations of 3.1x FY10e EPS and 4.2x FY11e EPS.

 

 

 

Apollo Tyres 5 Feb 2010, 0503 hrs IST

RECOMMENDATION: Buy MARKET PRICE:Rs 55 TARGET PRICE:Rs 66 Strong Demand environment from OEMs and replacement market coupled with the capacity addition of 100 tpd at its new plant in Chennai will add significantly to volume growth in FY11. At the current market price, the stock is trading at 7.3x and 6.6x its FY11e and FY12e consolidated earnings of Rs 7.5 and Rs 8.3.

 

Greaves Cotton 5 Feb 2010, 0458 hrs IST

RECOMMENDATION: Buy MARKET PRICE:Rs 280 TARGET PRICE:Rs 365 The robust volume growth in the sales of its key clients like M&M and Piaggio is likely to drive overall volume growth in the engine division. Supplies to Tata Motors will start in the next year, aiding further volume growth. The stock is trading at 12.7x and 9.8x its FY10e and FY11e earnings of Rs 22 and Rs 28.6.

 

Pratibha Industries 5 Feb 2010, 0454 hrs IST

RECOMMENDATION: Buy MARKET PRICE:Rs 325 TARGET PRICE:Rs 450 The company has a strong and diversified order book of Rs 3,500 crore with a major presence in water & irrigation and urban infrastructure segments. We expect 37% and 33% CAGR in sales and PAT respectively over FY09-12E. At CMP, the stock is trading at 6.6x its FY11 earnings that is cheap compared to its peers.

 

Torrent Pharma 5 Feb 2010, 0449 hrs IST

RECOMMENDATION: Buy MARKET PRICE:Rs 451.3 TARGET PRICE:Rs 554 With domestic operations along with Brazil, US and Mexico geographies as key growth drivers, we expect revenue CAGR of 13% and the adjusted earnings CAGR of 24% over FY10-12. At the current market price, the stock is trading at 11.4x and 9.9x its FY11e and FY2012e consolidated earnings.

Patience & politeness are a reflection of a person's inner strength.