Sunday, November 15, 2009

Mid-term Picks by ULJK Securities

Rural Electrification Corporation Ltd

Charts | News/Announcements | Quarterly Results | P&L | Price History

BUY

MARKET PRICE: Rs 226.85

TARGET PRICE: Rs 270

The increased thrust on the power sector provides tremendous lending opportunity for the NBFC. It enjoys a strong NIM of approx 4%, resulting in strong bottom line for the company. It is also planning to come out with an FPO in Q4FY10 which will further enhance its capital base.

IRB Infrastructure Developers Ltd;

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

BUY

MARKET PRICE: Rs 258.35

TARGET PRICE: Rs 294

Surat–Dahisar project will record toll collections worth Rs 2,149.85 million in FY 2010E and Rs 2,271.03 million in FY 2011E. Being the prominent player in road projects, it’s expected to get benefited by huge investment plan during 11th Plan as well as 12th Plan periods.

Mphasis Ltd:

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

BUY

MARKET PRICE: Rs 772.75

TARGET PRICE: Rs 866

On the back of stabilising billing rates, improved utilisation, expecting improvement in order from its parent HP and improvement in ITO markets which contribute 40% of the revenues, we expect decent growth in top line. We expect the EBITDA margins to stabilise 26%.

NIIT Ltd:

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

BUY

MARKET PRICE: Rs 64.50

TARGET PRICE: Rs 90

On the back of the government’s thrust on education and to allocate more funds (targeting 6% of the GDP) helps improve its School Learning Solutions. Improving sentiments in the IT industry supports its Individual Learning Solutions. We believe NIIT will maintain its EBITDA margins at 12.5% for FY11.

Ranbaxy Laboratories Ltd;

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

BUY

MARKET PRICE: Rs 412.65

TARGET PRICE: Rs 550

The drug ban issue with the USFDA is likely to get resolved by Q1-Q2CY10 which will translate into a 15-20% rise in US sales. Considering the likely commencement of sales of the high margin Valacyclovir from CY10 onwards, the company’s EBIDTA margin expansion could be much higher.

Source :
ET Bureau

ULJK Securities has suggested the following five stocks as the mid-term picks.

DISCLAIMER: The views expressed in these pages are from brokerages, analysts and fund managers. Readers should seek professional investment advice before acting on any recommendation. ET does not associate itself with the choices. Check out the ET Code of Ethics at www.economictimes.com

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