Medium to Long Term Stock Picks - May 25

Posted by admin in Companies, Mid Term Picks on May 24th, 2010 | one response

Broking house Unicon Financial has suggested these stocks for mid-term picks of the day.

Source: http://economictimes.indiatimes.com/articleshowpics/5970785.cms

IndusInd Bank Ltd

RECOMMENDATION: Buy
Market Price: Rs 185
Target Price: Rs 222
INDUSIND BANK is planning to increase its branch network thereby aiding CASA growth, which will help the bank maintain its NIMs at ~3-3.2% levels in FY11E. Bank is expected to deliver healthy bottom-line growth in FY11. The stock is trading at a P/B multiple of 3.2x.

Elder Pharmaceuticals Ltd

RECOMMENDATION: Buy
Market Price: Rs 350
Target Price: Rs 403
GROWTH FROM brands like Shelcal, Chymoral and Edervit is expected to continue. Phytomega’s rural division is expected to contribute significantly to revenues . The stock’s P/E is 11.2x and stock to trade at ~15% upside from current levels. Investors can expect stable medium- to long-term returns.

Greaves Cotton Ltd

RECOMMENDATION: Buy
Market Price: Rs 336
Target Price: Rs 410
GCL, INDIA’S engineering leader, specialising in diesel/petrol engines, gensets, agro and construction equipment, trades at 12.3x its consensus per share earning of Rs 29 for FY11e. Buy for Rs 410 discounting its FY11e at 15x, given the firm and sustainable growth in construction and auto industries.

Bartronics India Ltd

RECOMMENDATION: Buy
Market Price: Rs 142
Target Price: Rs 232
BARTRONICS INDIA could have strong traction in AIDC with a CAGR of ~50% in FY10-12. 3G auction could increase the per card realisation by ~20%. MCD revenues, to flow from Q3FY11, could bring ~Rs 500 crore annual revenue. We recommend a buy at 6.2x our FY11e EPS.

Jagran Prakashan Ltd

RECOMMENDATION: Buy
Market Price: Rs 107
Target Price: Rs 135
JAGRAN PRAKASHAN’S acquisition of Mid-Day publications, willl help positions it to capitalise on the print media’s circulation and advertisement growth. Blackstone’s Rs 225 crore investment will fund expansion plans. Stock at 18.6x its FY12e consensus EPS.