Mid Term Stock Picks - Apr 18, 2011

Posted by admin in Articles on Apr 17th, 2011 | no responses

The following stocks have recommended for Mid Term Investment by Broking House Nirmal Bang Securities

Redington India

Recommendation: Buy
Market Price: Rs 84
Target Price: Rs 107
Redington is an end-to-end SCM of IT and non-IT products company. It is expected to expand its business, both organically and in organically. The recent tie-ups with Apple and Dell are expected to push up the company’s top-line.

Apar Industries

Recommendation: Buy
Market Price: Rs 230
Target Price: Rs 354
The return to normal margins in the conductor business by FY12, post completion of lower-margin orders taken during the lean period, coupled with an improvement in volume, will drive profitability in the conductor’s business. Better product mix will improve margin in the oil business. The high growth opportunity in the power sector will drive volume growth of Apar in all the three segments - conductor, oil & power cables.

ING Vysya Bank

Recommendation: Buy
Market Price: Rs 333
Target Price: Rs 500
Growth in advances will continue to be ahead of the industry. Further improvement in asset quality and focus on CASA will help the bank protect its NIM margins and improve RoE. Currently, the bank is trading at a significant discount to its peers and is available at a fairly attractive 1.08x adjusted P/BV of FY12E.

Ajanta Pharma

Recommendation: Buy
Market Price: Rs 225
Target Price: Rs 295
With its niche speciality focus, Ajanta Pharma has made a noteworthy presence in the emerging markets. Entry into the world’s largest generic market, deeper penetration into domestic markets and additional of new therapeutic segments will spur Ajanta Pharma’s groeth. To sustain the growth, the company has made substantial investments to increase its capacity and filed force. We expect APL’s net revenuesto grow at at a CAGR of 16.7% during FY11-12 with bottom-line growing at a higher pace at 30.55 CAGR during the same period.