Mid Term Stock Picks - Aug 13, 2010

Posted by admin in Companies, Mid Term Picks on Aug 12th, 2010 | no responses

Here are some of the stocks recommended for investment with a medium-term investment period by Broking house Prabhudas Lilladher

Bharati Shipyard

RECOMMENDATION: BUY
Market Price: Rs 229.30
Target Price: Rs 291
BHSL’s ORDER book may see gradual accretion from international and domestic orders. Besides, naval orders will provide an additional upside. We are valuing the company based on 5x FY12 PAT, excluding subsidy and dividend income from Great Offshore (GOFF) which translates to `80 per share.

HCL Technologies

RECOMMENDATION: BUY
Market Price: Rs 401.50
Target Price: Rs 500
STRONGER REVENUE momentum in FY11 may drive consensus upgrades. The company’s management has given an optimistic outlook going in FY11 and our below-consensus estimates are attainable(if not beatable). HCL is currently trading at more than 40% discount to its larger peers.

Jain Irrigation

RECOMMENDATION: BUY
Market Price: Rs 1,283
Target Price: Rs 1,500
WE ARE positive on the future prospects due to the untapped potential of micro irrigation system, agricultural business model and strong domestic presence. The management is maintaining its FY11 guidance for 45- 50%, 25% and 20% growth in MIS, agro-processing and piping divisions.

IVRCL Infra

RECOMMENDATION: BUY
Market Price: Rs 159.75
Target Price: Rs 200
WITH REASSURANCE from the management about getting back on track, and robust H2FY11E growth we keep our estimates unchanged. Fund infusion in BOTs and land sales could be some of the triggers, going forward. However, there may be correction in the stock in the short-term owing to muted results.

Tata Motors

RECOMMENDATION: BUY
Market Price: Rs 1,024
Target Price: Rs 1,136
WITH RECOVERY in the markets and cost-cutting, we estimate 21.7% volume growth at 2.4 lakh units in FY11E and an EBITDA margin of 14.5% for JLR. An improvement in the core commercial vehicle business, coupled with recovery at the JLR front may lead to better stock price performance.