Mid Term Stock Picks - Aug 27, 2010

Posted by admin in Companies, Mid Term Picks on Aug 26th, 2010 | no responses

Here are some of the stocks recommended for investment with a medium-term investment view by Broking house Anand Rathi Fin Services

Bajaj Auto

Recommendation: Buy
Market Price: Rs 2,774
Target Price: Rs 3,130
There is strong demand in the two-wheeler segment, especially for its dual offerings — Discover and Pulsar models. The company also has strong presence in the three-wheeler market. The three-wheeler segment fetches higher margins than the company’s two-wheeler business.

Mahindra & Mahindra Finance

Recommendation: Buy
Market Price: Rs 577
Target Price: Rs 748
The company will benefit from increased spending on rural projects and good monsoon. The brand name of its parent will support business growth and keep fund costs low. A 460-branch network in 25 states and over 1,000 dealers of its parent company (M&M) could mitigate geographical risk.

Godrej Consumer Products

Recommendation: Buy
Market Price: Rs 390
Target Price: Rs 430
GCPL IS a market leader in personal, hair, household and fabric-care segments. Strong traction will continue in all acquired businesses, considering their operations in emerging countries. It has gained market share in key segments in India on a year-on-year basis.

Bharti Airtel

Recommendation: Buy
Market Price: Rs 322
Target Price: Rs 350
There will be strong domestic volume growth. Zain’s acquisition will enhance enterprise value. The company is better placed than its competitors with more than 183.4 million subscribers. It has a comfortable leverage position. Domestic tariff wars may be a thing of the past.

Escorts

Recommendation: Buy
Market Price: Rs 190
Target Price: Rs 225
The company may expand agri machinery business capacity and invest in technology development. A good monsoon will help the tractor & farm machinery segments. Margins may improve with price hikes. The railway equipment segment will be a growth driver in the long term.

Source: Economic Times