Mid Term Stock Picks - July 16, 2010

Posted by admin in Companies, Mid Term Picks on Jul 15th, 2010 | no responses

Shown below are some of the stocks recommended by Broking house Prabhudas Lilladher for mid-term picks. (Source: Economic Times)

Asian Paints Ltd

RECOMMENDATION: BUY
Market Price: Rs 2,440
Target Price: Rs 2,600
EARNINGS GROWTH CAGR of 19% for FY10-12E, continued pick-up in urban discretionary demand and leadership position in a growing market with relatively benign competitive intensity, underline our positive investment thesis on Asian Paints. Given its CAGR, we expect the valuations to sustain.

Godrej Consumer Products Ltd

RECOMMENDATION: BUY
Market Price: Rs 373
Target Price: Rs 420
WITH FIVE accretive acquisitions, Godrej may achieve expected 28% earnings CAGR for FY10-12E. Recent acquisitions are expected to add Rs 6,000 lakh to PAT in 2010-11 estimates. Realisation of higher-than-guided earnings accretion of the concluded acquisitions can provide to be an upside trigger.

Infosys Technologies Ltd.

RECOMMENDATION: BUY
Market Price: Rs 2,759
Target Price: Rs 3,250
THERE COULD be positive surprises on margin and realisation as we enter FY11. Though positives outweigh negatives, remain cautious on the currency outlook and growing attrition. The current volume momentum, followed by realisation improvement will help Infosys report ahead of their guidance.

Exide Industries Ltd

RECOMMENDATION: BUY
Market Price: Rs 135.15
Target Price: Rs 148
Exide may increase its the automotive and two-wheeler battery capacity every year, by 15-20%, considering the robust double-digit demand in the OE and the replacement market. The company has guided for a topline growth of 15-20% in FY11E.

Bharti Airtel Ltd

RECOMMENDATION: BUY
Market Price: Rs 298
Target Price: Rs 332
Due to pressure on domestic revenues, Zain African assets offer a good strategic fit for future growth prospects. With the stabilisation of tariffs, domestic scenario, too, is improving. The management has targeted $5 billion in revenues and $2 billion of EBIDTA for Zain African assets by FY13E.