Mid Term Stock Picks - May 12, 2011

Posted by admin in Mid Term Picks on May 11th, 2011 | no responses

The following stocks have been suggested for mid term investment by Broking house Anand Rathi Financial Services.

PTC India Ltd

Recommendation: Buy
Market Price: Rs 89
Target Price: Rs 130
Power trading major PTC has a market share of 46% with a diversified portfolio. The business mix consists of short-term trades, long-term contracts and cross-border trades. Recently the change in businessmix has helped improve its topline and margins.

GIC Housing Finance Ltd

Recommendation: Buy
Market Price: Rs 113
Target Price: Rs 135
GIC Housing has recorded a robust business growth. The firm plans to tap tier II and III cities. The company has a CAR of 18%. GIC’s focus on salaried class makes it less vulnerable to NPAs and helps it improve asset quality with net NPAs at 0.7% currently.

Engineers India Ltd

Recommendation: Buy
Market Price: Rs 282
Target Price: Rs 350
Engineers India has a current order book of over Rs 9000 crore. It is exploring opportunities in other areas to diversify like infrastructure, waste water management, nuclear power, and city gas distribution. The biggest advantage of EIL is zero debt in its book.

Piramal Glass Ltd

Recommendation: Buy
Market Price: Rs 129
Target Price: Rs 146
Piramal Glass has recorded a spectular growth in bottomline and almost a 10% growth in FY11. The growth will remain intact in the next year with better product mix. Its cash flow has turned positive, mainly due to improved operations globally.

Vardhman Textiles Ltd

Recommendation: Buy
Market Price: Rs 261
Target Price: Rs 329
The company is diversified into segments like yarn contributing 47%, followed by fabric with 22%, sewing thread with 11%, steel with 10%, power plant with 2% and fibre with 8% to revenue. VTL entered into a JV with Nisshinbo Textile to manufacture garments.