Mid Term Stock Picks - September 1, 2010

Posted by admin in Companies, Mid Term Picks on Aug 31st, 2010 | no responses

Here are some of the stocks recommended for investment with a medium-term investment view by Broking house ICICIdirect.com Research

Opto Circuits

Recommendation: Buy
Market Price: Rs 280
Target Price: Rs 309
The strong performance from the core business with newer product launches along with the strong performance of subsidiaries like Eurocor Gmbh and Criticare will lead to further margin enhancement. We expect the topline to grow at a CAGR of 19.7% FY10-12.

IPCA Laboratories

Recommendation: Buy
Market Price: Rs 287
Target Price: Rs 302
IPCA Laboratories’ formulation exports grew by ~29% while domestic formulations grew by ~16%. The management has guided for ~18-20% revenue guidance for the current fiscal. Revenue and profits may grow at a CAGR of ~18% and ~19%, respectively, through FY10-12.

Jagran Prakashan

Recommendation: Buy
Market Price: Rs 125
Target Price: Rs 144
An improvement in the economic scenario and increase in spending by corporates will sustain the growth momentum, going forward. We expect the company to post an overall growth of about 13.7% and 11.9% for FY11E and FY12E, respectively. The target price is Rs 144.

TCS

Recommendation: Buy
Market Price: Rs 844
Target Price: Rs 960
IT services growth has picked up with a return in discretionary spend. We expect revenues to be broad-based and grow at 21% CAGR over FY10-FY12E. Margins will be under pressure in the near term but will recover in CY12. The target price for the stock is Rs 960.

TTML

Recommendation: Sell
Market Price: Rs 22.4
Target Price: Rs 19
TTML posted disappointing results, excluding the one-time gain from the sale of tower assets. The topline fell 8% q-o-q while the EBITDA margin contracted by ~250 bps. With falling key metrics, revenue growth will remain subdued while increasing network cost will impact the margins further.