Mid Term Stock Picks - September 3, 2010

Posted by admin in Companies, Mid Term Picks on Sep 2nd, 2010 | no responses

Here are some of the stocks recommended for investment with a medium-term investment view by Broking house Broking house Microsec Capital

Coromandel International

Recommendation: Buy
Market Price: Rs 552.65
Target Price: Rs 651
Phosphatic and complex fertilisers manufacturer, Coromandel International will likely benefit the most on introduction of nutrient-based subsidy policy. The company’s FY12 EPS of Rs 46.5 discounts the CMP 11.90 times.

BEML

Recommendation: Buy
Market Price: Rs 1,061
Target Price: Rs 1,275
BEML, with businesses in earth moving equipment, heavy-duty vehicles, railway and defence, is poised to do well in coming quarters. The company’s 2012 EPS of Rs 85 discounts the CMP of RS 1061, 12.50 times. We assign a multiple of 15 and arrive at a target price of Rs 1275.

Uflex

Recommendation: Buy
Market Price: Rs 170
Target Price: Rs 195
Uflex, India’s largest flexible packaging company with raw material conversion cost that is nearly half of global peers, is increasing capacities in markets like Mexico and Egypt. Net Sales and PAT are expected to grow at 13% CAGR and 16%, respectively, over 2009 to 2012.

BHEL

Recommendation: Buy
Market Price: Rs 2,397.70
Target Price: Rs 2,700
BHEL’s order book of Rs 1,50,000 crore is more than 4.5 times FY10 sales. The stock is available at 17.8 times FY12 EPS of Rs 135, which is way below its 5-year average P/E of 33. Investors can accumulate BHEL at lower end of the price band.

GE Shipping

Recommendation: Buy
Market Price: Rs 308
Target Price: Rs 360
GE Shipping with leadership status in the sector, strong fundamentals, value unlocking through listing of its wholly-owned subsidiary and strong ROE makes it cheap at 5.2 times its FY12 EPS of Rs 59. It’s trading over 4% over the past one month.

Source: Economic Times