Mid Term Stock Picks to Buy - July 23

Posted by admin in Alerts, Mid Term Picks on Jul 22nd, 2010 | no responses

Here are a few medium term stock investment options recommended by Broking house Angel Broking for mid-term.

McNally Bharat Engineering Company Ltd.

RECOMMENDATION: BUY
Market Price: Rs 299
Target Price: Rs 486
The emerging opportunities for the company are expected to be around Rs 51,600 crore over FY10-15E. Current order book stands at Rs 4,250 crore, 2.1x FY10E consolidated revenue. Over FY10-12E, the company may register 27% and 34% CAGR in sales and profit, respectively. It’s attractively valued at 8.6xFY2012E earnings.

Electrosteel Castings Ltd

RECOMMENDATION: BUY
Market Price: Rs 48
Target Price: Rs 72
ECL WILL set up a 2.2 million tonne steel plant by FY2012E through its subsidiary EIL. ECL’s backward integration initiatives may expand OPM by 330 bp over FY10-12E. ECL is awaiting environmental clearance for its iron ore mine, to lower costs. Listing of EIL could unlock value for ECL.

JK Tyre & Industries Ltd

RECOMMENDATION: BUY
Market Price: Rs 168
Target Price: Rs 232
Given the shortage of radial tyres in the trucks & buses segment, JK Tyres will utilise its enhanced capacity at higher realisations, driving strong earnings growth and improving RoEs. Further, the stock is available at attractive valuations at 4.3x and 3.5x of its FY11E and FY12E earnings.

Jagran Prakashan Ltd

RECOMMENDATION: BUY
Market Price: Rs 123
Target Price: Rs 160
Advertising revenues will be steady due to its presence in the Hindi market, rising colour ad-inventory and ad-rate hikes. Its acquisition of Mid-Day may be earnings-accretive. With Blackstone’s investment of Rs 225 crore, Jagran is well-poised to benefit from a steady growth in print media.

United Phosphorus Ltd

RECOMMENDATION: BUY
Market Price: Rs 184
Target Price: Rs 228
United Phosphorus ranks among the top 5 generic agrichemical manufacturers in the world. As innovators control $13 billion of total off-patent market worth $29 b, there is opportunity for the top players to increase their market share. At 11x FY2012 EPS, the stock is attractively valued.