NUCLEUS SOFTWARE EXPORTS
Edelweiss Securities: “Given Nucleus’ forte in banking and financial services, high-pedigree management, strong clientele and excellent return ratios, prospects appear bright. However, the stock appears fairly priced at current levels and further upsides to our estimates are possible as and when it bags new orders.”
ITC
IDBI Capital: “ITC has successfully increased market share in packaged foods, retailing, and other FMCG products. Over the past three years its revenue grew 24% CAGR, driven by non-cigarette business. This is an opportunity for investors to enter the stock. Our oneyear target for ITC is Rs 176.”
ASHOK LEYLAND
Prabhudas Lilladher: “The company intends to raise Rs 1,100 crore as ECBs to fund its capex programme at Ennore and Uttaranchal. The company may not be able to escape the cyclical downturn now seen in commercial vehicles and we expect its sales volumes to decelerate 3.8% in 2007-8.”
MCNALLY BHARAT ENGG
Edelweiss Securities: “The company expects to get Rs 2,000 crore worth of orders in a month. With that, its order book would rise to Rs 3,000 crore, a growth of 200% since 31 March. We expect revenues to grow 43% and PAT 93% between 2006-7 and 2008-9E. We maintain our positive stance with a long-term perspective.”
TORRENT PHARMA
Man Financial: “One of the fastest-growing companies, it plans to launch about 60 products over the next three years. We estimate sales to grow at 17% and earnings 31% CAGR between 2006-7 and 2008-9E. We expect the stock to outperform the BSE Healthcare Index and broader indices. Our target price is Rs 286.”
JET AIRWAYS
ICICI Securities: “We expect Jet’s US launch to have lower fuel cost than estimated earlier, leading to a significant revision in earnings. We estimate US routes to cash break-even by 2008-9. Together with Air Sahara (now JetLite), we value Jet Airways at Rs 998 representing 26% upside to the current price.”
