Market watch, as on November 21, 2007

MONEY TODAY scans dozens of research reports from investment houses every fortnight to present you the six most relevant stock recommendations.

Print Edition: 13 Dec, 2007

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MONEY TODAY scans dozens of research reports from investment houses every fortnight to present you the six most relevant stock recommendations.

BHARAT FORGE

Asit C. Mehta: "During the second quarter of 2007-8, Bharat Forge's exports grew 41.3% to Rs 261.05 crore despite weakness in the US truck industry and rupee appreciation. The company is also focusing on segments such as wind power, oil exploration, hydro power and aviation. Our target price for the stock is Rs 418."

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Recommendation	BUY
Stock Price	Rs 333.45
One-year returns	-11.26%
Profit Margin	16.59%
Q2 PE ratio	109.7

GRASIM INDUSTRIES

First Global: "Grasim Industries' performance in the second quarter of 2007-8 was in line with expectations. We expect domestic cement prices to remain stable, although the benefits will be negated by rising costs. The stock will find it hard to outperform a rising market and we therefore downgrade it to Market Performer."

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Recommendation	BUY
Stock Price	Rs 3640.1
One-year returns	35.88%
Profit Margin	55.67%
Q2 PE ratio	66.78

PVR

Religare: "PVR Cinemas' second quarter results exceeded our expectations with a 42% YoY growth in revenues and 86% increase in net profit. Considering the strong quarterly performance and aggressive expansion plans, we maintain our Buy recommendation with a target price of Rs 277."

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Recommendation	BUY
Stock Price	Rs 197
One-year returns	-17.50%
Profit Margin	83.11%
Q2 PE ratio	72.43

SAIL

IL&FS Investmart: "SAIL's revenues grew 8.4% YoY during the second quarter. During 2008, iron ore contract prices are expected to rise by 35-45% and global demand for steel is expected to be robust. Since SAIL sources its iron ore internally, it would be insulated from the rise in prices. We retain Accumulate rating."

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Recommendation	BUY
Stock Price	Rs 247
One-year returns	187.88%
Profit Margin	14.00%
Q2 PE ratio	59.95

GLENMARK PHARMA

Edelweiss Securities: "Glenmark has increased its net profit guidance for 2007-8 by 23% and for 2008-9 by 30%. We were pleasantly surprised by the exceptionally high net margins and believe the company is performing very strongly on its base business. We have revised our EPS estimates upwards and recommend a Buy."

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Recommendation	BUY
Stock Price	Rs 447.75
One-year returns	64.47%
Profit Margin	167.29%
Q2 PE ratio	170.90

VOLTAS

Prabhudas Lilladher: "We expect significant inflow of orders for Voltas over the next six months from both the Middle East and domestic markets. We expect orders for electro-mechanical work of the Delhi and Mumbai airports to be over Rs 500 crore each. We initiate coverage on Voltas with a target price of Rs 267."

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Recommendation	BUY
Stock Price	Rs 205.7
One-year returns	92.96%
Profit Margin	126.18%
Q2 PE ratio	126.98

All stock prices as on November 21. EPS is not annualised for computing PE ratio. Profit margins are based on half-yearly results for 2007-8. Some financial jargon: YoY = Year on Year; EPS: Earnings per share.