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PNB, Pfizer going healthy

PNB, Pfizer going healthy

We scan through dozens of research reports to present you the six most relevant stock recommendations.

We scan through dozens of research reports from investment houses every fortnight to present you the six most relevant stock recommendations and a sector analysis.

PUNJAB NATIONAL BANK

Khandwala Research:

“Punjab National Bank is one of the few PSU banks where fee income grew at a healthy rate of about 30% in 2006-7. Gross NPAs came down from 9.1% in March 2004 to 3.4% in March 2007. We expect its asset quality to improve due to increased focus on recoveries. Our target price for PNB is Rs 700.”

EIH

Indsec Securities & Finance:

“EIH has signed a contract to manage the 150-room Trident Hilton in Gurgaon. Its strategy is to remain asset-light and increase room inventory through such management contracts, for which EIH earns management fees. We recommend a buy with a target price of Rs 159.”

ORIENT PAPER & INDUSTRIES

SBICap Securities:

“Orient is expanding its cement and clinker capacity and setting up a coal-based captive power plant. This will add Rs 24.9 crore to its net profit. Given the strong cement prices outlook, we expect EBITDA per tonne to rise further. We initiate coverage on Orient with a 12-month target price of Rs 676.”

PFIZER

Prabhudas Lilladher:

“For the quarter ended 31 August, Pfizer reported a 2% YoY dip in sales—from Rs 179 crore to Rs 176 crore. But net profit grew 19%— from Rs 33.9 crore to Rs 40.4 crore. The newly launched Lyrica is doing well and is likely to be a growth driver. We expect the scrip to outperform over the next year.”

LAKSHMI MACHINE WORKS

Anand Rathi:

“LMW is the undisputed leader in the textile spinning machinery market. Strong top line, stable margins and debt free status are likely to translate into robust earnings growth. We expect the returns ratio to peak by 2007-8. We initiate outperformer rating with the target price of Rs 3,830.”

CADILA HEALTHCARE LTD

Religare Research:

“Cadila has a strong presence in the domestic market and is eyeing foreign acquisitions. It is expected to grow above the industry average over the next two years. Growth would be driven by branded formulations, both from new and existing products. We maintain a buy with a target price of Rs 416.”