Motilal Oswal's Large and Mid Cap Picks


Motilal Oswal has come out with following stock recommendations .

Large cap stocks:

Bharti Airtel - We are upgrading our SOTP-based target price to Rs430 - Rs488/share for India & SA business. We maintain Buy.

BHEL - The quality of earning is set to improve, with EBITDA growth of 36% CAGR over FY10-12 along with superior RoE's of 33% and 54% over FY11 and FY12. We re-iterate Buy with a target price of Rs2,934, based on 20x FY12E earnings.

SBI - SBI would command valuation premium for its size and for being proxy to growth in financial service space in Indian economy. We assume consolidated RoE of 16-18% over FY09-12.

Mid cap stocks:

Anant Raj Industries: We expect revenues to increase at 70% CAGR over FY10-12 and net profit to increase at 35% over FY10-12. Our FY12 NAV for ARIL is Rs210/share.

ING Vysya - ING Vysya Bank is a play on increasing return ratios, backed by improvement in core operating performance and improving balance sheet profile. The stock trades at 11x FY12E EPS of Rs35 and 1.6x FY12E BV of Rs239. Strong growth coupled with improving return ratios can potentially re-rate the stock. We reiterate Buy with a target price of Rs475 (2x FY12E BV)

Tulip Telecom - We expect 31% earnings CAGR over FY10-12E driven by 29% EBITDA CAGR. At CMP of Rs898, the stock trades at a FY12 P/E of 6x and EV/EBITDA of 3x; maintain Buy with a DCF-based target price of Rs. 250.

0 comments:

Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • www.investchips.com never collects any personal information of visitors.