Radico Khaitan: Target price Rs 165
IndiaNivest, which has a ‘buy’ rating on the stock, expects the stock to rally to Rs 165 in the next 12 months. Radico Khaitan’s Q1 2014-15 net profit was down by 26% compared to the corresponding period of last year. However, the management’s premiumisation drive is yielding results and its core brands, such as Magic Moments and Morpheus, are reaching new highs.
The recent fall in prices has also brought down its valuations to reasonable levels. Radico Khaitan has reportedly been in talks with global liquor majors to sell a small stake of its IMFL business and, any announcement on that front, can be a major trigger for the stock.
SKF India: Target price Rs 1324
ICICI Direct initiates a ‘buy’ recommendation on the stock with a target price of Rs 1324. A healthy balance sheet, robust cash flow, strong parentage and product profile, strong distribution network and the recovery in the end-user industry should benefit SKF India.
India Cements Ltd: Target price Rs 165
Nirmal Bang retains a ‘buy’ rating on the stock with a target price of Rs 165. The company’s plans to dissociate itself from Chennai Super Kings and turn it into a wholly-owned subsidiary in an attempt to monetise this asset to lower its debt burden bodes well.
Mangalam Cements Ltd: Target price Rs. 337
Angel Broking has initiated a ‘buy’ recommendation on the stock with a target price of Rs 337. At the current market price, the stock is trading at trailing EV/tonne of $49 (on its 3.25mtpa installed capacity), which is at a large discount compared to its mid-cap peers.
Can Fin Homes: Target price Rs. 550
AnandRathi has placed a target of Rs 550 on the stock. Can Fin Homes, which is also an associate of Canara Bank, has grown at a CAGR of 39 per cent over FY11-14, much faster than 5.5 per cent in FY08-11. Its business model has gradually evolved with higher service levels and greater penetration.
On consistent growth, improved return ratios and attractive valuations, we feel it’s an attractive long-term stock to buy. At our target price of Rs 550, the stock would trade at PBV of 2.1x FY15e and 1.7x FY16e.
Bajaj Corp Ltd: Target price Rs. 330
AnandRathi has placed a target of Rs 330 on the stock. Owing to aggressive advertising, launch of new SKUs and distribution expansion, the company has been able to gain market share from 38.4 per cent in FY08 to 57.9 per cent in FY14.
The company has indicated that it will be able to expand market share further to 67-68% over the next three years before any stagnation. The brokerage firm values the stock at a target price of Rs 330 and PE of 21x FY16e earnings.
Tata Global Beverages: Target price Rs. 210
Religare Securities Ltd has placed a target of Rs 210 on the stock. Tata Global Beverages Ltd. (TGBL) has a portfolio of brands in tea, coffee and water across 40 countries. It is focusing on expanding the range and strengthening the presence of its flagship brands i.e. Tetley, Tata Tea and Eight O’clock coffee. The joint ventures with PepsiCo and Starbucks open up potential markets.
Crompton Greaves: Target price Rs. 245
Religare Securities Limited has placed a target of Rs 245. Crompton Greaves, with its plans for demerging and listing its consumer products business, will do well. It is doing well in its engines supply business.
Suven Lifesciences: Target price Rs 240
Bonanza Institutional Equities has placed a target of Rs 240 on the stock. Sustained base enhancement delivering robust revenues and expanding margins mainly on account of royalty supplies from Taro continuing till FY28 and 3 intermediate supplies to commence from FY16E onwards. Target Price: 240. Time frame: 6 months.
Marico Ltd: Target price Rs 367
Bonanza Institutional Equities has placed a target of Rs 367 on the stock. Marico is seeing high demand and is headed for a faster growth as the GDP improves. Parachute hair oil will gain from conversion of loose oil to branded hair oil while softening of copra price will help Marico to gain further market share and improve margins. Target price: Rs 367. Time-frame: 1 year