Four stocks have been recommended by leading brokerages as being worthy of a buy
If you have a stock query, you can ask at the Stocks Talk Forum!. Some knowledgeable investors may have an answer
| Just Dial |
| CMP (Rs.) 1355 |
| Target Price (Rs.): 2137 |
| Potential Gain (%) : 58 |
| Research By: Nirmal Bang Instl Equities |
| Outlook & Valuation: We had a meeting with Mr. V.S.S. Mani, chief executive officer and managing director of Just Dial (JDL) to understand its execution and rollout of Search Plus service. Post-meet, we reiterate our super bullish view on JDL. Its stock price has declined 17% over the past six months on account of various factors like: 1) Tentative equity dilution by Rs10bn, 2) Prospects of private equity investors liquidating a part of their stake of 35%, 3) Delay in rollout of Search Plus service, etc. We believe none of these concerns are serious enough to impact the business model of JDL. We believe at 35.6x/24.0x FY17E P/E and EV/EBITDA, respectively, JDL – based only on its core business – is undervalued. JDL has tied up with over 300,000 service providers to provide 23 Search Plus services and is aiming to take it to over 1mn, who are expected to make payment to JDL in the coming years. JDL has also connected its search service with voice command, thereby leading to greater convenience and faster transaction execution – from 30 seconds to 2 minutes. JDL’s market-place model is strong enough to compete on pricing with established players like Amazon, Flipkart, Snapdeal, etc, with a guaranteed seven-hour delivery. In many cases, JDL is able to offer prices lower than its competitors with an added advantage of personal touch from the nearby retailer. JDL expects the commercial launch of its Search Plus service by April 2015 with one-time annual advertisement expenditure of Rs1bn. We have retained our estimates and Buy rating on JDL with a target price of Rs2,137 based on 40.0x/56.1x/13.8x FY17E EV/EBITDA, P/E and EV/sales, respectively, up 58% from the current market price. |
| Click here to download research report |
Market Wizards: Interviews With Top Traders Updated |
| Navneet Education Ltd |
| CMP (Rs.): 100 |
| Target Price (Rs.): 133 |
| Potential upside (%): 33 |
| Research By: CD Equisearch |
| Outlook & Valuation: The stock currently trades at 15.7x FY16e earnings and 13.6xFY17e earnings. We recommend a buy on the stock with target of Rs 133 over next 9-12 months based on 18xFY17e EPS of Rs 7.38 (earnings growth of 15% and PEG ratio of 1.2; discount (for looming risks) to historical PEG ratio of 1.6 (weeding out outliers). |
| Click here to download research report |
| KNR Construction |
| CMP (Rs.): 394 |
| Target Price (Rs.): 502 |
| Potential upside (%): 27 |
| Research By: Karvy Broking |
| Outlook & Valuation: We believe that long term fundamentals of KNR are still in place with robust revenue growth (led by a ramp-up in project execution and strong order inflow) and healthy EBITDA margin, which will drive its profitability during FY16-17E. The recent stock price correction (24% in last 15 days) without any change in the fundamentals would enhance investor interest. We upgrade the stock to BUY from HOLD and maintain our SOTP target price of Rs502. |
| Click here to download research report |
Samsung Galaxy S4 now at Rs 17,999+Gift card worth Rs 1000 |
| Somany Ceramics |
| CMP (Rs.) 362 |
| Target Price (Rs.): 426 |
| Potential Gain (%) : 18 |
| Research By: ICICI-Direct |
| Outlook & Valuation: Somany Ceramics (Somany) emerged as the third largest tiles player in the Indian tiles industry. It witnessed 23.3% CAGR in topline in FY10-14 (industry average: 16.6%) through aggressive capacity expansion from 16.7 msm in FY10 to 42.5 msm currently largely through a JV model. Going ahead, we remain positive on Somany’s growth prospects considering the structural shift in the industry post the Morbi development, its aggressive expansion plans and shift towards JV model. Consequently, we expect Somany’s earnings to grow at 44.4% CAGR in FY14-17E without any significant incremental capex resulting in an improvement in return ratios. Hence, we initiate coverage on Somany with a BUY rating with a target price of | 426 (19x FY17 EPS). |
| Click here to download research report |
Leave a Reply