18 October, 2008

Container Corporation of India

Karvy Stock Broking has maintained its buy rating on Container Corporation of India with a target of Rs 956 in its October 17, 2008 research report. "Container Corporation of India (Concor) reported revenue growth of 10.3% YoY (QoQ increase of 9.8%) to Rs 9 billion. Overall, net profit increased by 28.5% to Rs 2.23 billion translating into EPS of Rs 17.2 as against expectation of Rs 16.1."

"For FY09, we expect the revenue to increase by 15.2% to Rs 38.48 billion and net profit to grow by 16.4% to Rs 8.82 billion. Overall, we expect the revenue growth of 16.9% CAGR to Rs 45.6 billion in FY10 and net profit to increase at a CAGR of 17% Rs 10.36 billion in FY10. At current levels of Rs 712, the stock is trading at 10.5x FY09 and 9x FY10 earnings and EV/EBIDTA it is trading at 6.7xFY09 and 5.3xFY10. We are maintaining our valuation at 12XFY10 earning with target price of Rs 956, Buy," says Karvy Stock Broking's research report.

Dr Reddys Laboratories

Karvy Stock Broking has maintained its buy rating on Dr Reddys Laboratories with a target of Rs 610 in its October 17, 2008 research report. "Net revenues for the quarter are expected to grow by 20.8 % to Rs 15.3 billion. Profits are expected to be lower by 35 % to Rs 1572 million. The stock is currently quoting at attractive valuations of 11.7x FY 2009E(EPS Rs 36.1) and 9.6 x FY 2010E (EPS Rs 43.6). Better traction in CPS and API business as well as outsourcing products from Indian facilities would lead to improved profitability of German operations. On account of compression in valuations we downgrade our multiple to 14x and price target to Rs 610. We maintain our BUY rating on the stock," says Karvy Stock Broking's research report.

Bank Of India

Karvy Stock Broking has recommended a buy rating on Bank Of India with a target of Rs 386 in its October 17, 2008 research report. "In 2QFY09, we expect that the bank would report around 30% (Y/Y) growth in global business on the back of 29% growth in deposits and 32% growth in advances. The bank's net interest income is expected to grow by 22% (Y/Y) to Rs 12 billion. We estimate 49% growth in bottomline to Rs 6.07 billion. We rate the stock as a BUY with a price target of Rs 386 at 1.68x adjusted book value FY2010," says Karvy Stock Broking's research report.