By Varinder Bansal, CNBC-TV18

Three stocks to look at are Gitanjali Gems, IVRCL Infra and Everest Kanto.

JPMorgan has initiated coverage with overweight on Gitanjali Gems. For March 2009, JP Morgan has set a  price target of Rs 400 on Gitanjali Gems. It believes that Gitanjali Gems has an improved balance sheet profile post-GDR offering. It’s Hyderabad SEZ would be moving into fully operational phase in three months.

Motilal Oswal has maintained its buy on IVRCL Infra. MOST sees the stock’s SOTP (stock option transfer program) at Rs 509. It believes that IVRCL has a robust order book (up 48.1% YoY) to drive earnings growth. It is establishing a strong position in power T&D and buildings. After adjusting the stock for BOT (build operate and transfer) and real estate, it is trading at 13.2 times FY09 estimates and 9.5 times FY10 estimates.

Citigroup feels that Everest Kanto is the best play on the city gas. Their US acquisition will provide upside, it feels. Hence, it has maintained a buy on the stock and set a target price of Rs 404.