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RELATED NEWS Buy Oriental Bank; target of Rs 466: Way2Wealth Buy HCL Tech; target of Rs 578: Angel Broking Buy Rallis India; target of Rs 204: Unicon Investment ALSO READ See previous views by Sharekhan See what other Experts & Brokerages are saying about HUL See messages about HUL

Sharekhan has come with its report on various stocks.

ITC : We will review our estimates for FY2012 and FY2013 after our interaction with the management of the company and shall come out with a detailed note on the results. We maintain our Buy recommendation on the stock with a price target of Rs 223. At the current market price the stock trades at 26.2x and 22.2x its FY2012E and FY2013E earnings respectively.

Sun Pharma : We expect Sun's strong domestic business, its niche US market (controlled release substances, hormones etc) and the improving visibility of its patent pipeline to drive a steady growth in the long term. With a strong cash balance, Sun is well positioned to capitalise on the growth opportunities. We shall come out with a detailed note post attending the conference call. We maintain our Buy recommendation on the stock with a price target of Rs534. At the current market price, the stock trades at 24.2x FY2012E earnings and 21.1x FY2013E earnings.

Punjab National Bank (PNB): PNB delivered a superior performance in Q1FY2012 led by healthy core performance. The margins remained steady despite pressures while fee income showed strong growth. In view of slower credit volumes, likely compression in margins and higher credit cost we have slightly trimmed our FY2012 and FY2013 estimates. We expect PNB's earnings to grow at a CAGR of 19% over FY2011-13, leading to a return on equity (RoE) of around 22%. We maintain our Buy rating with a price target of Rs 1410.

Corporation Bank : Corporation Bank's Q1FY2012 numbers were qualitatively weak as tax write back and lower provisions aided growth in profits. The bank's margins and CASA ratio have slipped to much lower levels compared to its peer banks. We have reduced our estimates for FY2012 and FY2013 by 7% and 3% respectively. We have also revised our target price downwards to Rs690 (1.05x FY2012E book value [BV]). Currently the stock is trading at 0.8x FY2013E BV. We maintain our Buy recommendation on the stock.

Orient Paper and Industries : Due to the supply discipline mechanism followed by the manufacturers in the southern region, the company is benefited in terms of a strong growth in the realisation but going ahead we believe cement prices would come under pressure with a likely increase in the supply. However, the company's efficient cost structure gives it an advantage over the other players. Further, the company is in the process of introducing a new range of products in the electrical division which could lead to a strong revenue growth in the electrical division. Further, in addition to a strong balance sheet and attractive valuation, the demerger of the cement division will act as a re-rating trigger for the stock. Hence, we maintain our Buy recommendation on the stock with a price target of Rs70. At the current market price the stock trades at a PE of 5.8x and EV/ EBIDTA of 3.8x, discounting its FY2012 earnings estimates.

Glenmark Pharma : We are upgrading our earnings estimates for FY2012 and FY2013 mainly to incorporate the higher than expected revenue growth particularly from the geographies like the USA, India and Latin America. We believe new product launches and ability to maintain the market share of the existing products will help sustain the momentum in the revenue growth. The revised EPS estimates for FY2012 and FY2013 now stand at Rs24.1 and Rs22.6 respectively. Given the expectation of a healthy performance by the core business and a favourable risk-reward ratio, we maintain our Buy recommendation on the stock with a revised price target of Rs426 (15x FY2012E core earnings for the base business and Rs64 for R&D). At the current market price, the stock trades at 13.8x FY2012E earnings and 14.7x FY2013E earnings.

Hindustan Unilever : It was the seventh consecutive quarter of a volume led growth for HUL with all the segments performing well during the quarter. Though the input cost pressure is likely to sustain for the next one to two quarters, the company's ability to maintain the double-digit top line growth (with a decent sales volume) gives us hope of a decent bottom line growth in FY2012. Hence we upgrade our recommendation on the stock from Reduce to Hold. However, we will revise our price target after fine-tuning our estimates after tomorrow's conference call. At the current market price the stock trades at 30.1x and 26.2x its FY2012E and FY2013E earnings.

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