Diwali Dhamaka: Emkay handpicks 10 stocks for investment

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Diwali Dhamaka: Emkay handpicks 10 stocks for investment

On this auspicious occasion of Dhanteras, Emkay Global Financial Services has come out with its report on 10 stocks for investment.

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RELATED NEWS Buy Hindustan Media; target of Rs 180: PINC Research Hold Torrent Pharma; target of Rs 618: Emkay Hold Hero Motocorp; target Rs 2200: KRChoksey ALSO READ See previous views by Emkay Global Financial Services See what other Experts & Brokerages are saying about ICICI Bank See messages about ICICI Bank

Emkay Global Financial Services has come out with its report on various stocks.

ICICI Bank : Valuations at 1.8x/1.6x FY12E/FY13E standalone ABV does not look unreasonable with improving operating matrix. Maintain ACCUMULATE rating with TP of Rs1200.

Jubilant FoodWorks : Remain positive on growth prospects of QSR segment in India and Dominos business model in particular. JFL should witness robust earnings growth for next 5 years, backed by strong category growth at +20% (higher then personal care products). We have ACCUMULATE rating with price target of Rs900/Share.

Kajaria Ceramics : At current price, the stock trades at 8.2x FY13 EPS, EV / EBITDA of 4.5x and P/BV of 2.3x. With higher asset turnover, RoE are expected to improve from 20.4% in FY10 to 31.7% by FY 13E.

Mahindra & Mahindra : We value standalone business at Rs 725 (8x FY13 EV/EBITDA). We value listed subsidiaries and Tech Mahindra at Rs 160 and MVML at Rs 45 (7.5x FY13 EV/EBITDA). Strong potential for higher value from MVML exists as product ramp up happens and earnings visibility improves. Also we believe there exists positive surprises on tractor business.

Rallis India : At EPS CAGR of 30% (FY10-13E), Rallis offers PEG of 0.7. EBITDA margin expansion of 350 bps over FY10- 13E to improve RoE by 440 bps to 30.5% by FY13E. With a healthy balance sheet (minimal net debt / equity of 0.2) in FY11, Rallis offers attractive investment opportunity. The company also has 'hidden assets' like excess land bank and a minority stake in Advinus, one of the finest pharma research organizations in India.

For complete list of Diwali Picks, Click on the attachment

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To read the full report click on the attachment