Emkay Global Financial Services has come out with its report on various stocks.
Reliance Power: Solidity, positive triggers and progress made is being ignored with valuations implying LT merchant rate of Rs 1.3/unit, very safe. We foresee RPL as the most sustainable private utility; upgrade to buy with revised DCF based price target of Rs155/Share (Rs153/Share earlier).
Jubilant FoodWorks: We continue to maintain our positive bias on the robust business model of the company in the strong growth potential of QSR segment in India. Further, we expect JFL to continue its robust earnings growth momentum for next 5-7 years - leveraging the untapped market potential of QSR in the domestic markets. Hence, we maintain our ACCUMULATE rating on the stock with a revised target price of Rs 900/share (from Rs 725/share).
Tata Steel: At the CMP of Rs 476, the stock is trading at 6x its FY13EPS and 4.7x FY13 EV/ EBITDA. Despite modifying our earnings estimates more reasonable, we feel the stock has potential to give positive surprises going forward. We change our valuation base to FY13 and continue to value the domestic operation at 6.5x EV/ EBITDA and overseas subsidiaries at 4x EV/ EBITDA. Maintain our target price of Rs 670/ share. Upgrade the stock to Buy.
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