February 17, 2012 / 22:50 IST
ICICIdirect.com has come out with its report on few attractive stock picks. The research firm has recommended to buy Bank of India (BOI), Infosys, Graphite India, Pipavav Defence, CESC, Jyoti Structure, NTPC, Bharat Forge and Sintex Industries in its February 17, 2012 research report.
Bank of India (BOI): Is one of the largest public sector banks with business size of Rs 537607 crore as on December 2011. The stock has been under stress from past 2 years due to asset quality concerns. However, the pace of NPA additions is expected to slowdown which may support healthy profitability. The bank is trading at reasonable valuation of 1.3x FY13E ABV (historically during favorable market conditions, traded at 1.5x-1.8x one year forward ABV) with RoA and RoE expected at 0.8% and 17.3%, respectively, by FY13E.Buying Range: Rs 386 - 375
Price target: Rs 445
Stop loss: Rs 357Infosys (INFTEC): Is expected to post revenue/EPS growth of 17.2%/14.3% CAGR for FY11-FY13E period. The company boasts of a healthy client base of 665 active clients with 49 new clients added in Q3FY12. It is the only company which has clients (3) above the 200 million + bracket as of Q3FY12. Currently, the company is trading at one year forward PE of 18.6x. With the background of recovering US economy and most IT bellwethers commentary of exceeding NASSCOM estimate of 11-14% growth in export revenues (US $ terms) for FY13, Infosys could get rerated at its average FY11 one year forward PE multiple of 21-22x.Buying Range: Rs 2900- 2850
Price target: Rs 3190
Stop loss: Rs 2750Graphite India (CAREVE): Global steel demand is expected to grow at 6.0% in CY12. Healthy growth in steel global demand coupled with an increasing contribution of EAF share in total crude steel production is expected to directly benefit the graphite electrode industry. Graphite India (GIL) is currently expanding its consolidated capacity from 78000 tpa (tonnes per annum) to 98000 tpa (scheduled to be completed in Q4FY12) and is well placed to cater to the rising demand. GIL
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