Emkay Global reveals 8 stocks for investment

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

NTPC: Though PAF structurally coming down, but do not see it lower than 88% (expect 4Q PAF to be significantly higher at around 94%). Core ROE still remain at ~25%. We also highlight that none of the SEBs have delayed payments to NTPC beyond 60days and delays up to 60days is a positive for NTPC (earns late payment surcharge). Maintain Buy on reasonable valuations at 1.8x (prices in negatives - fuel, SEB delays etc) with revised price target of Rs199/Share. Further, scenario of interest rates coming down is a positive for the stock as regulated utilities are quasi bonds. Orient Paper & Industries: Led by better than expected performance for cement division, we upgrade our earnings estimate for FY12 by 8.3% ( EPS of Rs10.1) and 1.6% for FY13 (EPS of Rs11.5). However the new pricing mechanism adopted by Coal India (UHV based to GCV based) will result in higher energy prices for paper division in FY13 (as CPP for this division sources coal from Coal India) and therefore caps the upgrade in FY13 earnings to 1.6%. The impact of coal prices is not substantial for the cement division in FY13 as it sources coal from Singareni mines where the estimated hike in coal prices could be around 6% as compared to 28% in the case for Coal India

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