Diwali Dhamaka: Emkay handpicks 10 stocks for investment

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

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