Buy M&M, L&T, Tata Chemicals, PTC India: Sharekhan

Sharekhan has come out with its report on various stocks.

PTC India: We remain positive on the derisked business model of PTC India and continue to feel that the company would remain a niche play on the power sector growth story. We also expect that the overall power traded volumes will be significantly boosted by the long-term PPAs in the next two- three years when the undersigned power projects would start commercial operation. At the current market price, the stock is trading at 1x FY2012E book value which looks very attractive considering its growth trajectory. We remain positive on the stock and maintain our Buy rating with a revised sum-of-the-parts based price target of Rs115.

Tata Chemicals: For FY2012 we consolidate estimated earnings to factor in the input cost pressure and also lower trading volume in the fertiliser segment. TCL is expected to show a strong performance on the back of a relatively healthy demand for soda ash and sodium bicarbonate in India compared to the rest of the world. We value TCL at 9x FY2013E earnings per share (EPS) and investment value of Rs41 per share. We maintain our Buy recommendation on the stock with a price target of Rs400.
 
Larsen & Toubro: The company reported robust results for the quarter, the achievement in the order inflow guidance would be highly subjective to uptick in infrastructure development activities in the country and the Middle East region. Nonetheless, maintenance of the robust growth guidance for the year reiterates the company

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