Check out top 16 stock picks for month of April: PINC
PINC Research has come out with its report on Top 16 picks.
April 16, 2011 / 16:32 IST
PINC Research has come out with its report on Top 16 picks.
ASHOK LEYLAND: Our earnings estimates for FY11 and FY12 are Rs4.3 and Rs5.5 respectively. Our FY12 earnings estimate is 2.8% lower than consensus estimate of Rs5.6. We have a 'BUY' recommendation on the stock with target price of Rs76, which discounts FY12E earnings by 14x. BAJAJ AUTO: Our FY11 and FY12 earnings estimates are Rs88.8 and Rs103.1 respectively. We have a 'BUY' recommendation on the stock with a target price of Rs1,649, discounting FY12E earnings at 16x. Our FY12 earnings estimate is 2.4% higher than consensus estimate of Rs105.6. GODAWARI POWER: Our earnings estimates are below consensus estimates mainly because we have not included Ardent Steel in our estimates. Buy the stock with a target of Rs 272. HCL TECH: Our revenue estimates vary from Consensus by -2% for FY13. Our EBITDA margin forecast for FY12 and FY13 are ~50bps higher than consensus. Our FY13 EPS estimate is in line with consensus. Buy the stock with a target of Rs 615.INDRAPRASTHA GAS: The correct measure to evaluate operating performance for the CGD business is at EBITDA level. Our FY12 EBITDA estimate is in line with consensus; however, our net profit estimate is 4.3% lower than consensus owing to higher depreciation and interest charges. Buy the stock with a target of Rs 370. IRB INFRA: Our FY11E and FY12E earnings estimates are at Rs14.9 and Rs16.4, which are 3.1% higher and in line for FY12 consensus estimates. We expect top-line growth of 47.6% at Rs 25.2bn for FY11 and 40% at Rs35.2bn for FY12 vs. consensus estimate of 53.2% at Rs26.1bn and 49% at Rs38.8bn. We believe the recent stock price correction provides a good entry point for long-term investors with upside potential of 27% to our SOTP-based target price of Rs269 vs. consensus target of Rs275. JAGRAN PRAKASHAN (JPL): Our revenue estimates vary from consensus by ~7% in FY12. Our net margin of 19% and EPS estimate of Rs8.2 for FY12 is in line with consensus. Buy the stock with a target of Rs 165. JYOTHY LABS: Our estimates are among the highest on the street, led by expectation of superior margins from Ujala Supreme and Maxo. We assign P/E of 18x on core EPS FY12 (Rs14/share - excluding other income from QIP funds) and add Rs28/share QIP cash to derive at TP of Rs281. For more picks, Click on next page_PAGEBREAK_ LUPIN: Our FY2012 estimates are higher than consensus. We expect net sales and earnings to log CAGR of 20.6% and 26.0% to Rs 68,956mn and Rs24.3 over FY2010-12 respectively. We value the company at 22x (in line with the big players in the sector) FY12 earnings yielding a TP of Rs537. MAHINDRA & MAHINDRA: We expect EPS of Rs44.1 and Rs48.0 in FY11 and FY12 respectively. Our FY12 earnings estimate is 3.8% lower than consensus estimate of Rs49.9. We value M&M using SOTP at Rs920, discounting the standalone business at 15x FY12E earnings. NESTLE: Our estimates and target price are among the lowest on the street, underpinned by pressure on EBITDA margin and argument of narrowing down the Nestle's P/E premium to 25%. We assign P/E of 30x on next 12-months earnings to derive TP of Rs3,208. NIIT TECH: Our top-line estimates vary from consensus by ~2.4%, underpinned by stronger volumes and modest uptick in pricing for FY12. Our EBITDA margin estimate for FY12 is 22.1% higher than consensus estimate of 20.3%. Our FY12 EPS estimate is 12.7% higher than consensus. PHOENIX MILLS: Our EPS estimates for FY11 and FY12 are Rs8.2 and Rs14.3 respectively. Our FY12 earnings estimate is 21.1% higher than consensus estimate of Rs11.8. We have a 'BUY' recommendation on the stock with a target price of Rs240, which discounts one year forward NAV by 20%. SINTEX INDUSTRIES: Our earnings estimates (EPS) for FY11 and FY12 are Rs15.5 and Rs18.9 respectively. Our FY12 earnings estimate is 2% lower than consensus estimate of Rs18.9. We have a 'BUY' recommendation on the stock with a target price of Rs220, which discounts FY12E earnings by 12x. TATA STEEL: Our consolidated estimates are lower than street estimates. We value Tata Steel using SOTP methodology at Rs817.USHA MARTIN: Our earnings estimates are in line with the consensus estimates. Buy the stock with a target of Rs 82.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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