Analysts' corner

Jindal Steel & Power, Bajaj Auto

Jindal Steel & Power
Reco price: Rs 521
Target price: Rs 625

The recent correction in the stock offers a good entry point for investors, as the risk-reward seems favourable. Jindal Steel & Power is a strong player in natural resources in India and, along with its multiple overseas forays, offers an attractive growth potential. While its steel business is on a strong footing due to its integrated nature, the power business could see headwinds in the form of declining rates and delayed commissioning of the 2,400 mw Tamnar plant. Upgrade to buy from hold.

—Religare Institutional Research

Bajaj Auto
Reco price: Rs 1,628
Target price: Rs 1,730

Bajaj Auto’s management is confident of maintaining margins in the range of 19-20 per cent. Analysts are impressed by the new Boxer 150cc. Irrespective of weakness in the premium segment, the company should be able to achieve its 20 per cent volume growth guidance, due to new launches and strong growth in exports. The new three-cum-four wheeler is likely to be launched in Q3FY13 and could be the medium-term positive trigger. Maintain buy.

—Edelweiss Securities