Research Calls

J P Morgan believes that Ashok Leyland is well positioned to take advantage of the boom in the commercial vehicle segment

Digital GlobalSoft

Recommendation: hold at Rs 595

UBS Warburg

Although UBS Warburg continues to remain positive on the long term prospects of Digital GlobalSoft, it believes that the re-alignment of business portfolio (following the HP-Compaq merger) will impact its growth this fiscal. Consequently, the stock has been downgraded from buy to hold at Rs 595. On the back of reduced earnings estimates by 5.6 per cent, the target price has also been brought down to Rs 600 from Rs 700 given earlier.

Ashok Leyland

Recommendation: buy at Rs 93.85

J P Morgan Securities

J P Morgan has maintained a buy recommendation on Ashok Leyland at Rs 93.85. Unlike its peers, Ashok Leyland, the only pure commercial vehicle (CV) player, is better positioned to take advantage of the boom in the segment. The infrastructural development, restructuring in the road transport industry and easy financing solutions are expected to drive the growth in CV segment. Besides, improvement in Ashok Leyland's ROE over three years should be driven by improving asset turnover and a reduction in its interest burden. Based on two-stage dividend discount model, the scrip's fair value works out to Rs 131.

Wipro

Recommendation: Sell at Rs 1,429

CLSA Securities

CLSA Securities has maintained its bearish view on Wipro at Rs 1,429. It estimates Wipro's sum of parts value at Rs 1,029 (28 per cent below the current levels). The scrip has witnessed some upward movement recently which was largely driven by market rumours of large orders, acquisition in the US among others. At 34x FY03 earnings, Wipro is not only discounted much higher than its peers but also one of the most expensive scrip across entire spectrum of Indian stocks. Considering the fact that around 30 per cent of Wipro's revenues are contributed by hardware and consumer-care business, the huge premium over other frontline stocks seems to be unjustified.

ACC

Recommendation: buy at Rs 139

UBS Warburg

UBS Warburg is bullish on Associated Cement Companies (ACC) at Rs 139, with a target price of Rs 172. But it adds a word of caution as the scrip could be in for a slight correction. That's because the stock