CLSA Emerging Markets has reiterated a buy recommendation on ACC at Rs 154 with a price target of Rs 190. The company is expected to benefit from the on-going consolidation in the sector. Moreover, the internal cost reduction initiatives will accentuate the gains. The stock has already appreciated by 20 per cent in the last one month. The earnings per share is estimated from Rs 3.34 to grow to Rs 9.8 in the current fiscal.
Salomon Smith Barney has reiterated an outperform recommendation on Grasim at Rs 269. However, it has revised the risk rating to high given the uncertainties on future steps after the acquisition of 10 per cent stake in Larsen & Toubro(L&T) by Grasim.
It has revised downward the earnings forecast by FY02 and FY03 by 12 per cent and 9 per cent respectively, to factor in lower other income and higher interest costs in future. Consequently, the price target has also been downgraded to Rs 350 as Rs 450 earlier.
TAIB Securities has maintained a buy recommendation on Britannia Industries at Rs 573. Britannia's valuations have reached their nadir in the recent months and all the negative news seemed to be already factored in the share price. It is currently trading at price-earnings ratio of 20x and EV-sales of just 1.1x its estimated FY02 earnings.
Enam Securities has recommended a long-term buy on HDFC Bank at Rs 226. It is one of the most efficient and well managed bank in the country with a sharp focus on growth. The assets are estimated to grow at a CAGR of 30 per cent for next two years.
Moreover, despite the ADR dilution, return on equity (ROE) is expected to remain well over 20 per cent in future. The earning per share is estimated to grow from Rs 8.6 in FY01 to Rs 11.3 and Rs 15 in FY02 and FY03 respectively.
