 "Broker alert: Buy Bajaj Auto, Jindal Steel & Power, Idea")
Firstpost tries to make life simpler for you by giving you a snapshot of the stocks that brokers are tracking. Here is the list.
Deutsche Bank maintains a ‘buy’ rating on Bajaj Auto with a price target of Rs1,603 per share. The stock is currently trading at Rs 1,556 per share. While earnings per share (EPS) has been revised upwards by six percent owing to strong volume growth, revenues are expected to grow at a compounded annual growth rate (CAGR) of 16 percent during FY11-14 owing to robust export growth and continued consumer upgrades to premium bikes.
Macquarie Research maintains its ‘underperform’ recommendation on Maruti with a price target of Rs 1,020 per share vis-a-vis its current market price of Rs1,088, reflecting a downside of 6 percent. The Rs 3.14 per litre hike in retail petrol prices is expected to have a drastic impact on car sales, primarily Maruti’s, as petrol-engine cars constitute more than 75 percent of total sales volumes.
[caption id=“attachment_89700” align=“alignleft” width=“380” caption=“Deutsche maintains a buy on Bajaj Auto. Reuters”]
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Citi Securities has initiated a ‘buy’ coverage on Jindal Steel & Power with a price target of Rs 640 per share vis-a-vis its current price of Rs 544 per share, reflecting a growth of 17.6 percent.
According to its annual report analysis, the company incurred its highest ever capex of Rs 8,400 crore for the year ended March 2011. Also, a greater focus on acquisitions of iron ore and coal mines would ensure long term raw material security for the company.
Elara Capital continues to maintain its ‘reduce’ rating on Reliance Industries (RIL), with a price target of Rs 900 per share. Earlier, RIL used to quote at a premium to the Sensex because of the market’s perception of the company’s exploration and production (E&P) potential. However, with the KG-D6 issues and no significant announcement on other E&P blocks, the stock has been a laggard. It is also expected to continue underperforming the market over the next 2-3 quarters. The September-ending quarter is also not expected to spring any surprises and could be a repeat of the first quarter as the E&P output decline and weak petrochem business offsets the stronger gross refining margins in refining, the report said.
Religare is bullish on Idea Cellular with a price target of Rs 110 per share. The stock is currently trading at Rs 97.15 per share. It expects ‘Idea’ to continue to grow ahead of the industry owing to increasing network coverage and market share gains. Also pricing discount given by the company compared with its competitors and higher advertising spend augurs well for the company. In August, Idea Cellular added the largest number of users - 23 lakh - compared with an additional 11.5 lakh users for Bharti Airtel.