Karvy Stock Broking has maintained a buy rating on Everest Kanto Cylinder with a target of Rs 440 in its March 27, 2008 research report."The total deal size of proposed acquisition of US based CP Industries stands at USD 64 million and the deal is expected to be closed by April 2008 subject to court and other regulatory approvals. CP Industries is the market leader with approx. 43% market share globally.CP Industries have one manufacturing facility which is based in US and a total workforce of 118 employees".
"At the CMP of Rs 282, the stock trades at 18.1x and 11.4x their FY09E and FY10E earnings respectively. We maintain our BUY rating on the stock with the price target of Rs 440" says Karvy's research report.
JP Asscociate an outperformer, tgt Rs 325 : P Lilladher
CMP : Rs240
Prabhudas Lilladher has maintained outperformer rating on Jaiprakash Associate with target price of Rs 325 implying upside potentail of 40% in its March 26, 2008 research report. "We believe that value unlocking potential with regards to JP Power Ventures awarding land to Jaypee Infratech and potential value from the Ganga-Ballia Expressway would act as triggers to Jaiprakash Associates. Hence we rate the stock an Outperformer with a SOTP target price of Rs325/share. Based on discounted equity cash flows, we have valued Jaypee Infratech at Rs232bn; however, given the long gestation nature of the project and being a little conservative we have assigned 30% discount to the NAV value," says Prabhudas Lilladher report.
