Monday, December 19, 2011

Bulles eye : ET

National Aluminium - Sell
CMP: Rs 50
TARGET: Rs 51


HSBC retains Underweight rating on National Aluminium. The stock continues to be relatively expensive, trading at a 30-40% premium to its global aluminium peers. HSBC feels power costs will remain in focus and improvement in coal supplies isa key near-term catalyst for the stock.

Asian Paints - Sell
CMP: Rs 2,707
TARGET: Rs 52,758



Citigroup downgrades Asian Paints to Sell after about 22% stock price outperformance versus the broad market last year and with downside risks to consensus earnings and near-peak valuations. Risks from potentially higher excise duties are not.

Dish TV - Buy
CMP: Rs 61
TARGET: Rs 82



Credit Suisse initiates an Outperform rating on Dish TV, India's largest direct-to-home (DTH) player providing satellite pay TV service. The DTH industry is at the cusp of moving from the introduction to the growth phase. Hence Credit Suisse values Dish based on discounted cash flow.

Coal India - Sell
CMP: Rs 302



JP Morgan recommends Underweight rating on Coal India as it values the company at 7x FY13E EV/EBITDA to arrive at the target price of Rs 325. Given CIL's earnings visibility over the next 3 years, JP Morgan believes an FY13E multiple is appropriate.

Jet Airways - Sell
CMP: Rs 205
TARGET: Rs 172



Citigroup maintains Sell rating on Jet. Over the past few years, industry growth was at an unsustainable 20% plus, driven mainly by fare cuts. In the current cycle, demand will show 6% CAGR over FY11-13E. Competitive intensity has abated, but business environment is fairly challenging.

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