PANACEA BIOTEC
Current price: Rs 197.45,
Fair value: Rs 208
Crisil Equities has assigned a fundamental grade of 3/5 to Panacea Biotec indicating 'good’ fundamentals. Panacea’s position as India’s second largest manufacturer of vaccines and the leading supplier of polio vaccines to UNICEF, the expected increase in demand for pentavalent vaccines and new formulations are expected to drive growth.
However, the performance of new formulations is a key monitorable. Crisil expects Panacea’s EPS to double from Rs 10.2 in FY10 to Rs 21 in FY13. It has used the discounted cash flow method and arrived at a one-year fair value of Rs 208 per share.
— CRISIL Equities
TATA MOTORS
Reco Price: Rs 1,169,
Target Price: Rs 1,150
Tata Motors issued 64.3 million DVR (differential voting rights) shares in FY09 with rights for voting (1/10th) and dividends (5 per cent higher). The DVR shares are currently trading at Rs 768 versus the common share price of Rs 1,156. Religare expects the historical discount of 35 per cent of Tata Motors DVR relative to common shares to narrow, as new shares issued from the recently concluded QIP issue will address the liquidity concern of investors.
The combination of DVR share issuance in the QIP and continual stake sale by promoters over the last one year, would provide the necessary booster shot for the stock. Maintain buy.
— Religare Capital