COAL INDIA
Reco price: Rs 300
Target price: Rs 322
Coal India is expected to shift to a new pricing mechanism from January 2012. The company will price its non-coking coal on the internationally-accepted gross calorific value. Currently, non-coking coal is priced based on various grades ranging from A to F. The new pricing system is based on the recommendations of the Integrated Energy Policy Committee and the Expert Committee on Road Map for coal sector reforms. The change is pricing mechanism is expected to be revenue-neutral for Coal India. Hence, analysts maintain their estimates. Accumulate
-Angel Broking
BOSCH
Reco price: Rs 6,580
Target price: Rs 8,056
Bosch is the best proxy for rising dieselisation of Indian cars. Its monopolistic-like position in critical diesel engine equipment also gives it strong pricing power. While it's irrational to extrapolate this huge petrol-diesel disparity over a longer period, the inherent economics of a diesel vehicle makes the brokerage structurally positive on dieselisation of the Indian car industry going ahead. Also, based on analysis, one third of the commercial vehicle segment sales is to the aftermarket. This not only makes the business less cyclical, but also more profitable. Given the enviable business model current valuations of 15.1 times calendar year 12 estimated P/E look attractive. Maintain buy
-Antique Stock Broking