UBS Warburg has reiterated a buy recommendation on Ranbaxy Laboratories at Rs 573.5 with a price target of Rs 700. The earnings per share is estimated at Rs 34.36 and Rs 42.77 for the fiscal FY02 and FY03 respectively. The recent developments in the patent infringement suit filed by Glaxo for Cefuroxime patented by Ranbaxy has been favourable.
SSKI Securities has given a underperformer recommendation on BSES Limited at Rs 196. BSES utility business will plateau for the next two years as power business from Dahanu plant reaches saturation.
The scrip looks fully valued at a price to earnings multiple of 7.1x times FY02 estimated earnings. Moreover, the fate of Saphale plant remains uncertain.
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SG Asia Pacific Equity Research has maintained its hold recommendation on Cadbury at Rs 400 with a price target of Rs 460. There is no sign of an uptrend and sales are yet to achieve a higher growth trajectory.
With the intensifying competition, the operating profits in the second half of the current fiscal are expected to grow at 11 per cent only.
Merrill Lynch has reiterated its intermediate-term buy recommendation on SSI Limited at Rs 172. SSI's fourth quarter ended June 2001 results were better than expected with education growing at 54 per cent (y-o-y) as against 33 per cent growth reported by NIIT. With the earning per share of 2.6x its FY02E, SSI is trading at 65 per cent discount to NIIT and is valued at near cash levels.
Kotak Securities has maintained a buy rating on Hughes Software Services at Rs 545 but reduced the 6-month price target to Rs 650 (from Rs 750) and the 12 to 15-months price target to RS 950 (from Rs 1150).
The earning per share estimates are also reduced from Rs 29.8 to Rs 25.8 for the current fiscal, which means a 40.1 per cent growth on the FY01 earnings.