Rain Calcining: Planning US buys

ANALYSTS' CORNER

Networth Stock Broking has given a 'buy' call on Rain Calcining with a 12 month target price of Rs 63. At Rs 43 , the stock is trading at P/E multiple of 4.7 and 6.2 times its FY07 and FY08 earnings.

Rain Calcining (RCL), one of the leading CPC manufacturers based in Vishakhapatnam, is undergoing capacity expansion to double its capacity.

Demand outlook for the user industries of CPC like aluminium, steel and titanium dioxide is expected to be robust, considering the expansions planned by these industries globally and domestically.

The company has entered into a joint venture with a leading Kuwait CPC manufacturer and is planning acquisitions in US.

The forthcoming year is expected to gain benefits of economies of scale backed by improving realisations. Huge capital expenditure has been allocated for doubling the capacity to 6,0000MT.

i-flex: Banking on Oracle brand

Pranav Securities has recommended a 'buy' on declines on I-flex Solutions with a 3 month target price of Rs1100 and a 12 month target price of Rs 1250. At Rs 1056, the stock trades at 26 times the FY07 earnings and 19 times the FY08 earnings.

The company provides comprehensive IT solutions to financial services industry worldwide.

The i-flex portfolio includes Flexicube, a complete banking product suite for retail, consumer, corporate, investment and internet banking, and asset management and investor servicing.

The acquisition by Oracle has enhanced the visibility and brand value of its products. The new market strategy with Oracle shall benefit the company.

BAJAJ AUTO

Refco Global Research has given a 'buy' on Bajaj Auto with a target price of Rs 3,006 based on sum of parts valuation. Sum of parts value includes Rs 328 per share towards the value of the insurance JV ventures in which Bajaj holds a 74 per cent stake.

Bajaj Auto is the second largest two wheeler manufacturer in India. With the opening of the insurance sector, the company has entered into joint venture agreements with Allianz AG, Germany.

Given the strong earnings growth momentum ahead their core business is valued at 17 times FY08 core earnings.

Volumes growth of 28 per cent and 23 per cent is expected in FY07 and FY08 respectively through BAL's new products in bikes like Sonic , pulsar sports, unnamed bike and non-gear scooters - 'Blade' and 'Krystal'.