RESEARCH CALLS: Patel Engineering

Finquest recommends Patel Engineering at Rs 282 with a target price of Rs 400. The company has a healthy order book and a foothold in niche areas.

It is well positioned to deliver in the long-term. It has vast experience in execution of projects in hydro power, irrigation and tunneling segments.

The company has a strong order book of Rs 40bn and is also prequalified for projects worth Rs 59bn. It is planning to venture into hydro power generation business as well and bid for mid-size projects in the range of 100 MW to 500 MW.The stock trades at 16x FY2007E and 11.7x FY2008E earnings.

Asian Hotels

IDBI capital recommends Asian Hotels at Rs 540. The company operates a chain of deluxe category hotels under the brand Hyatt Regency Hotels, with presence in three metros i.e., Delhi, Kolkata, and Mumbai.

It has a technical tie up with the Hyatt International, the agreement was signed for 15 years in 1994. Due to its presence in metros the company has an added advantage of increasing its revenues from F&B segment.

For the full year FY06, revenues at Rs 3,299.4 mn are 27.4 per cent higher and PAT at Rs 567 is 122.4 per cent higher than the previous year. The current market price discounts the FY06 EPS of 25 by 22x.

Suzlon Energy

Macquarie Research recommends Suzlon Energy""the world's fifth-largest wind turbine manufacturer""with a target price of Rs 1,204.

The company is expected to see a 45 per cent sales CAGR over the next three years, on strong orders,"globalisation", and the vibrancy of the wind market.

It is expected to continue to achieve higher margins than its peers.The company's performance has been outstanding, with FY04-06 EBITDA growth of ~150 per cent per year and PAT growth of ~160 per cent per year, while wind generation installed capacity is growing at 100 per cent pa.

It has outperformed the global wind industry's two-year average growth of 23 per cent and the Indian wind industry's 36 per cent growth.