Brics PCG: 'Buy' Indoco, ABB, Alok

Brics PCG recommends to 'Buy'  Indoco Remedies at Rs 287 with a target price of Rs 410.

Already having significant presence in the marketing and distribution of pharmaceutical products and services in the domestic and international markets, the company now identified contract manufacturing services in the US and Europe as a growth avenue and has laid down the requisite infrastructure for the same.

The P/E multiple of  8x on FY07E and 6.3x on FY08E also look extremely attractive along with an expected return on equity of about 22% in FY08 and growth in earnings of 37% till FY08.

Brics PCG recommends to 'Buy'  ABB at Rs 2,883 with a target price of Rs 3,054.

During the first half of the fiscal, the company has improved its sales by 40.3% while net profit rose 73.3%. Operating profit margins expanded by 195 bps to 9.6%.

ABB is expected to maintain its healthy performance in H2CY06 as well. 

Brics PCG also recommends to 'Buy' Alok Industries at Rs 65 with a target price of Rs 100. Alok Industries's plans to add nine exclusive stores 'Homes and Apparels' to its existing two by the end of the current year would draw in significant revenues.

The stock trades at 7.7x and 5.8x on FY07E and FY08E respectively.