INFOSYS TECHNOLOGIES
Reco Price: Rs 3,203,
Target Price: Rs 3,500
The budgets are generally expected to be flattish but the outsourcing/offshoring should rise. BFSI and retail are looking strong with the telecom sector still sluggish. Germany and France are opening to outsourcing and demand is better than ever for these countries. As of now, the pricing is expected to be stable. The management does not expect increase in the billing rate for the next two-three quarters. Infosys is on track to hire 50,000 (gross) employees in 2010-11. On a month on month basis, attrition is going down as more freshers join the workforce. The utilisation is expected to go down as lot of freshers have joined in Q3FY11 and expected to further join in Q4FY11. Infosys is currently trading at 21.1 times 2011-12 earnings. Maintain buy
— Pinc Research
ELECTROSTEEL CASTINGS
Current Price: Rs 36.90,
Fair Value: Rs 58
Crisil Equities has assigned a fundamental grade of 4/5 to Kolkata-based Electrosteel Castings, a water infrastructure company manufacturing DI fittings and pipes, and cast iron pipes. The grade takes into account Electrosteel’s leadership (about 60 per cent market share) in the domestic ductile iron (DI) pipe market. Electrosteel’s global presence should partially offset competitive pressure owing to overcapacity in the domestic market. Captive mines allocated to the company will reduce cost volatility and boost profitability. Adjusted PAT is estimated to decline in FY10-12 to Rs 110 crore but improve to Rs 150 crore in 2012-13 due to benefits from captive mines.
— Crisil Equities
IRB INFRASTRUCTURE
Reco Price: Rs 222,
Target Price: Rs 284.60
IRB Infrastructure Developers (IRB) is one of the largest road BOT players with total length of around 5,735 lane km of road projects under its portfolio. IRB with daily cash collection of around Rs 2.6 crore from its 10 operating projects has 9.3 per cent stake in golden quadrilateral. The company also has in-house EPC division. It has presence in four business verticals, namely BOT, EPC, airport development and real estate development. Initiating coverage with a Buy.
— Keynote Capitals
