Ask Raymond James Securites has recommended a buy on Mahanagar Telephone Nigam (MTNL) at Rs 119 with a one year price target of Rs 180. The estimated earning per share (EPS) for FY2002 and FY2003 are Rs 21.9 and Rs 24.9 respectively.
MTNL's entry into cellular, WiLL-based limited mobility services and domestic long distance services would offset reduced margins in its core business enabling it to deliver double-digit bottom-line growth.
UBS Warburg has recommended a sell on Tata Engineering (Telco) at Rs 74.8 with a price target of Rs 55. Telco reported post-exceptional loss of Rs 98.9 crore in the first quarter of FY2002. The company is expected to show positive earnings by FY2003.
However, the car business will continue to be a drag on Telco's overall business for the foreseeable horizon.
Birla Sun Life Securities has initiated coverage on Larsen & Toubro (L&T) with a buy recommendation at Rs 212.6 with a price target of Rs 293.
The engineering & construction business has good prospects and this will be the growth driver going forward. Based on an order backlog of Rs 9700 crore and average project execution cycle time of 21 months, revenues are expected to grow at the rate of 10 per cent and 15 per cent in FY2002 and FY2003 respectively.
