Wipro
Recommendation: sell at Rs 1,325
ICICI Securities
In a result preview update, ICICI Securities has maintained a sell recommendation on Wipro at Rs 1,325. The telecommunications business continues to be a drag, with steady decline in 'core' volumes.
There could be some positive surprises in terms of robust volume growth in the enterprise solutions business but margins will remain under pressure.
That's because Wipro's pricing in the enterprise space is much more competent than other players, as it is a late entrant. Net profits are estimated to decline by 10 per cent on a yearly comparison basis.
Ranbaxy Laboratories
Recommendation: buy at Rs 542
J P Morgan Securities
J P Morgan Securities has reiterated its preference for Ranbaxy at Rs 542 over Dr Reddy's in the near-term. Although the recent news of Canadian generics major Apotex Corp approval for its antibiotic cefuroxime by the US FDA caused some mild flutter of uncertainty regarding Ranbaxy's prospects of milking the product, the brokerage house does not foresee any substantial impact.
In fact, it expects some positive news for Ranbaxy on two other counts: its application to launch a generic version of Roche's Accutane and the filing of an investigational new drug (IND) for the one gm version of Cipro-OD by collaborator Bayer.
J B Chemicals
Recommendation: buy at Rs 161
Pioneer Intermediaries
Pioneer Intermediaries is bullish on J B Chemicals and Pharmaceuticals at Rs 161. The company has shown a robust growth in the past few years. It is also expected to achieve the targeted revenues and net profits of Rs 500 crore and Rs 100 crore, respectively, by 2005, up from a turnover of Rs 276 crore and a bottomline of Rs 42 crore in FY02.
After taking into consideration the growth story, strong balance sheet and conservative management with vision, the stock is trading extremely cheap at 6.1x its FY02 earnings and just 1.3 times its book value.
HCL Technologies
Recommendation: buy at Rs 196.8
Merrill Lynch Securities
In an update, Merrill Lynch Securities has maintained a buy recommendation on HCL Technologies at Rs 196.8, with a 12-month price target of Rs 260.
HCL Technologies' shares were impacted in the last week owing to speculation that the company might be buying out Perot Systems' stake in its 50:50 joint venture(JV) with Perot Systems called HCL Perot Systems (HPS).
Though such a move could be negative for HCL, the brokerage house also reminds that the company was able to maintain its market share in the past even after the termination of its JV with Hewlett Packard for the hardware business.
Auto sector
Recommendation: overweight
Sushil Investment Research
In a results preview, Sushil Investment Research continues to maintain a bullish outlook for the auto sector. Two-wheeler manufacturers like Hero Honda, Bajaj auto and TVS Motors will ride on the robust volume off take to post an estimated net profit growth of 29.8 per cent, 49.5 per cent and 205 per cent, respectively, for Q2 of FY03.
In case of four-wheelers, Tata Engineering is estimated to report net profit of Rs 70.8 crore as against a loss of Rs 61.8 crore in Q! of FY01.
