Birla Corporation
CMP: RS 279.60
Target price: Rs 428

Batlivala & Karani Securities has retained its buy rating on Birla Corporation with a price target of Rs 428, citing attractive valuations and relative resistance to cement price fluctuations in any one market. “Going forward, Birla Corporation is expected to commission its 0.5 million tonne per annum (MTPA) expansion at Chittorgarh facility by December.

The 1.2-MTPA expansion at Satna is likely to be commissioned in two phases — 0.7 MTPA by June 2008 and 0.5 MTPA by October 2008,” the note to clients said. “With improved pricing environment and higher volumes coming from the expanded capacities, earnings growth is likely to remain strong. Moreover, due to its diversified regional mix, the company is likely to be less affected from any supply overhang in one particular region,” the note added.

India Cements
CMP: RS 224.35
Target price: Rs 250

ASK Securities has retained its buy rating on India Cements, but raised price target for the stock to Rs 250 from Rs 215, on expectations of strong earnings growth. “Considering the sharp rise in cement prices in the southern markets, and the merger of Visaka Industries with itself, we have increased our earnings estimate by 33% to Rs 6.4 billion (Rs 640 crore) for FY08(estimated) and 25% for FY09E,” the ASK Securities note to clients said. “We are positive on ICL as the southern markets are likely to see a deficit till FY09E. Due to this, the price correction in the southern markets is likely to be much lower compared with other regions,” the note added.

Unichem
CMP: RS 222.90
Target price: Rs 253

UTI Securities has assigned a market performer rating to Unichem Laboratories, slashed price target for the stock to Rs 253 and lowered forecast earning per share for the current financial year by 4% to Rs 19.3. “We believe that (the recently acquired) Niche Generics would continue to be a drag on the bottomline in FY08E as against our expectation of breaking-even,” the UTI Securities note to clients said.

According to the broking house, the key reasons for a downgrade in earnings estimate are moderate growth in the company’s domestic formulation sales, and margin pressure on export formulation sales due to the rupee’s appreciation.

HT Media
CMP: Rs 218.65
Target price: Rs 212

Citigroup Global Markets has downgraded its rating on HT Media to sell citing expensive valuations relative to earnings growth, but revised its price target upwards from Rs 190 to Rs 212. “At 27xFY09 (estimated) P/E, HT Media trades at an 80% premium to its regional print media peers, which we believe is excessive.


While we are cognisant of new business investments, we believe that the high fixed-cost base it has created over the past few quarters will stifle operating leverage,” the Citigroup note to clients said. “HT Media’s fixed-cost base compares unfavourably to other Indian media companies. While it has made some new investments, we still see the extent of increase in fixed costs as too high,” the note added.

Parsvnath
CMP: Rs 330
Target price: Rs 512

Religare Securities has initiated coverage on Parsvnath Developers with a buy rating and a price target of Rs 512. “Clear ownership rights and possession of entire land reserve are a key differentiation vis-a-vis peers,” the Religare note to clients said. “(It has) land bank spread across 47 cities in 17 states, with 80% in the fast growing Tier-II and Tier-III cities, which have high property absorption rates. Geographic spread also derisks the business from a downturn in realty prices in any particular location,” the note added.