Ador Fontech: Reclaiming profits
The company is focused on increasing its revenues from the high
margins solutions business. It's transformation from a trading
company to a solutions

provider has helped it improve profitability. Considering the
company's debt free status and high return on net worth of 33%
the company is highly

undervalued

Ahluwalia Contracts: 39% upside, buy
During the last two years, top and bottom line for the company grew at
a CAGR of 36% and 26%. Going ahead, Bajaj Capital expects them to grow
at a CAGR of 14% and 27% over the next two years and recommends a buy
on the stock with an investment horizon of 15 to 18 months and target
price of Rs209 giving an upside of 38.5% from current levels


Allahabad Bank Q3FY11: Consistent performance, buy
Allahabad Bank's (ALBK) Q3FY11 result was strong on the operating
front. The NIMs improved to 3.44% up from 2.97% y-o-y mainly on
account of robust growth

in advances by ~32%. On a y-o-y basis, ALBK's NII increased by 55.7%,
opex by 42.7% & PAT by 20.4%. ALBK's RoAE improved to 24.3% from 23% a
year ago.

ALBK's asset quality has been under manageable level. At CMP of Rs202,
the stock is trading at P/ABV of 0.94 times of FY12E. Investors are
recommended to

buy the stock for a price target of Rs270

Amara Raja Q3FY11: Recovery in margins, buy
Amara Raja Batteries Ltd (ARBL) reported marginally better than
estimated numbers for Q3FY11. ARBL revenue grew 15.8% on y-o-y basis
to Rs4255.1 mn. The

operating margins in Q3FY11 stood at 15.6%. The operating margins
increased 110 basis points on q-o-q basis. ARBL reported operating
profit of Rs664.7 mn

as compared to Rs568.3 mn in Q2FY11. Asit C Mehta estimates an EPS of
Rs23.60 for FY13 and assigns a multiple of 9 times to arrive at a
value of Rs212.

Given the recovery in the margins, recommendation is upgraded to buy (CMP Rs174)

Amara Raja Q3FY11: Top line up 15.8%, accumulate
During Q3FY11 Amara Raja Batteries reported a 15.8% y-o-y growth in
its top-line at Rs4.3 bn, mainly led by strong sales in the automotive
segment. Adj

PAT grew by 19.8% q-o-q at Rs381 mn. At the CMP of Rs179, the stock is
trading at 8.8 times and 7.5 times its FY12E and FY13E earnings
estimate,

respectively. Investors are recommended to accumulate the stock

Andhra Bank Q3FY11: Margin up 10 bps, maintain hold
In Q3FY11 Andhra Bank's net profit grew by 20% y-o-y to Rs331 cr. The
bank's margin came in at 3.91%, a 10 bps increase over the Q2FY2011
margin. This was

on account of a 9 bps sequential improvement in the yield on advances
and a 25 bps increase in the investment yields. Sharekhan values the
bank at 1.3

times FY2012 book. Investors are recommended to hold the stock


Ashok Leyland Q3FY11: Exports boost volumes, buy
The top-line registered a growth of 18% y-o-y primarily on the back of
decent volumes achieved this quarter (especially in the month of
December). Volumes

were boosted mainly due to exports which contributed handsomely to
overall volumes. Exports contributed 19% to the volumes in Q3FY11
compared to just 9%

in Q3FY10 and 10% in Q2FY11. The raw material prices and rising
interest rates may prove party spoilers but the outlook of the company
still remains

positive with new products to boost its portfolio and volumes. At the
CMP of Rs60, the stock is trading at 13.3 times its FY11E EPS of Rs4.5
and at 11.3

times its FY12E EPS of Rs5.3. Investors are recommended to buy the
stock with a price target of Rs79 implying an upside of 33% from the
current levels

Ashok Leyland: Q3 performance a temporary blip, outlook bullish
During Q3FY11, Ashok Leyland reported its worst performance in the
last 6 quarters. Apart from the lower than expected volume growth, the
company reported

a sharp jump in staff costs & other expenses. Higher depreciation &
other expenses dented the PAT margins to the second lowest level in
last 5 years.

Sharekhan, however, maintains a bullish outlook on the stock
recommending a buy with a revised target price of Rs84

Asian Paints Q3FY11: Growth continues, buy
During Q3FY11, APL reported a robust 29.6% y-o-y growth in revenues to
Rs21.0 bn ahead of estimates. Strong growth in the domestic paint
sector augmented

revenues during the quarter. However, the operating profit surged 8.4%
y-o-y to Rs3.4 bn. this can be attributed to 340 bps y-o-y expansion
in raw

material expenses as % revenues to 59.7%. Consequently, operating
margins declined 320 bps y-o-y to 16.4%. The PAT increased 11.0%
y-o-y. Encouraged by

APL's Q3 results, Jaypee recommends investors to buy the stock for a
revised price target of Rs3085, representing an upside of 17.6% from
the current

levels (CMP Rs2622)


Axis Bank Q3FY11: Excellent results, buy
Axis Bank has reported excellent set of numbers with net profit up by
36% y-o-y at Rs891 cr which is higher than market expectations. Higher
than expected

NII growth and delta in trading gains were prime reasons for the
variance. NII grew 28% y-o-y and 7% q-o-q driven by robust loan growth
and sequential

margin improvement. The bank performed strongly well on most of the
operating parameters during the quarter. At CMP of Rs1245, the stock
is trading 2.4

times its FY12 adjusted book and 12.1 times its FY12 earnings.
Investors are recommended to buy the stock for a price target of
Rs1601

Bajaj Auto Q3FY11: Strong volume growth continues, buy
For Q3 Bajaj's volumes grew 17% y-o-y to 946850 units, driven by 18%
y-o-y growth in motorcycles and 13% y-o-y growth in three-wheelers.
Domestic volumes grew 21.5% y-o-y, driven by 22.6% y-o-y growth in
domestic motorcycle volumes due to robust sales of Discover and
Pulsar. The stock is attractively valued at 12.2 times FY12E and 11
times FY13E EPS. Investors are recommended to buy the stock

Bajaj Auto Q3FY11: Robust performance, buy
Bajaj Auto's Q3FY11 results were in line with expectations at the top
line, while bottomline was a tad above expectations due to higher than
expected other income and lower than anticipated fall in EBITDA
margins. Total income grew 27% y-o-y, EBITDA margins were at 20.3% and
net profits stood at Rs6672 mn, a growth of 40% y-o-y. With the better
than expected results during the quarter, LKP securities slightly
increases FY11E EPS from Rs85.8 to Rs88.4 and with expectation of a
20% sustainable margin and a healthy volume performance, it raises its
FY12E EPS from Rs101 to Rs106.8. LKP securities recommends investors
to buy the stock for a price target of Rs1680, implying an upside of
30% from CMP of Rs1297

Bajaj Auto: Impressive set of numbers for Q3, buy
Bajaj Auto reported a 26.7% y-o-y improvement in its topline at Rs41.7
bn mainly on account of 17% y-o-y volume growth and 8.3% y-o-y
realization growth. With a projected 13.7% CAGR in earnings for the
period FY11-FY13E and return ratios in excess of 60%, the current
valuation at 13 times FY12E EPS & 11.2 times FY13E EPS looks
attractive. Maintain Accumulate

Bank of India: Robust business growth of 23% in Q3
The business of the bank grew by a healthy 23%, with both deposits
advances growing 23%. However, sequentially deposits grew by 4.8%
advances by 4.5%.

CASA grew by 22% y-o-y by 1.8% q-o-q. Way2wealth maintains a buy
recommendation with a price target of Rs534

Bharat Forge Q3FY11: Top line up by 11.2%, accumulate
Durign Q3FY11 Bharat Forge's consolidated top-line grew by 11.2%
q-o-q, with EBITDA performance improving by 14.9% q-o-q. Adjusted PAT
stood at Rs814 mn.

Operating leverage, coupled with higher utilization at the new
non-auto facility in FY12E, will lead to EBITDA margins in excess of
25% on a standalone

basis by FY12E. Investors are recommended to accumulate the stock

Bharti Airtel: Momentary upset, outlook positive
During the quarter, PAT was drastically down by 21.5% (q-o-q) at
Rs1303 cr mainly affected by one time brand relaunch cost (Rs340 cr)
and restatement

losses (adverse swing of Rs400 cr). At CMP of Rs332, the stock is
trading at 15.7 times on TTM EPS of Rs21.1. Investors are recommended
to buy the stock

for a 12-month price target of Rs.392, implying an upside of 18% from
the current levels

Bharti Airtel Q3FY11: strong revenue growth, accumulate
Bharti Airtel's consolidated total revenue increased 53% y-o-y to
Rs157.5 bn in Q3FY11. Sequentially, the revenues grew 3.6%. The
company's consolidated

EBIDTA rose 22% y-o-y to Rs50 bn. Asit C. Mehta expects the revenue to
register a CAGR of 31.8% during FY10-12. Investors are recomemnded to
accumulate

the stock

Bharti Airtel: Earnings impacted by one offs, hold
Bharti Airtel (Bharti)'s Q3FY11 revenues were largely in line with our
expectation, while the operating profit and earnings were below
expectation by 6.1%

and 20.9% respectively. The consolidated net profit after tax came in
at Rs1,303 cr vs the set expectation of Rs1647 cr, and was 21.4% lower
on a

sequential basis. The brand relaunch expense (~Rs340 cr) coupled with
exchange rate fluctuation losses booked in the net interest head
contributed to the

lower headline earnings. Sharekhan remains confident of Bharti's
initiative of spreading its wings in the African market for growth and
appreciation, and

take cognisance of the improving underlying business fundamentals in
Africa. However, the regulatory uncertainly in the Indian prevents to
upgrade the

rating on the stock and hence investors are recommended to hold the
stock for a price target of Rs335 (CMP Rs323)

BHEL Q3FY11: Top line surges 25% y-o-y to Rs88.5 bn
BHEL reported strong results for Q3FY11 with healthy revenue growth,
robust margin improvement despite commodity price rise, and optimistic
outlook for

future order inflows. The quarter witnessed top line of Rs88.5 bn,
healthy growth of 24.6% y-o-y. Jaypee values BHEL at 22 times FY12E
EPS of Rs123.1 to

arrive at a target price of Rs2708 per share & maintains buy rating on the stock

BHEL Q3FY11: Order flows to remain robust, buy
BHEL reported order inflow of Rs122 bn and Rs365 bn for Q3FY11 and
9MFY11, respectively. Given the large pipeline of orders visible, the
management reiterated its ability to not only achieve its full year
order inflow guidance of Rs600 bn, but also order inflow growth for
FY12. The stock is currently trading at 19.5 times and 15.7 times its
FY11 and FY12 estimated earnings. Investors are recommended to buy the
stock

Birla Corporation: Attractive valuations, buy
Birla Corp has a strong balance sheet and had net cash of Rs100/share
in FY10 and Rs135/share in FY11 (~40% of market cap). The stock trades
at extremely

attractive valuations of 5.6 times FY12E EPS and 4.6 times FY13E EPS,
and $52/ton (for 8.1mt capacity) and $37/ton (for 10.8mt capacity),
which is at a

discount to its peers. Investors are recommended to buy the stock

Canara Bank: RoE expected to improve over FY10-13, buy
Anand Rathi expects a 27.1% CAGR in earnings and around 25% in RoE
over FY10-13 and hence maintains a buy rating on the stock for a price
target pf Rs863

Corporation Bank Q3FY11: Strong credit growth, buy
During the quarter, Corporation Bank reported 18% q-o-q growth in net
interest income backed by improvement in NIM and strong credit growth.
It reported a

net interest margin of 2.71% in the quarter as against 2.54% in
Q3FY10. The Stock has corrected significantly in last three months and
the current

valuations are attractive. At CMP of Rs576, the stock is trading at
P/BV of 1 time its FY2012 BV and P/E multiple of 5 times its FY12E
EPS. Investors are

recommended to buy the stock for a 12-month price target of Rs760,
implying an upside of 32% from its current levels

Crompton Greaves Q3FY11: Mixed bag, outlook optimistic
Crompton Greaves reported mixed set of results with lower revenue
growth due to slow down in power systems business while it managed to
maintain its

operating margin despite escalating raw material costs. The standalone
revenues grew by 14.3% y-o-y while consolidated revenues grew by a
tepid 6.7%

y-o-y. The slow down in domestic as well as international power
systems business negatively impacted the revenue traction. Although
the stock will see

near term headwinds on account of declining growth in its core power
systems segment, Jaypee continues to be optimistic about the long term
prospects of

Crompton Greaves. Sustained growth momentum in consumer products and
industrial systems segment, better operational efficiency than peers
and healthy cash

generating business model will help to steer through while power
systems is passing through modest period. Revival in ordering
activities from PGCIL and

power utilities will be the key upside trigger. Investors are
recommended to buy the stock for a price target of Rs321 (CMP Rs279)

Crompton Greaves Q3FY11: Net profit jumps by 30% y-o-y
Crompton Greaves reported mixed set of results with lower revenue
growth compared to expectations, on account of slower execution in
Q3FY11, while it

managed to maintain its operating margin and record robust growth in
net profit. Net profit jumped by robust 30% y-o-y to Rs1.76 bn for
Q3FY11 compared to

Rs1.35 bn recorded in same quarter last year. The bottom line is 4%
higher than our estimates of Rs1.69 bn. The growth in net profit is
due to lower tax

outflow in the quarter at 22.4% against 34.2% paid last year. Jaypee
will release a detailed note post the conference call scheduled on
Monday at 3 pm

after getting more clarity on order intake and backlog as well as
business scenario prevailing in international markets



Dabur Q3FY11: Mixed bag, maintain neutral
Dabur's Q3FY11 results came marginally below estimates with 17% y-o-y
jump in revenues to Rs10.9 bn, operating profit increased 21.2% y-o-y
to Rs2.2 bn

and APAT increased 10.9% y-o-y to Rs1.5 bn. However, 260 bps decline
in gross margins partially eroded the operational performance. The
growth in

operating profit was partially offset by lower other income, higher
interest expenses and 220 bps increase in tax rate. Going forward key
growth

categories – hair oil, shampoo, oral care and home care are expected
to witness escalating competition in the near term. Jaypee remains
cautious on

Dabur's earnings till more clarity emerges on the competition and
recommends investors to maintain neutral with a revised target price
of Rs102 (CMP Rs93)

Deepak Fertilizers: Net sales in Q3 rise 2%, buy
The net sales for Deepak Fertilizers and Petrochemicals Corporation
grew by 2.3% y-o-y to Rs3703 mn. Prabhudas Lilladher is positive on
DFPCL on the back

of improving feedstock availability, stabilizing market scenario and
higher growth CAGR, going forward. Maintain buy for a target of Rs225

Dr Reddys Labs: Buy for an upside of 15%
The top-line of the company was reported at Rs1898 cr, growth of 10%
y-o-y basis, primarily due to higher revenues from US market, which
stood at 582cr

growth of 48% on y-o-y basis. PSAI segment showed decline of 5%, y-o-y
due to price erosion and lower order flow. Going forward, order book
for API

business is significant and capacity is in place. During this quarter
API business gross profit reported to 28% against 31% in Q3FY10. It is
expected do

well in Q4. Investors are recommended to buy the stock for a price
target of Rs1787, implying an upside of 15.1% on the CMP of Rs1552

Edelweiss Capital: Attractive valuations, buy for a target of Rs49
The core broking business remains under pressure due to weak cash
volumes in the market. Financing business was impacted due to higher
borrowing costs &

lower spreads. IB outlook will depend to some extent on equity market
outlook. However, despite short term pressure, valuations are
attractive from long

term perspective. Prabhudas Lilladher recommends buy on the stock for
a target of Rs49

Escorts: Revenue up 38% y-o-y, buy
Escorts Ltd (EL) reported below than estimated numbers for Q1FY11. EL
revenue grew 38.2% on y-o-y basis to Rs8377.4 mn. Operating profit
margins declined

370 bps on y-o-y basis to 5.2%. Net profits Increased marginally on
y-o-y basis to Rs254.9 mn. Given the pressure on margins, EPS estimate
is lowered to

Rs17 in FY12, however, investors are recommended to buy the stock for
a price target of Rs153 (CMP Rs119)

Everonn Education Q2FY11: Net profit rises 51%, buy
Everonn Education disclosed a phenomenal rise in the standalone profit
for the quarter ended Sep 2010. During the quarter, net profit of the
company

increased 50.63% to Rs159.89 mn as compared to Rs106.15 mn in the same
quarter last year. Firstcall India Equity recommends buy in this
particular scrip

with a target price of Rs703

Federal Bank Q3FY11: Profit up 30%, maintain buy
Federal Bank's Q3FY11 profit grew 29.8% led by 17.4% NII growth
on y-o-y basis. Anand Rathi maintains a buy rating on the stock for a
price target of

Rs564

Godrej Consumer Products: Topline surges 89%, hold
Godrej Consumer Products reported a satisfactory set of numbers for
the quarter ending December FY11. The company registered a topline
growth of 89.4%

y-o-y from Rs5175.7 mn to Rs9804 mn. Parag Parikh recommends investors
to hold the stock at CMP Rs384.9

Godrej Consumer Products: Net sales up 89% in Q3, buy
GCPL's consolidated net sales grew by 89.4% y-o-y to Rs980.4 cr
(ahead of Sharekhan's estimates of Rs966.9 cr) while the bottom
line grew by

39.6% y-o-y to Rs119 cr (slightly lower than an estimate of Rs124 cr).
Sharekhan recommends a buy on the stock for a price target of Rs456

Godrej Consumer Q3FY11: Revenues up 90% y-o-y, buy
During Q3FY11, GCPL recorded 90.2% y-o-y increase in revenues to Rs9.9
bn – in line with estimates. The growth in revenues was driven by –
12.2% y-o-y

jump in erstwhile domestic business and series of acquisitions in last
few quarters. The operating profit increased 69.4% y-o-y to Rs1.7 bn
lower than the

growth in revenues primarily due to higher raw material expenses,
increase in AP expenses and surge in other expenses. Consequently,
operating margins

declined 210 bps y-o-y to 17.6%. The PAT increased 39.6% y-o-y to
Rs1.2 bn. Despite aggressive competition in the domestic market, the
company is able to

maintain its market share in almost all categories. Jaypee research
maintains a positive bias towards the company and recommends investors
to buy the

stock for a price target of Rs436 (CMP Rs400)


Grasim Q3FY11: 18% jump in net revenue, buy
Grasim's net revenue for Q3FY11 grew 18% y-o-y (30% q-o-q) to
Rs12.1 bn (v/s an estimate of Rs12.1 bn). Motilal Oswal maintains a
buy rating on the

stock at CMP Rs2369 for target price of Rs2852


Great Offshore: Revenues disappoint, estimates lowered
Great Offshore's (GOFF's) revenues declined 18% on a y-o-y basis and
2% on a q-o-q basis to Rs1,978m. This was largely on account of the
two rigs which

were chartered for a shorter period of time during the quarter as well
as certain offshore vessels which were deployed in the spot market
where rates were

soft. On the back of weak revenues and EBITDA margins, PAT estimate
for FY11 is lowered by 10%. Also the target price on the stock is
reduced from Rs497

to Rs377 based on 6.5x FY12 on account of the NAV of the company not
being available as well as overall reduction in multiples. However,
investors are

recommended to accumulate the stock (CMP Rs299)

GlaxoSmithKline Healthcare: Net profit surges 31%, buy
GlaxoSmithKline Healthcare reported phenomenal rise of 30.87% net
profit for the quarter ended September 30, 2010. Firstcall India
Equity expects the company to keep its growth story in the coming
quarters and recommends a buy in this particular scrip with a target
price of Rs2429 for medium term investment


Glenmark Pharma: Specialty biz grows by 25.1%, buy
During the quarter, the company's specialty business grew by 25.1% on
account of a robust growth across geographies. Excluding the licensing
income the

branded formulations grew by a robust 33.7% during the quarter. The
domestic formulations business continued to remain the spearhead with
a 29.7% growth

year on year (y-o-y). While 24% of the above growth came from existing
products, the remaining 6% was contributed by the new launches (6 new
launches). At

CMP of Rs292, the stock trades at 16.6 times its FY2011E earnings and
15 times its FY2012E earnings, which is at a discount of 20-25% from
its peers.

Sharekhan believes that the risk-reward ratio is favourable for the
stock at the current levels and recommends to buy the stock for a
price target of

Rs371

Glenmark Pharma Q3FY11: Reasonable growth, buy
Glenmark Pharmaceuticals Limited reported sales of Rs750.8 cr, a
reasonable growth of 17% y-o-y. Specialty business, which was the
major contributor to

the growth, grew by 25% y-o-y. EBITDA for the quarter is Rs 174.1 cr
representing margins of 23% as against 26% in Q3FY10 and 25% in
Q2FY11. Adverse forex

movement and discontinuance of Tarka spoiled the party for the
company. At CMP of Rs291, the stock is trading at an attractive
valuation of P/E of 16.3

times on FY11e EPS of Rs17.9 & 14.0 times on FY12e EPS of Rs20.8.
Investors are recommended to buy the stock for a price target of Rs374

Glenmark Pharma: Strong revenue growth, buy
Glenmark's (GNP) reported interims were in line with estimates.
Majority of the contribution came in from the Specialty business, even
as its Generics

business was a laggard. Strong revenue growth was witnessed in key
geographies; India (up 30% y-o-y), SRM (up 27% y-o-y) and Europe (on a
low base) were

the prime contributors. Management has guided 25% revenue growth in
FY11 & FY12 driven by niche product launches. At the CMP of Rs295, the
stock is

trading at 14 times its expected FY12E EPS. Investors are recommended
to buy the stock for a price target of Rs379

HCC Q3FY11: Disappointment continues, PAT down 16% y-o-y
Hindustan Construction Company (HCC) posted a muted sales (net) growth
of 11.1% at Rs10bn in Q3FY11 which was below expectation. This is
attributed to slow moving hydro power projects in addition to
non‐contribution from AP related projects. EBITDA margins declined
y-o-y by 42.4bps at 12.6% and by 65bps q-o-q. Also, during the quarter
the company has reported a loss of Rs61m on account of an exchange
loss. Other extra‐ordinary items include profit on claims received to
the tune of Rs60m and taxation of Rs28m of the previous quarters.
Thus, adjusting to the above one‐off's, adjusted PAT stood at Rs108m
(16% down y-o-y). Verdict on Lavasa would be the key event to track in
the near future. As the CMP has factored in fears pertaining to
business slow down and thus earnings, any positive news flows on
Lavasa would be the key trigger, going forward. Investors are
recommended to accumulate the stock for a price target of Rs46 (CMP
Rs40)

HCL Tech Q2FY11: Margins disappoint, hold
Taking into account the street concern regarding significant decline
in operating margin (i.e. from 22.7% in Q1FY10 to 16.3% in Q1FY11),
the management

has shifted its focus from achieving industry leading volume growth to
profitable growth. The management is targeting to attain operating
margin level of

18.6% by Q4FY11 by improving utilization of software services.
Investors are recommended to hold the stock for a price target of
Rs522 (CMP Rs502)

Hero Honda: Lower EBITDA margins, sell
During the quarter, the company reported EBITDA margins of 11.2% (down
610 bps y-o-y and 180 bps q-o-q) which were below the estimates of
13.5% Rising

input costs coupled with higher costs arising out of change in
emission norms led to a 120 bps increase in RM cost to sales ration
which during the

quarter stood at 73.9% as against 72.7% in Q2FY11. Net profit fell by
20% y-o-y and 15% q-o-q. One time exceptional item of Rs798 mn arising
out of

litigations coupled with lower EBITDA led to a 20% y-o-y fall in net
profit of the company. Based on the results, investors are recommended
to sell the

stock

Hindustan Zinc: Q3 revenue up 20%, buy
The company's revenue and PAT increased by 17% and 12% on y-o-y
basis to Rs2630.16 cr and Rs1229.58 cr. On q-o-q basis revenue and PAT
increased by 20% and 36% respectively. Monarch maintains a buy rating
with a price target of Rs1538 in 12-15 months



ICICI Bank: Buy for a target of Rs1266
ICICI has registered steady growth in financial and operating
performance over the last few quarters. JRG Sec maintains a buy rating
on the stock for a

price target to Rs1266

ICICI Bank Q3FY11: PAT up 31% at Rs14.4 bn, buy
ICICI Bank's Q3FY11 PAT grew by 30.5% y-o-y and 16.2% q-o-q to
Rs14.4 bn, on account of healthy Net Interest Income (NII) growth and
lower credit

costs during the quarter. Prabhudas Lilladher maintains buy rating on
the stock for a price target of Rs1377



IDBI Bank Q3FY11: Strong PAT growth, buy
IDBI Bank reported strong PAT growth of 58% y-o-y to Rs4540 mn well
ahead of estimates mainly on account of NII growth of 67.5% y-o-y and
lower employee

costs. However, the deviation was moderated by the increase in
provisions of 176% y-o-y due to higher npas (slippages of Rs6.9bn,
gross npas of 2.2% a 22%

increase). Net interest income (NII) grew 93% y-o-y to Rs3232 mn.
However, the quality of assets continues to deteriorate and the CASA
initiative has

worked against the bank. Thus the benefits are likely to be pushed
beyond LKP Securities investment horizon consequently book multiple is
downgraded to

1.25 times FY12 ABV. Investors are recommended to buy the stock with
SOTP target price of Rs189 per share

Idea: Strong growth in Q3, margins to undergo pressure
Idea reported robust 3QFY11 results on back of strong seasonal demand.
Idea registered the highest net adds during the quarter. The company
has witnessed

strong growth in the old as well as new circles. Further Indus tower
also have aided revenue growth for Idea. On the back of volume led
efficiencies, the

company was able to maintain stable margins. However, going forward,
net profit margins are expected to be under pressure on account of the
higher

depreciation and interest cost due to 3G. In view of this, Asit C
Mehta maintains its hold recommendation with a price target of Rs75

Idea Q3FY11: Strong subscriber addition, maintain neutral
Key highlights from the Q3FY11 results: The company showed a strong
revenue growth of 8.2% for the quarter led by the strong subscriber
addition and

marginal increase in ARPU. The total subscriber base has reached 81.8
mn as on Dec'31, 2010. The ARPU increased marginally from Rs167 to
Rs168 in Q3FY11

as compared to a sharp decline in ARPU from Rs182 in Q1FY11 to Rs167
in Q2FY11. Jaypee maintains its neutral rating on Idea Cellular but
have increased

its target price for the stock from Rs72 earlier to Rs77. This implies
a 7% upside from the current levels. The revision in the target price
is driven by

a lower capex estimate for the future years and stability in the RPM
for the company going ahead


Indian Hotels: Hold for a target of Rs106
Net sales of the company grew by 10.8% y-o-y to Rs485.3 cr. The
operating profit declined by 4.6% y-o-y to Rs144.3 cr. The company
also reported a 20.8%

y-o-y decline in the adj PAT to Rs52.0 cr. At the current market price
of Rs91 the stock trades at 28.4 times its FY2012E consolidated
earning per share

(EPS) of Rs3.2. Investors are recommended to hold the stock

Ipca Labs: Attractively valued at Rs313, buy
At the current market price of Rs313, Ipca is attractively valued at
15.6 times FY11E earnings and 13.1 times FY12E earnings. Based on the
earnings

visibility from the expanded field force in the domestic market &
increasing contribution from Russia & US in the export formulations
segment, Sharekhan

maintains buy rating on the stock for a target of Rs381

IRB Infra Q3FY11: 54% revenue growth, buy
IRB has reported revenue of Rs6,688 mn in 3QFY11 an increase of 54%
y-o-y. Although IRB has positively surprised with operating margin 44%
against our

expectation of 38% for FY11, due to delay in start of construction of
Panji Goa Bot Project (scheduled to be started in October 2010) and
Tumkur –

Chitradurg project (scheduled to be started in January 2011). The
target price for IRB is revised to Rs292 against Rs305, however
investors are

recommended to buy the stock (CMP Rs201.90)

ITC: Current weakness an opportunity, buy
In view of the impending uncertainty around excise hike in the
forthcoming budget, ITC has corrected 12% off the highs. Historically,
from Nov10 to Feb11,

ITC has underperformed the market 7 out of 11 times owing to concerns
on excise duty hike in budget. This is beleived to be a good buying
opportunity as

ITC has amply proven the resilience of its Cigarette business in the
past. Investors are recommended to buy the stock for a price target of
Rs208,

implying an upside of 30% from the CMP of Rs160


Jagran Prakashan Q3FY11: PAT up 32% y-o-y, buy
Jagran Prakashan Ltd (Jagran) reported 26% y-o-y growth in revenues to
Rs2860 mn. The growth was primarily triggered by growth in
advertisement revenues

due to higher yields and increased space. The operating profit
increased 37% y-o-y to Rs897 mn. The PAT increased 32% y-o-y to Rs526
mn. EPS stands at

Rs1.75 for the quarter. At CMP of Rs122, stock trades at 18.4 times
and 15.9 times our EPS estimate for FY11E and FY12E respectively.
Investors are

recommended to buy the stock for a price target of Rs152

Jaiprakash Associates: Buy for a target of Rs142
In Q3FY11 JPA posted revenue of Rs29 bn, up 1% y-o-y, EBITDA of Rs7.9
bn, up 2% y-o-y and net profit of Rs2.3 bn, down 26% y-o-y. Motilal
Oswal expects

JPA to post net profit of Rs7.2 bn in FY11, Rs12.3 bn in FY12E and
Rs16 bn in FY13. Investors are recommended to buy the stock

Jain Irrigation: Adverse weather condition impacts Q3 sales
Jain Irrigation Systems' net sales grew by 14.8% y-o-y to Rs7361
mn (PLe: Rs8251 mn) and were lower than expected mainly on account of
lower micro

irrigation sales, impacted by the extended monsoon during the quarter.
Prabhudas Lilladher is positive on the business of JISL and recommends
a buy on the

stock

JK Lakshmi Cement: Q3 results in line, maintain buy
JK Lakshmi Cement reported lackluster performance in the current
quarter due to declining volume & realization growth and escalating
costs. However, the

stock is available at EV/tonne of $61 for its FY12E capacity - almost
50% discount to the current replacement cost, making it an attractive
buy

JP Associates: PAT above expectation, accumulate
Hit by a slowdown in Yamuna Expressway (YEW) project, construction
revenues (constituting 44% of the total revenues) de-grew by 23% y-o-y
and 20% q-o-q.

Cement sales was, however, good on account of a 36% y-o-y growth in
dispatches during the quarter at 3.7m tonnes, registering a 30.5%
y-o-y growth. Real

Estate income at Rs4.2bn continued to grow this time by 23% y-o-y
which was also fruitful to the overall growth. Lower-than-expected
interest cost and

better margins on real estate were the main deviations from
expectations. Thus, APAT figure of Rs2.3bn was above the estimate of
Rs2bn. Investors are

recommended to accumulate the stock for a price target of Rs98


Jyothy Labs Q3FY11: Cost inflation hits margins, exit
Jyothy Laboratories reported a poor set of numbers for the quarter
ended December FY11. Cost inflation across all products impacted the
Company's margins.

Parag Parikh recommends investors to exit JLL

Jyothy Labs: Net sales for Q3 up 10%, hold
The comapny's net sales for Q3FY11 that grew by 9.6% to Rs147.7 cr
were below expectations. This was mainly on account of Home Care
segment which de-grew

by 10.7%. Way2wealth maintains Hold rating on the stock at CMP Rs241

Kotak Mahindra Bank: Buy for a revised target of Rs531
Kotak Bank continues to perform well in its lending operations.
Outlook for most of its subsidiaries remains largely positive, while
the insurance business is likely to take another couple of quarters to
consolidate. Prabhudas Lilladher maintains a buy rating on the bank
with a revised price target of Rs531

KPIT Cummins: Strong traction in SAP, buy
KCIL is seeing strong traction in SAP and its wholly owned SAP
providing subsidiary recently received the "Gold channel partner"
status from SAP. KCIL can

be bought at Rs147-151 levels with targets of Rs175-207


Kalpataru Power Q3FY11: Strong order book, buy
Considering the strong order book of KPTL, the management has guided
for 15 to 18% revenue growth over next six quarters while maintaining
current level

of margins. Jaypee maintains a buy rating on the stock with SOTP based
price target of Rs217.

KPIT Cummins Q3FY11: Revenue up 53%, buy on dips
KPIT's Q3FY11 revenues grew 19% q-o-q and 52.91% y-o-y to $60.4
mn as CPG Solutions & In2Soft Gmbh got consolidated for the full
quarter in Q3FY11.

The valuations look attractive at current levels and hence Nirmal Bang
gives a Hold rating on the stock and recommends investors to buy on
dips

L&T Q3FY11: Strong top-line growth, buy
During the quarter, the company's revenue increased by 40% y-o-y
largely led by the improved execution in infrastructure and power
orders. Revenues from

E&C segment went up by 42.4% to Rs10004 cr from Rs8015 cr in Q3FY10.
Company's sales is up 22% for the 9MFY11 and it's well on its way to
achieve guidance

of 20% topline growth. At CMP of Rs1679, the stock is trading at 25
times its FY12 earnings, which is at significant discount to its
historical averages.

Investors are recommended to buy the stock for a price target of Rs2160

LIC Housing Finance: Robust growth, buy
LICHF has recorded robust business growth. Sanctions grew by 28% y-o-y
to Rs58 bn while disbursements were up by 28% y-o-y to Rs46 bn in
3QFY11. Loan book registered a 36% y-o-y growth and net profits were
up by 39% y-o-y. LICHF to benefit from strong parentage, access to low
cost funds, improved asset quality and buoyancy in demand for housing
loans. Asit C Mehta continues to be positive on the company and
recommends investors to buy the stock for a price target of Rs205 (CMP
Rs173)

Lupin: 17% rise in net sales for Q3FY11, buy
Lupin's Q3FY11 operational performance was in line with Motilal
Oswal's expectations. Net sales grew 17% y-o-y to Rs14.7 bn (v/s
an estimate of

Rs14.7 bn). Motilal Oswal maintains a buy rating on the stock with a
target price of Rs490

M&M Financial Services Q3FY11: NII up 32% y-o-y, hold
MMFSL reported a PAT growth of 24% y-o-y to Rs1159 mn and an operating
profit growth of 19.6% y-o-y to Rs2277 mn. PAT was ahead of estimates
mainly on

account of the 46% y-o-y loan growth . Net interest income (NII) grew
32% y-o-y and advances by 46% y-o-y. At CMP of Rs700, the stock is
trading at 2.5

times for FY12E. LKP securities believes that an improving asset
quality and sustained asset growth should expand valuations narrowing
the gap between

historical high of P/ABV 3x. However, given the current interest rate
cycle and the reliance of the company on borrowings the agent
maintains P/ ABV of

2.5 times and recommends investors to hold the stock for a price target of Rs693

MM Forgings Q3FY11: Net sales surges 61.7% y-o-y
During Q3 the company reported net sales of Rs68.9 cr in Q3FY11
against Rs68.7 cr in Q2FY11 representing a q-o-q growth of 0.2%.
However, on a y-o-y basis net sales grew by 61.7% in reflecting the
improved demand scenario for auto and auto ancillary industry. MMFL is
currently trading a PE of 6.73 times FY11E and 5.76 times FY12E EPS

Mangalam Cement: Q3FY11 results in line, buy
Mangalam Cement's current quarter financial performance was in
line with Jaypee's expectations. Net Sale recorded de-growth of
26% y-o-y to

Rs1097 mn. Jaypee recommends a buy on the stock for a price target of Rs164

Marico: Decent quarter, hold
Marico reported a decent set of numbers for Q3FY11. The topline grew
by 22.1%, from Rs6,695.7 Mn to Rs8,177.4 Mn. This was on the back of a
strong volume

growth of 15%. Raw materials experienced a sharp price increase,
especially Copra and Rice bran oil. Profit before tax was almost flat
however a reduction

in taxes (due to MAT Credit and deferred tax) led to a 12% increase in
reported PAT at Rs695.3 Mn. EPS stood at Rs1.1. At CMP of Rs120.1, the
stock is

trading at a PE multiple (TTM) of 27.7 times. Volume growth continues
to be impressive. Kaya business is showing early signs of recovery.
Inflation has

hit margins however the company has considerable pricing power.
Investors are recommended to hold the stock

Marico Q3FY11: Robust volumes, maintain buy
Marico reported a robust volume performance was driven by 5% and 13%
volume growth in its flagship brands, Parachute and Saffola
respectively. Prabhudas

Lilladher maintains a buy rating on the stock with a one year price
target of Rs150

Maruti Suzuki Q3FY11: Net profit declines by 18%, hold
Maruti posted 18% drop in Q3FY11 profit as a stronger yen, higher
royalty payments and increased raw material prices dampened gains from
record sales. At

the current price of Rs1218 per share, Maruti is currently available
at 15.55 times FY11E and 12.43 times FY12E. Investors are recommended
to hold the

stock

Maruti Suzuki: Positive outlook on good volumes, buy
Maruti Suzuki's Q3FY11 earnings were inline with our expectations with
revenues up 27% y-o-y and 4% q-o-q to Rs9494.5 cr. During the quarter
the company

achieved its highest ever sales volumes with October registering its
highest ever sales volumes (in a month). The domestic volumes
increased by 37% y-o-y

and 8% q-o-q due to festive season demand, improving economic
conditions, higher penetration of CNG variants, etc. On the export
front the sales have

registered drop of 20% Y-o-Y and 13% q-o-q. This is mainly on account
of lower scrapage value resulting in low demand from Europe. At the
CMP of Rs1239,

the stock is trading at 15.3 times its FY11E EPS of Rs82 and at 12.9
times its FY12E EPS of Rs97. Investors are recommended to buy the
stock for a price

target of Rs1552

Maruti Suzuki Q3FY11: Sales up 26% y-o-y, buy
MSIL's net sales were inline with estimates at Rs94.4 bn up 26.6%
y-o-y on the back of 28.2% y-o-y and 5.4% q-o-q improvement in
volumes. However, higher

input costs and higher staff costs (due to one time annual
restructuring cost) impacted the profitability of the company during
the quarter. EBITDA

margins during the quarter stood at 9.5%, largely impacted due to one
time increase in staff cost. Apart from this adverse yen movement and
higher input

costs also impacted the profitability of the company. Net profit
during the quarter stood at Rs5.6 bn down 17.8% y-o-y. MSIL's stock
price has corrected

significantly in the last one quarter which gives a good opportunity
to enter the stock at current levels. hence investors are recommended
to buy the

stock for a price target of Rs1395 (CMP Rs1252)

Maruti Suzuki Q3FY11: Maintain buy despite margin concerns
Maruti Suzuki (Maruti)'s 3Q FY11 results were below expectations at
the operating and net levels. EBITDA dropped significantly by 20% to
Rs9bn, while

EBITDA margins decelerated by 600 bps y-o-y and 120bps q-o-q to 9.5%
mainly due to spiraling commodity prices, inferior product mix in the
domestic

markets, lower export realizations and unfavorable currency movements
(appreciating Yen and depreciating Euro). Margins were also under
pressure due to

higher employee costs. LKP Securities remain positive on Maruti,
though commodity prices, higher than expected competition and forex
may act as risks to

their expectations and recommends investors to buy the stock for a
price target of Rs1589 (CMP Rs1233)

ONGC: 20% upside, buy for a target of Rs1365
ONGC trades at attractive valuations compared with its global peers on
an EV/BOEbasis (40-50% discount). Motilal Oswal's SOTP-based target
price for ONGC

is Rs1365, implying a 20% upside from current price. Maintain buy


OnMobile Q3FY11: Net profit up 59% y-o-y, buy
OnMobile Global Limited's (OGL) consolidated revenue registered a 29%
y-o-y growth for 3QFY11 to Rs1,486 mn, vs. Rs1,155 mn in 3QFY10. Its
net profit

registered a 59% growth y-o-y to Rs209 mn in 3QFY11 from Rs132 mn in
3QFY10. Despite of lower domestic revenues, as expected OnMobile
witnessed strong

traction in the international revenues. Further the launch of 3G
services by operators and access to 3G video technology of Dilithium,
will drive data

revenues for OnMobile as 3G and VAS revenues are expected to be
critical for growth of telecom revenues. OGL's revenues are expected
to register a 25%

CAGR during FY10-12 and net profits to register a 67% CAGR during the
same period. Investors are recommended to buy the stock for a price
target of Rs385

(CMP Rs243)

Orient Paper & Ind: Net profit for Q3 rises 2.3%, buy
In its Q3FY11, Orient Paper and Industries posted a net profit of
Rs30.9 cr (a growth of 2.3% y-o-y. At CMP Rs51, the stock trades at a
PE of 5.6 times

and an EV/EBIDTA of 3 times discounting its FY2012 earnings estimate.
Sharekhan recommends investors to buy for a target at Rs60

Persistent Systems: Mixed bag results for Q3
Persistent Q3FY11 results were a pack of positives and negatives.
Revenue grew 4.2% q-o-q to Rs1.95 bn and 6.7% q-o-q to $43.2 mn.
EBITDA margins declined by 107bp q-oq to 21.9%. The EPS grew by 1.1%
q-o-q to Rs9.02 ,a touch below Prabhudas Lilladher's expectation

Petronet LNG Q3FY11: Strong quarter, maintain buy
Motilal Oswal is increasing their FY11 EPS by 15% to Rs8 to factor-in
strong Q3FY11 reported numbers and higher volume assumptions in
Q4FY11. Motilal Oswal values Petronet LNG at Rs150/share and maintains
Buy recommendation with a target of Rs150

Phoenix Mills Q3FY11: Net profit up 133.3%, buy
During Q3FY11 Phoenix Mill's revenues were up 49.3% to Rs451 mn and
net profit grew by 133.3% to Rs238 mn. The variance in the net profit
figure was

mainly due to higher-than-expected other income of Rs71 mn. The stock
trades at a P/E of 17.6 times FY13E EPS. Investors are recommended to
buy the stock

Polaris: Results in-line, attractive valuations
Polaris Software Laboratories Ltd (Polaris) Q3 FY11 revenues from
software products and services grew 3% q-o-q. PAT increased 4.2% q-o-q
to Rs50 crs and

was also in line with estimates. At CMP of Rs169, the stock is trading
at a PE multiple of 8.41 times its FY11 estimated EPS & 7.40 times its
FY12

estimated EPS. The valuations look attractive at current levels given
that some of the company's peers are trading at significantly higher
multiple.

Investors are recommended to buy the stock for a price target Rs230,
implying an upside of 36% from the current levels

Polaris Q3FY11: Healthy revenues, buy
During the quarter, Polaris registered healthy revenue performance as
income from software dev and BPM increased by over 18% to Rs400 cr
(Q3FY11) as

against Rs339 cr (Q3FY10). In dollar terms, the revenue grew by 23%
y-o-y to $89 Mn from $73 Mn. Under the software dev division, overseas
revenue (which

constitutes around 90% of the segments) rose by 16.6% to 352 cr while
the domestic revenue shot up by 44% to Rs43 cr. At CMP of Rs 177, the
stock is

trading at 8.7 times and 7.8 times its FY11E and FY12E EPS which is is
attractive. Investors are recommended to buy the stock for a price
target of Rs228

Polaris Software Q3FY11: Strong performance, buy
Polaris reported stronger than expected quarter. The company reported
top-line growth of 3% to Rs4 bn and growth of 6.6% q-o-q in USD terms.
The strong growth is driven by services business that grew by 6.7%
q-o-q. The stock is currently trading at 7.4 times FY12e earnings,
steep discount to peers. Investors are recommended to buy the stock

Power Grid Corp: Near monopoly in interstate power transmission
The stock is currently trading at 2 multiples below the industry
average PE of 22. With key financial indicators registering impressive
growth year after

year, the author thinks that the company will deliver good financial
performance in future due to its near monopoly in the inter-state
power transmission,

prudent financial management, impressive capex plans, strong balance
sheet and good future prospects for the power sector

Rallis India Q3FY11: Strong profitability, buy
Rallis India continued to register strong topline growth with Net
sales increasing by 32% y-o-y to Rs 268.1 crores. Topline growth was
primarily driven by robust pesticide demand on the domestic front
during rabi season & improved performance in the exports markets.
Despite un-seasonal rains, Rallis posted strong performance by
leveraging on its strong marketing & distribution channel. The company
continues to further enhance its relationship with farmers through its
various awareness programmes and strong product offerings. Rallis is
expected to maintain innovation turnover index above 25% going forward
with strong performance of Ergon & Tarak and new product launches in
FY12. KR Choksey maintains a positive outlook on the company and
recommends investors to buy the stock for a price target of Rs1625
implying an upside of 21% from CMP of Rs1340

SAIL: Disappointing results, outlook positive
SAIL recorded a flat growth in bottomline with PAT was Rs 1,177 crs up
2% q-o-q well below street estimates. Although volumes were better
than expected,

lower realizations and higher costs led to lower profits. KR Choksey
values the base business at 6 times its FY12E EV/EBITDA, in line with
industry

average and believes that the street has already factored the result
disappointment with the stock shedding around 10% in 2 weeks time.
Although the

proposed FPO in February remains a technical overhang near term due to
increased float and floods in Australia pose a threat to coal supply
and resultant

surge in raw material cost, the long-term prospects for SAIL remain
strong on the back of surging steel demand and expected hike in steel
prices.

Investors are recommended to buy the stock for a price target of Rs203
implying an upside of 22% from the CMP of Rs165.70

Shree Cement Q3FY11: Results in-line, buy
The current quarter result for Shree Cement Ltd. (SCL) was in line
with expectations ¨C Net sales de-grew by 10% y-o-y to Rs7796mn,
EBIDTA halved to

Rs1575mn and net profit came down by 84% y-o-y to Rs275mn.
Accordingly, Jaypee has cut the earnings projections for the company
for FY11E by 30% to

Rs49.6/share and for FY12E by 46% to Rs94.7/share,giving effect for
Q3FY11 result. However, it remains positive on the company given its
sound balance

sheet and fundamentals and recommends investors to buy the stock for a
price target of Rs2093 (CMP Rs1685).

Shriram Transport: Strong quarter, buy
Shriram Transport Finance Co. Ltd (STFC) showed strong performance in
the Q3FY11 results. The NIM on AUM was at 8.91%, on the back of higher

securitization income, which grew by >3.2x y-o-y. STFC made a
securitization of Rs15.6 bn during Q3FY11. AUM of the firm increased
by Rs56 bn to ~Rs.338

bn. Sequentially, the growth in new CV & the old CV financing was ~16%
& ~10% respectively. At CMP of Rs675, the stock is trading at a P/ABV
of 2.52 times

its FY12E. Investors are recommended to buy the stock for a price
target of Rs878

Siemens Q1FY11: Revenue up 36% at Rs24 bn, buy
In Q1FY11 (year ending September) Siemens India reported revenue of
Rs24 bn (up 36% y-o-y) which was ahead of estimates of Rs23 bn.
Motilal Oswal

maintains a buy rating on the stock with a price target of Rs907

Sintex Industries: Buy for a target of Rs183
SIL's net sales increased by 41.7% to Rs11838.4 mn (y-o-y) on the back
of robust performance by both textile & plastic segment. The company's
operating

profit grew by 69.8% to Rs1945.4 mn, while the OPM improved by 272 bps
y-o-y to 16.4%. At CMP of Rs155, SIL is trading at 10.2 times FY11E &
8.5 times

FY12E EPS


Solar Industries: Buy for a target of Rs665
Net sales increased by 14.1% y-o-y and 10.5% q-o-q to Rs166.2 cr.
Exports increased by about 63% y-o-y and 20% q-o-q to Rs30 cr. SIIL
reported a PAT of

Rs19.6 cr, up 20.9% y-o-y and 14.6% q-o-q. SIIL has a strong market
position, good operating efficiencies and strong balance sheet. At the
CMP of

Rs569.65, SIIL is quoting at 12 times FY12E EPS of Rs47.5. Investors
are recommended to buy the stock

SRF: Robust revenue growth of 72% y-o-y, buy
SRF reported robust revenue growth of 72.2% y-o-y at Rs844.12 cr in
Q3FY11 over Rs490.07 cr of Q3FY10; mainly aided by an improvement in
all business

activities especially that in packaging films business. Sequentially
the revenues increased by 12.8%. Latin Manharlal Sec maintains a buy
rating on the

stock with a price target of Rs509 over the next 12 months

State Bank of India: Q3 margins up by 18 bps to 3.6% , hold
State bank of India posted a strong growth in its net interest income
(NII;43.3% y-o-y and 11.5% q-o-q for Q3FY11. Margins surprisingly went
up by another

18 basis points q-o-q to 3.6% aided by an increase in the loan yields
(to 9.58% from 9.5% in Q2FY11), higher credit deposit (C/D) ratio and
a robust CASA

ratio.


Sterlite Ind Q3FY11: Results in line, buy
Sterlite Industries reported results broadly in line with Prabhudas
Lilladher's expectation. Disappointing performance in the copper and
power segments

got compensated by outperformance in Zinc business. Prabhudas
Lilladher recommends accumulate on the stock for target of Rs189


Sun Pharma: Moderate Q3FY11, maintain neutral
Revenue growth was strong across segments – India (up 19% y-o-y) and
Taro (up 23% y-o-y) were the key contributors, while Caraco revenues
fell 22% y-o-y,

owing to absence of exclusivity products. Margin fall of 857 bps was
sharper than expected due to Higher staff costs at Taro and inventory
charge backs

for Pantoprazole. Higher tax rate, led by one time tax provisions of
$13 mn at Taro, and depreciation costs led to a muted 3% y-o-y PAT
growth, despite an

~2x rise in other income. Jaypee remains positive on SUNP from a long
term perspective, given its strong balance sheet, healthy return
ratios, best in

class margins, a steady domestic business and robust international business

Sun Pharma Q3FY11: Revenues up 57% y-o-y, neutral
Revenues at Rs 16 bn (up 57% y-o-y) was above estimates, buoyed by
strong revenue growth at Taro. Taro maintained its quarterly average
of $102 mn, thus

contributing almost 30% of consolidated revenues. Operating margins
plummeted by 857 bps y-o-y possibly driven by higher operating
expenses at Taro.

(Taro's margins at 20% v/s SUNP's margins of 30%+). Further, employee
expenses were also unreasonably high at 17% of revenues (average of 9
]11%). The

stock is expected to witness selling pressure in the near term and
hence investors are recommended to maintain neutral

Supreme Infra: Buy for a target of Rs340
Recently SIIL secured a prestigious work order from National Highway
Authority of India (NHAI) for the work of Panvel-Indapur section of
NH-17 from Km

00.00 to Km 84.00 for its four laning in the state of Maharashtra
under NHDP phase III on BOT basis. With the new order, the total order
book of the

company stands at over Rs27500 mn and is to be executed in and around
24-30 months. Backed by the strong order book position, superior
operating margins

accredited to its backward integrated strategy and its extensive
experience as an EPC contractor; SIIL offers healthy upside potential
in the medium to

long term. Investors are recommended to buy the stock for a price
target of Rs340 (CMP Rs225)

Sun TV Q3FY11: Ad revenues up 16%, accumulate
Sun TV reported 16% y-o-y growth in ad revenues to Rs2.6bn, driven
primarily by the 12 ]13% blended ad rate hikes taken in Q4FY10. The
implied volume

growth was muted at 3 ]4%. The growth has come off a high base of
Rs2.25bn in Q3FY10 (up 44% y-o-y). Investors are recommended to
accumulate the stock for

a price target of Rs544 (CMP Rs485)


Tata Comm Q3FY11: Neotel losses continue to grow, sell
TCom's consolidated revenue for 3QFY11 increased 9% y-o-y to Rs30.1
bn. Sequentially the revenues increased by 1.9%. Neotel losses
stabilized from Rs491mn

in 2QFY11 to `503 mn in 3QFY11. The company expects operations of
Neotel to turn EBITDA positive by FY11 and PAT positive by FY12. This
in turn will

result in improving the margins for the Tata Communications as some
margin erosion for the company was attributed to the Neotel
operations. However the

stretched balance sheet continue to depress earnings, acting as
negative catalysts for the stock. Asit C Mehta maintains its sell
recommendation on the

stock

Tata Sponge Q3FY11: PAT up 9% y-o-y, hold
During the quarter, Tata Sponge Iron Ltd (TSIL) reported revenue
growth of 31% to Rs1704 mn y-o-y on account of improvement in sponge
iron realization.

EBITDA Margin declined by 600 bps to 22% y-o-y due to higher raw
material cost. PAT improved by 9% to Rs222 million y-o-y. At CMP of
Rs348, the stock is

trading at PE multiple of 6.3 times and 5.7 times its FY11E and FY12E
earnings respectively. Investors are recommended to hold the stock for
a price

target of Rs364


Tata Motors DVR: Strong buy for long term investors
Tata Motors was the first company to issue shares with DVR in India.
Internationally DVRs trade at a 10% discount to the underlying shares.
The market for

DVRs in India is not yet mature. With an assumption of a 20% discount
(on the DCF based price target) on Tata Motors, the price target
arrived at for

it's DVR is Rs1593. The author recommends a strong buy for the
long term investors only


Thermax Q3FY11: Margins flat at 12%, maintain neutral
Q3FY11 EBITDA margins was 11.8% (flat y-o-y) as material costs rose by
480bp y-o-y to 68% while other expenditure dropped 280bp y-o-y to
10.7%. Motilal

Oswal maintains neutral rating on the stock

TRF Q3FY11: PAT margin 6.9%, accumulate
TRF Ltd consolidated sales decreased by 12% y-o-y to Rs2484.1 mn as to
NTPC projects are expected to reach threshold limit in Q4 FY11. The
company

registered consolidated OPM of 10.6 % and PAT margins of 6.9%. Current
order backlog stands at Rs18 bn. At CMP of Rs499, the stock is trading
at a P/E

multiple of 9.5 times its FY12E earnings and 8.8 times its FY13E
earnings. A P/E of 10 times is assigned to its FY13E earnings of
Rs56.9 and investors are

recommended to accumulate the stock for a price target of Rs569

TVS Motors Q3FY11: Net profit up 136% y-o-y, buy
TVS's Q3FY11 numbers were in-line with expectations. Net sales
increased by 50% y-o-y to Rs16134 mn, on a 40% y-o-y growth in volumes
and an 8% y-o-y growth in realizations. Net profits were up 136% y-o-y
to Rs558 mn on a low base driven by higher other income and lower
interest expenses. Lower interest expenses were driven by repayment of
debt of ~2bn during the quarter. However EBITDA margins were down by
50 bps yoy and 40 bps qoq at 7.3% due to hike in input costs. Going
forward, the company is expected to end the year with volumes of 2.01
mn. The two new launches in the form of variants of Apache and Star
City in FY12 and the continued success of the existing models and
recent launches Jive and Wego would lead to a better volume
performance in FY12 at 2.4mn. Based on an EV/EBITDA multiple of 5.5
times on FY13E EBITDA, the stock is valued at Rs86 per share implying
an upside of 39% from the CMP of Rs62. Investors are recommended to
buy the stock



Union Bank of India: Strong NII growth of 48.3% y-o-y, buy
Union Bank of India reported Q3FY11 PAT of Rs5.8 bn, down 8.5% y-o-y
and 91.0% q-o-q, largely in line with expectations. Net Interest
Income (NII) for the

quarter grew strongly by 48.3% y-o-y and 5.2% q-o-q to Rs16.2 bn on
account of healthy 25.6% y-o-y and 5.8% q-o-q advances growth coupled
with a 9bps

q-o-q improvement in the reported NIM to 3.44%. Prabhudas Lilladher
maintains buy rating on the stock for a price target of Rs425,
implying an upside of

26.1%

United Phosphorus Q3FY11: Healthy volume growth at 15%, buy
The volume growth during the quarter was healthy at 15% y-o-y;
however, the consolidated income grew at a slower pace of 7.8% y-o-y
to Rs1248.4 cr due to

adverse exchange movements (-5% y-o-y) and negative price impact (-3%
y-o-y). Sharekhan maintains buy rationg on the stock for a target of
Rs218

Uflex: Strong set of numbers for Q3, buy
Indiaapos;s largest flexible packaging company Uflex reported strong
set of numbers again for Q3FY11 which was largely in line with the
street estimates.

Consolidated net sales for the Q3FY11 increased by 77.1% y-o-y to
Rs998.28 cr; sequentially up by 18%. Latin Manharlal Sec maintains buy
on the stock with

a 12-18 months price target of Rs310

Usha Martin: 31% upside, buy
At CMP Rs62, the stock is trading at a P/E of 5.3 times and EV/EBIDTA
of 3.9 times based on FY12E. The volumes are set to more than double
over the next 2

years while increased raw material integration adds further value.
Indiainfoline maintains a buy recommendation on the stock with a
revised 9 month target

of Rs81, an upside of 31% from current levels

Usha Martin: One off events deter operations, accumulate
Usha Martin Ltd. has declared results for 3QFY11. The current quarter
results were adversely affected by breakdown of 30 MW captive power
plant, lower

availability of power from external sources, increase in
transportation cost and non availability of trucks for transfer of
coal. As company continues to

be marred by one or other operational issues, Asit C Mehta is a bit
cautious on management ability to deliver on its promises. Therefore,
EPS estimate for

FY12 is lowered from Rs12.4 to Rs9.4 and recommendation is reduced
from buy to accumulate. Also target price is reduced from Rs99 to Rs65
(CMP Rs55)


Vinati Organics Q3FY11: Robust growth in sales, buy
Vinati Organics Limited (VOL) reported sales of Rs 86 cr, as compared
to Rs 58 cr in Q3FY10, registering an impressive growth of 49.1% yoy.
ATBS was the

major growth driver. The demand is expected to remain strong. The
company has started getting the benefit of backward integration
exercise, which it took

last quarter. EBITDA margins improved q-o-q/y-o-y by 190bps/100bps to
23%. At CMP of Rs76, the stock is trading a PE multiple of 8.3 times
its FY11 & 6.1

times its FY12 earnings. Investors are recommended to buy the stock
for a price target of Rs100, with a long term view

Whirlpool: Pooling profitability
The valuation of this stock is attractive considering the robust
demand in the consumer durables industry. Whirlpool has robust growth
plans and has shown revenue growth of around 30.8% in FY0910, whereas
its competitor IFB has clocked revenue growth of 22.7%. Both the
stocks are attractive investments if one's looking at building a
portfolio in the consumer goods industry and would be suitable
medium-term picks for "Pooling Profits"

Wipro Q3FY11: Weakest volume growth among peers
Wipro reported weakest volume growth with positive bias on
realization. IT service revenue growth of 5.6% in USD terms was the
lowest among Tier-1 (Infosys:5.9% TCS:7.0%: and HCLT:7.5% q-o-q).
Prabhudas Lilladher believes the lacklustre performance of Wipro
compared to Tier-1 peers could weigh down on the stock, yielding
continued underperformance. Investors are recommended to accumulate
the stock

Wipro Q3FY11: Net sales up 12%, buy
Wipro Ltd reported a marginal rise in consolidated net profit for the
quarter ended Dec10. During the quarter, the profit of the company
rose 8.33% to

Rs13188 mn from Rs12174.00 mn in the same quarter previous year. Net
sales for the quarter rose 12.44% to Rs78293 mn, while total income
for the quarter

rose 13.44% to Rs 80044 mn, when compared with the prior year period.
Company has seen a positive demand environment which has driven broad
based

sequential growth across all their verticals, service lines and
geographies. Investors are recommended to buy the stock for a price
target of Rs495 (CMP

Rs430)

Wipro Q3FY11: Mediocre show, maintain neutral
Wipro has again produced lackluster results in Q3FY11, when its
competitors in the large cap space have excelled on growth as well as
margin fronts. IT

Services revenues just touched the upper end of the modest quarterly
guidance, mostly on pricing uptick. Utilization and attrition remained
dismal.

Verticals like healthcare vertical, Product Engineering and BPO havent
performed well as compared to peers, suggesting that Wipro might be
losing clients

in these areas to competitors. At CMP of Rs456, the company is trading
at 24.32 times its FY10 EPS and 21.57 times its FY11E EPS. Investors
are

recommended to maintain neutral on the stock for a price target of Rs480

Wipro Q3FY11: Volume up 1.5%, pricing muted
Wipro revenue grew by 0.6% q-o-q to Rs78.2 bn. The volume grew 1.4%
q-o-q whereas pricing declined 0.2% q-o-q. The result is below of
Prabhudas Lilladher's and street expectation and guidance is also
lack lusture in comparison to to TCS and HCL Tech. Prabhudas Lilladher
reiterates Accumulate rating with a target price of Rs480

Yes Bank: Robust growth in Q3 earnings, buy
Yes Bank has continued to post a robust growth in earnings in Q3FY11
driven by a strong asset growth and focus on non interest income.
Sharekhan maintains Buy rating on the stock with a target price of
Rs415