Recommendation: BUY
CMP: Rs 591.70
Target Price: Rs 640
- ACC Limited is India's foremost manufacturer of cement and concrete. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes.
- It has reported a strong performance in Q3FY06. Its sales for the quarter were as per expectations and rose by 12 per cent on a year-on-year basis to Rs 1,072 crore.
- At the current price levels, it is trading at 15.8x CY2007E EPS.
Recommendation: ACCUMULATE
CMP: Rs 1,174.10
Target Price: Under Review
- Dr. Reddy’s Laboratories Ltd., was set up in 1984 and is considered as one of the pioneers of the pharmaceutical industry in India. Today the company manufactures and markets API (Bulk Actives), Finished Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising Drug Discovery Pipeline.
- The company’s Q3FY06 results were better than our expectations. On a year-on-year basis, sales increased by 25.4 per cent, operating margin by 152 per cent and net profit by 1,470 per cent.
- The robust operating margin growth was due to overall performance of the company in all the segments and lower R&D costs.
SIEMENS INDIA LIMITED
Recommendation: BUY
CMP: Rs 4,395.95
Target Price: Rs 4,700
- Siemens India Ltd. is a unique player in the field of electrical and electronics engineering. It has presence in sectors such as energy, transportation, healthcare and communication amongst others.
- During Q1FY06 it has reported a 62 per cent growth and 69 per cent growth on a year-on-year basis in sales (Rs 860 crore) and net profit (Rs 53.1 crore). Going forward, a healthy order backlog offers the company medium term visibility.
- At the current price levels, the stock is trading at 28x FY06E EPS of Rs160.
