Electrosteel Casting Limited
Recommendation: Buy
CMP: Rs 382.45
Target Price: Rs 465
- Electrosteel Casting Limited is an integrated water infrastructure player providing end-to-end solutions in water supply and sewerage application systems.
- The company has been growing at a CAGR of 24 per cent over the FY2002-05 period with exports contributing almost 20 per cent to sales. On the back of robust demand, the company’s sales and PAT are estimated to grow at a CAGR 24 per cent and 42 per cent respectively , over the FY2006-08 period.
- At the current market price, it is trading at a P/E of 5.8x FY2008E EPS of Rs 62.
Lupin Limited
Recommendation: Buy
CMP: Rs 865.40
Target Price: Rs 1,130
- Lupin Limited is one of the world’s largest manufacturers of drugs that combat tuberculosis, bacterial infections and cardiovascular disease. The company has a vast reach in the domestic formulation segment.
- It is now focusing on high growth lifestyle segments and with aggressive new launches in FY2006 we expect the revenues from the domestic formulations segment to increase by 33 per cent from Rs 455 crore in FY2005 to Rs 608 crore in FY2006.
United Phosphorus Limited
Recommendation: Buy
CMP: Rs 272
TARGET PRICE: Under Review
- United Phosphorus Limited is the largest producer in India of crop protection products. Its product range includes fumigants, fungicides, insecticides, rodenticides and herbicides.
- It ranks fourth amongst the generic agrochemical companies in the world. In Q3FY06, on a year-on-year basis the company has reported 26.3 per cent and 53.8 per cent growth in revenues and net profit, respectively .
- I expect the company to further improve its performance, led by a combination of fresh registrations and inorganic initiatives.
