Dr Reddys Labs:
Prabhudas Lilladher is bullish on Dr Reddys Labs and has recommended buy rating on the stock with a target of Rs 2038 in its October 30, 2012 research reports.
"DRRD's Q2FY13 result was significantly above our estimates led by strong growth in US generics and PSAI business. The company reported strong improvement in profitability led by benefit of operating leverage. The company is expected to continue to report strong performance, going forward, led by all-round growth. At the current price, the stock trades at 17.3x FY13E and 15.1x FY14E earnings. We maintain ‘BUY' with target price of Rs2,038."
Prabhudas Lilladher is bullish on Shriram Transport Finance Corporation and has recommended accumulate rating on the stock with a target of Rs 650 in its October 30, 2012 research reports.
"SHTF's Q2FY13 PAT of Rs3.4bn was in line with expectations, with relatively stable asset quality and better-than-expected pick up in used/new CV disbursements. Operating performance seems to be stabilising now, with stable margins and credit costs. Though growth has surprised and valuations at 1.6x FY14 book is reasonable considering SHTF's used CV book facing lower competitive intensity, we are not as sanguine as the management on the CV cycle and there is a possible impact from impending regulations and hence, maintain our ‘Accumulate' rating with a PT of Rs650/share."
FinQuest Securities is bullish on Persistent Systems (PSL) and has recommended buy rating on the stock with a target of Rs 650 in its October 30, 2012 research report.
"PSL delivered a stellar set of number for Q2FY13. Revenue rose by 9.4% sequentially to $60.05mn while EBITDA margin remained flat at 27.3% in spite of an offshore wage hike of 9.9% during the quarter. Strong IP revenue growth, higher utilization and operating efficiencies absorbed the impact of wage hike in the quarter. Net profit grew by 7.4% sequentially to Rs 446mn."
Aditya Birla Money is bullish on Firstsource Solutions (FSL) and has recommended buy rating on the stock with a target price of Rs 14.53 in its October 29, 2012 research report.
"Firstsource Solutions (FSL) posted a healthy revenue growth of 6.3% to Rs 7176.3 mn from Rs 6751.7 mn and grew by 34.6% on YoY basis (for the quarter Q2FY13). Despite strong headwinds in BFSI & healthcare provider segment, the revenue has grown by 5.4% on constant currency terms (QoQ). Telecom vertical continued to see strong tractions (12.2% on QoQ basis) and led the growth engine, followed by BFSI (4.1%) On geographical basis, UK (13.4%) & India (14%) led the show. Post last year's $160 mn deal, FSL's client mining has improved significantly, which continued to grow at rapid pace (Top client (25.6%) and Top 5 clients (13.1%) on QoQ basis.
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