Stock tips for Nov 2, 2012

Bharat Forge:

Dolat Capital is bullish on Bharat Forge and has recommended accumulate rating on the stock with a target of Rs 310 in its October 31, 2012 research report.

"While the domestic operations were down 16% YoY to Rs 4.0bn, its exports grew 8% to Rs 4.7bn, partially benefitting from better realization. Domestic revenues were down due to sluggish automotive demand and a significant drop in sale to industrial sectors in India."

Jagran Prakashan:

Angel Broking is bullish on Jagran Prakashan and has recommended buy rating on the stock with a target of Rs 117 in its October 30, 2012 research report.

"Jagran Prakashan (JPL) reported a robust 51.7% yoy growth in net profit to Rs69cr aided by tax benefit due to accumulated losses at Nai Dunia for 2QFY2013. On the operating front, JPL posted a 162bp yoy contraction in its OPM to 24.3% primarily on account of 146bp yoy increase in staff cost (partly due to salary increment in the quarter)."

Mahindra Satyam:

Angel Broking is bullish on Mahindra Satyam and has recommended accumulate rating on the stock with a target of Rs 115 in its October 30, 2012 research report.

"Mahindra Satyam (Satyam) reported broadly in-line set of results for 2QFY2013, with robust operational performance. The major highlight of the result was almost flat qoq operating margin despite giving wage hikes during the quarter. Satyam has successfully addressed its key concern areas in the past three years of client mining, employee retention, margin expansion, and dispute resolution. The company is back on its growth track after three years of metamorphosis undertaken by Tech Mahindra's management post its acquisition in June 2009."

Grasim Industries:

Motilal Oswal is bullish on Grasim Industries and has recommended buy rating on the stock with a target of Rs 3785 in its October 30, 2012 research report.

"Grasim Industries' standalone EBITDA for 2QFY13 was in line with our estimate at INR2.9b. Higher than expected VSF volume was offset by higher cost. However, lower tax boosted reported PAT to INR3.8b (v/s our estimate of INR3.6b).  Standalone net sales grew 9.6% YoY and 7.7% QoQ to INR13.3b (v/s our estimate of INR11.7b). EBITDA declined 5.3% YoY and 1.8% QoQ to INR2.9b (v/s our estimate of INR2.85b). EBITDA margin contracted 340bp YoY and 210bp QoQ to 21.7% (v/s our estimate of 24.3%). PAT grew 11% YoY and 40% QoQ to INR3.8b (v/s our estimate of INR3.6b), led by higher other income."

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