Angel Broking is bullish on Wipro and has recommended buy rating on the stock with a target price of Rs 421 in its November 2, 2012 research report.
"Wipro's results came in largely in line with our estimates (For 2QFY2013). The IT services USD revenue growth came in at 1.7% qoq. One key negative thing was the tepid volume growth of 0.2% qoq (way below other peer companies), but on the positive side the company has been able to maintain its pricing as against peer companies and also despite giving wage hikes, the decline in EBIT margin of IT services was much less than expected (31bp qoq). For 3QFY2013, the management has given a USD revenue guidance of US$1,560mn-1,590mn, which translates into a qoq growth of 1.1-3.1%.
Buy Tata Steel at Rs 375-380, says Sudarshan Sukhani of s2analytics.com.
Sukhani told CNBC-TV18, "Tata Steel is still a better buy than most of the metal stocks. In fact at Rs 425 it was poised for a big move that didn't come about and the sense was that the results will decide whether it is going to break out or not. Well apparently it is not going to breakout but I don't see Tata Steel as a short selling candidate. At lower levels Rs 375-380 it gets very strong support. So that should be buying for Tata Steel not selling at those levels, let it come there."
Angel Broking is bullish on Bharat Forge (BHFC) and has recommended buy rating on the stock with a target price of Rs 324 in its November 2, 2012 research report.
"BHFC posted lower-than-expected results for 2QFY2013 led by weakness in the domestic as well as export markets which resulted in a volume decline of 13.8% yoy (9.3% qoq). As a result, the standalone revenue posted a decline of 4.7% yoy (7.3% qoq) to Rs 868cr. The net average realization however, registered a strong growth of 12.1% yoy (2.9% qoq) benefiting from higher share of machining component and better realization on exports on account of weak INR. The weak demand sentiment in the export markets primarily, Europe, led to a sluggish growth in exports revenue (up 8.1% yoy) during the quarter. The non-auto segment too posted a marginal growth of 2.6% yoy led by weakness in the domestic markets. On the operating front, margins declined 162bp yoy (271bp qoq) to 22.4% which was lower than estimated owing to a sharp increase in manufacturing and other expenses. Hence the operating profit and net profit registered a decline of 11.1% (17.3% qoq) and 13.3% yoy (12.4% qoq) respectively.
LIC Housing Finance:
Angel Broking is bullish on LIC Housing Finance (LICHF) and has recommended buy rating on the stock with a target price of Rs 298 in its November 2, 2012 research report.
"LICHF posted a slightly below estimate numbers with net profit growing by 147.0% yoy (on a low base due to standard asset provisioning on individual loans in 2QFY2012) to Rs 243cr (For 2QFY2013). The NII disappointed growing by a moderate 4.5% yoy but lower provisioning expenses aided bottom-line. We recommend a Buy rating on the stock. For 2QFY2013, LICHF's loan book grew strongly by 23.2% yoy (5.3% qoq) to Rs 69,119cr. Loan growth was driven by loans to the individual segment, which grew by 27.4% yoy to Rs 66,458cr, while loans to the developer segment declined by 33.1% yoy to Rs 2,660cr. The proportion of developer loans to overall loans dipped further from 4.6% in 1QFY2013 to 3.8% for 2QFY2013. The margins were down 35bp yoy, primarily on account of lower share of higher yielding developer loans (3.8% in 2QFY2013 compared to 7.1% in 2QFY2012).
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