Stock picks for November 21, 2012

Jaiprakash Associates:

Sudarshan Sukhani of s2analytics.com advice traders to buy Jaiprakash Associates at lower levels.

Sukhani told CNBC-TV18, "I see Jaiprakash Associates stabilize somewhere around Rs 80, which means there is much more downside left. Once the stock starts giving signs of distribution then the sense are that there is an imminent large deep correction coming, which is what seems to be happening with JP now."

SKS Microfinance:

Ambareesh Baliga, Market Expert advice traders to buy SKS Microfinance at current levels as it may test Rs 180-190 very soon.

Baliga told CNBC-TV18, "I have been positive on SKS Microfinance ever since it fell below those Rs 100 levels closer to Rs 65 I had given a buy call saying that the business model of SKS is changing and for the microfinance sector overall and with the passing of the Microfinance Bill which should happen hopefully this time if not now in the next session, because I do not think there is too much of opposition to that."

Wockhardt:

FinQuest Securities is bullish on Wockhardt and has recommended buy rating on the stock with a target of Rs 2268 in its November 20, 2012 research report.

"Wockhardt, Q2FY13 revenue came in at Rs 13.47 bn, in line with our estimate of Rs 13.55 bn. But divestment of lower margin nutrition business and favorable stock adjustments during the quarter helped margin expansion. EBIDTA came in at Rs 5.17 bn, 15% ahead of our estimate of Rs 4.51 bn. The adjusted PAT (pre exceptional) grew 3% Q-o-Q to Rs 4.13 bn. Considering buoyant performance during 1HFY13, we revise upward our revenue estimates for FY13 and FY14 by 3%. Consequently due to improved margins and profitability during 1HFY13 caused by hiveoff of lower margin nutrition business we revise upward our EPS estimate for FY13 and FY14 by 28% and 8% respectively. Perhaps now post the hive-off of nutrition business, the buoyant EBIDTA margin appears sustainable. We maintain our strong BUY rating on WPL with a target upgrade to Rs.2,268 on a one year time horizon valuing it at a P/E multiple of 18x to its FY14 earnings."

HDFC:

IIFL is bullish on Housing Development Finance Corporation (HDFC) and has recommended buy rating on the stock with a target of Rs 790 in its November 20, 2012 research report.

"HDFC is currently into the consolidation zone after prices peaked out at Rs800 last week. However as stock is into structural bull market, it is expected to form base near the support of its 50‐DMA following recent decline. Historically, the stock has bounced back from the 50‐DMA on multiple occasions in last five months. In coming days we expect stock to post smart recovery and head back towards Rs795. (Duration 6 days)," says IIFL research report.

Kirloskar Brothers:

Way2Wealth is bullish on Kirloskar Brothers and has recommended buy rating on the stock in its November 20, 2012 research report.

"Kirloskar Brothers Limited (KBL), a multinational Indian company, incorporated in 1920 with over 123 years of engineering expertise in Fluid Management Systems, is one of the largest pump manufacturing and exporting company in India with focused areas in Irrigation, Water Resource Management, Building and Construction, Industry, Power, Gas, Oil and Defense."

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