Stock tips for Dec 27, 2012

Commentary

oi-Sneha

By Sneha B K

Published: Thursday, December 27, 2012, 8:43 [IST]

Here are a few stock ideas keeping a medium to long term perspective in mind.

Karnataka Bank:

Rajesh Agarwal, Eastern Financiers is of the view that one should buy Karnataka Bank for a target of Rs 225 for one year down the line.

Agarwal told CNBC-TV18, "One should continue holding on Karnataka Bank and we have a buy call on this. If you get it around Rs 160 buy the stock for a target of Rs 225 for one year down the line. Valuation wise, even after the current run up it is trading at a huge discount, PE of around 10, price to book value of 1.1. With 550 branches by FY13, trading at a market cap of around Rs 3,000 crore- per branch it comes to around Rs 550 crore that is highly lucrative, so one should buy this."

Lanco Infra:

Rajesh Agarwal, Eastern Financiers is of the view that one can hold Lanco Infratech with a target of Rs 17-18.

Agarwal told CNBC-TV18, "One should continue to hold Lanco Infratech because we feel that, one year down the line when things are in a better shape, the interest cost go down because of the management concerns of management steps of taking the stake sale and all, it can touch levels of Rs 17-18. The poor sets of numbers were just because of huge debt but they have a huge power capacity of around 9225 megawatt out of which 4367 megawatt is already operational. Even last week they got a positive response from Australian Supreme Court regarding their Griffin subsidiary, things are trying to turn around but it will take some time, maybe one year down the line the stock can touch Rs 16-17, hold on to the stock."

Motherson Sumi:

Firstcall Research is bullish on Motherson Sumi and has recommended buy rating on the stock with a target of Rs 227 in its December 24, 2012 research report.

"The flagship company of the Samvardhana Motherson Group, Motherson Sumi Systems Limited (MSSL) is a joint venture between Samvardhana Motherson Finance Limited, India and Sumitomo Wiring Systems, Ltd., Japan. Motherson Sumi Systems (MSSL) is engaged in manufacturing a range of products from single circuit lead wire to complex cabin harnesses and from small harnesses to harnesses for large cranes and elevators. Incorporated in 1986.

Fortis Healthcare:

Rajesh Agarwal, Eastern Financiers is of the view that one can hold Fortis Healthcare with a target of Rs 150 in the next 9 to 12 months.

Agarwal told CNBC-TV18, " Fortis Healthcare belongs to healthcare segment and hospital segment as such. It is one of the largest player in this country. The kind of medical insurance growth in our country and the kind of medical tourist coming in from neighbouring country like Bangladesh and all, we believe that hospital sector as such has got huge opportunities going forward. If one is ready to hold these kind of stocks at least three to four years down the line."

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