Angel Broking has recommended buying the stock of NCC with a target of Rs 44.
"For FY2013 the company has given a guidance of 15-20% growth on the revenue front and is hopeful of maintaining the EBITDAM at 8-9%. However based on 9MFY2013 performance we believe it will not achieve its revenue guidance. NCC's captive power plant is expected to contribute ~Rs360cr to FY2013 revenues. Further, NCC reduced its debt by Rs100cr during the quarter to Rs2,522cr and is in process of reducing its debt to below Rs2,000cr through stake sale in one of its road BOT project, continued monetization of its land bank, and stake sale in the Himachal Sorang project. The stock currently trades at a PE of 6x and 4.5x (excluding subsidiaries' valuation) our FY2013 and FY2014 EPS estimates. Further, on account of the stake sale initiated by the company in some of its projects and decline in its stock price, we upgrade our recommendation on the stock to Accumulate," says Angel Broking research report.
Tribhovandas Bhimji Zaveri
Dolat Capital has recommended buying the stock Tribhoovandas with a target of Rs 300.
"On the back of aggressive expansion plan, we estimate revenue CAGR of 37% and PAT CAGR of 43% during FY12-15E. We have revised out estimate to factor in the impact of increase in interest rate. We have downgraded our earnings estimate by 8-9% for FY14E and FY15E. Our revised EPS estimate for FY14E and FY15E stand at Rs 17.2 and Rs 25.2. While the long term story of shift towards large brand jewelers remains impact there is an overhang on the stock on account of recent initiatives from government to curtail gold import. Any regulations to impact the gold demand is a key risk. At a CMP of Rs 204, the stock trades at 12x FY14E and 8x FY15E. We maintain BUY and reduce our price target to Rs 300 (12x FY15E EPS)," says Dolat Capital research report.