Firstcall Research has a buy on Ahmedanagar Forgings and with a target price of Rs 116.
Firstcall believes that at the current market price the stock P/E ratio is at 2.86 x FY13E and 2.65 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.36.88 and Rs.39.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 10% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.83 x for FY13E and 2.62 x for FY14E. Price to Book Value of the stock is expected to be at 0.44 x and 0.38 x respectively for FY13E and FY14E.
"We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 116 for Medium to Long term investment," says Firstcall Research report.
Mahindra and Mahindra
ICICIdirect.com is bullish on Mahindra & Mahindra (M&M) and has put a buy rating on the stock with a target price of Rs 1186. The firm believes that Mahindra & Mahindra has entered into a multi-structured deal with Spain's CIE Automotive, which involves sale of stake in 3 entities of the Systech Automotive components division to CIE Automotives and then subsequent merger of the entities along with CIE Automotive's forging businesses in Spain and Lithuania into Mahindra Forgings, which will be renamed to Mahindra CIE.
"We maintain BUY recommendation on the stock with a SOTP price of Rs 1186, ascribing a 7.5x FY15E EV/EBIDTA multiple for core business," says ICICIdirect.com research report," ICICI Direct has stated in its research report.