Power Finance Corporation
GEPL Capital has recommended buying the stock of Power Finance Corporation
"At CMP of Rs 137.95 the stock is trading at 0.68x & 0.60x it's FY14E & FY15E Book Value per share which we believe is attractive. We attach an exit P/BV multiple of 0.7x it's FY15E Book Value of Rs 231.29 per share. Based on our valuation we arrive at the target price of Rs 162 with a buy rating & a potential upside of 18 percent," says GEPL Capital research report.
The firm feels that the advantages the company has our sustainable NIMs and stable asset quality.
R S Software
Sunidhi Securities is bullish on R S Software.
"Capitalizing on its core strength, RSSIL has defined its business strategy to work with the major stakeholders in the payments industry globally, and bring the best value to its customers. The cornerstone of RSSIL's value proposition is its understanding of the payment transaction's entire life cycle and a unique methodology customized for managing software applications for the electronic payment industry in the areas of development, maintenance, migration and support," the firm has stated.
RSSIL is building a robust global sales engine that complements the high priority accorded to the company's dominant customers and leveraging at the same time unusual growth potential. Longer term operational and strategic planning is being put in place.
"At the CMP of Rs 116, the share is trading at a P/E of 3.5x on FY14E and 3.1x on FY15E. We recommend BUY with a revised upward target price of Rs 165 (at a P/E of about 5.0x on FY14E) in the medium term," Sunidhi Securities has said in its research report.