Orient Paper

SKP securities has recommended the stock of Orient Paper with a price target of Rs 91.10 in its latest research report.

"At CMP of INR 78.5/share, OPIL is trading at P/E of 9.5x and 8.6x of FY13E and FY14E earnings of INR 8.3 and INR 9.1 respectively. We rate a BUY rating on the stock with a 12 months price target price of INR at 10.0x FY14E earnings," the research firm has stated.

According to the research firm, the commissioning of 55 MW CPP at Amlai is likely to improve cost efficiency of the paper division. The plant is expected to save ~INR 300 million annually and is likely to get operational by Q3FY13.

Further, better demand environment in western & southern markets to improve cement realization coupled with electrical segment's margin is also expected to improve in H2FY13 due to seasonal improvement in fan sales.

"The company is implementing a Greenfield expansion of 3 million tonnes per annum (mtpa) cement plant at Gulburga, Karnataka along with 50 MW CPP at a total cost of INR 1.72 billion which earlier was expected to be completed by FY14. As per current status, the company has acquired ~1,400 acres of land (total ~1,600 acres) at Gulburga and has applied for environmental clearance. Post approval, the plant is expected to get commissioned within 3 years," SKP has stated

Blur Star

Angel Broking is put a buy rating on the Blue Star stock with a target of Rs 224 in its December 21, 2012 research report.

"The positive impulse sensed by Blue Star's management earlier in 1QFY2013 has faded now with a deteriorating macro scenario. Some unexpected developments on the order book front and execution level are the prime reasons for the pessimistic outlook. We maintain our Buy recommendation on the stock with a reduced target price of Rs 224," the broking fir has stated.

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