Stock tips for April 11, 2013

Markets are expected to open higher as the Dow Jones hit another record high. Here are a few tips from renowned research and brokerage houses.

Ramco Industries

Frirstcall has put a hold call on Ramco Industries with a target of Rs 53. "At the current market price of Rs.47.25, the stock P/E ratio is at 6.57 x FY13E and 5.52 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs. 7.19 and Rs.8.55 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 11% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.11 x for FY13E and 3.69 x for FY14E. Price to Book Value of the stock is expected to be at 0.84 x and 0.74x respectively for FY13E and FY14E. We recommend ‘HOLD' in this particular scrip with a target price of Rs 53 for medium to long term Investment," says Firstcall Research report.

Tata Consultancy Services

Prabhudas Lilladher is bullish on Tata Consultancy Services (TCS) and has recommended accumulate rating on the stock with a target of Rs 1590 in its April 10, 2013 research report.

"TCS has acquired French IT services firm ‘ALTI' for €75m (Rs530 crores) in an all-cash transaction (0.59x CY2011 revenue, 8.2x EV/EBITDA). This acquisition, which is all set to strengthen the company's presence in France and Continental Europe, is expected to be completed by June 2013 and ALTI will start contributing to sales from July 2013 (subject to regulatory approvals). ALTI, established in 1995, has 1,200 employees based in France, Belgium and Switzerland providing business consulting & engineering services."

"The acquisition will help TCS to get access to several blue-chip clients across Europe with an expanded set of services & solutions and an opportunity to cross-sell. We maintain ‘Accumulate' at a target price of Rs1,590, 18x FY14E earnings estimate," says Prabhudas Lilladher research report.

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