INEOS ABS

CMP Rs. 306.00

BSE Code: 506222

The company is engaged in manufacturing of thermoplastic like ABS (Acrylonitrile Butadience Styrence) which are mainly used in interiors of automotive parts, consumer durables, and diagnosis equipments. During the Q3 ended in December the  company has earned the net profit of Rs. 20.03 crore with the sales of Rs. 168.37. The has very little equity of Rs. 17.59 crore. Considering the rise in demand investors are recommended to invest in this scrip for one to one and  half year. They may get the benefit of very high target price.

Lumax Auto Technology

CMP – 128.00
BSE Code : 532796

The company , engaged in manufacturing of auto parts like sheet metal parts, fabricated assembly and tubular parts, has at present six manufacturing plants at various location. The company is also looking forward to enter in the business of electric lighting. The promoters of the company hold 53.9 % equity. During the Q3 ended in December the company has earned the net profit of Rs.11.4 crore with the income of Rs. 196 crore which shows the EPS of 15.75 and the book value of 71. At present the stock is traded with multiple of 6 PE. Considering the positive factors like increasing top line, improvement in margin, re-rating of new business and sectors  investors should add this scrip in their portfolio for the next six to 8 months.

Indus Ind Bank

CMP – 189.00

BSE Code : 532187
During the fourth quarter ended in March the bank has performed at its best level as its net profit has increased to Rs. 98 crore with the growth of 94.66 % on Y2Y basis. The bank has achieved this goal thanks to its increased margin growth and interest income. Its NII increased to Rs. 886.41 crore that shows the rise of 93 %. The banks expects that its NIMS will  increase with 3.2 % and 3.3 % growth rate in FY 2011 and 2012 respectively. At present this stock is traded at 3.5 times more than its estimated book value. Investors are recommended to  add this scrip in their portfolio at every dip.

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Karvy Stock Broking has recommended a buy rating on Bank Of India with a price target of Rs 455 in its April 17, 2009 research report.

“In 4th QFY09, we expect the bank to record 24% (Y/Y) growth in deposits and 29% growth (Y/Y) in net advances and the bank’s NII is expected to grow by 34% (Y/Y) to Rs 16.3 billion. For FY09, we revise our earning estimates upward by 15% to Rs 31.5 billion to factor in higher NII growth and fee income and for FY10, we reduce our earning estimates downward by 18% to Rs 27.1 bilion to factor in lower business growth, pressure on margin and higher loan losses provisions. We decrease our target price by 5% to Rs 455. At current price, the stock quotes at 1.16x FY2010 adjusted book value; we rate the stock as a ‘BUY‘ with a price target of Rs 455 at 2.05x adjusted book value FY2010,” says Karvy Stock Broking’s research report.

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