29 August, 2014 08:43 IST
News
SMC Global's fundamental picks: South Indian Bank, Neyveli Lignite
Source: IRIS (17-NOV-12)
Comments  |  Post Comment

Following stocks have been recommended as fundamental picks by SMC Global:

1. South Indian Bank

Current market Price (CMP) : Rs 23.20
Target Price (TP):  Rs 31
Upside: 33%

The bank is aggressively expanding its branch network across the country and has plans to add more branches and ATM going forward. In a tight interest rate scenario the bank has maintained NIM around 3% during the first half of the current fiscal and has plans to maintain NIM of 3% going forward. Meanwhile the overall CRAR of the back is as high as 14.43%.

We expect stock to see a price target of 31 in one year time frame based on FY14 (E) book value of 26.98 on a target P/BVx of 1.15.

2. Neyveli Lignite Corporation

Current market Price (CMP) : Rs 82.65
Target Price (TP):  Rs 92
Upside: 12%

Company estimate is 10 per cent growth every year in turnover and around 10-15% in profit. NLC forges ahead in all fronts and with its expansion activities the company is poised for substantial growth in the years to come. The company is planning to add 15,000 Mw of power by 2020-22 at an investment of around ~90,000 crore.

We thus expect the stock to trade for a price target of '92 in one year time frame, based on estimated FY14E EPS of 9.04onatwoyears historical average P/Exof10.2.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


News
ONGC to invest Rs 52.2 bn in Daman project - 28-Aug-2014 17:26
CRISIL revise rating outlook to `Positive` on Shriram Transport - 28-Aug-2014 16:39
BHEL names AN Roy as a non-official director - 28-Aug-2014 15:49
Ind-Ra assigns Blue Dart's NCD issue 'AA(exp)' - 28-Aug-2014 15:49
HCL Tech in strategic pact with AppDynamics - 28-Aug-2014 15:38
Tata Motors enters Algeria with range of passenger cars - 28-Aug-2014 15:24
Ind-Ra assigns CEAT's fixed deposit programme 'A+' - 28-Aug-2014 15:15
Indraprastha Gas to buy 50 mn shares in MNGL for Rs 1.9 bn - 28-Aug-2014 15:15
CRISIL reaffirms `A-/Stable` ratings on Atul Auto - 28-Aug-2014 14:52
GE Shipping sells 'Jag Prachi' vessel - 28-Aug-2014 14:46
'Overweight' SKS Microfinance; target Rs 385: Morgan Stanley - 28-Aug-2014 14:17
more...
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type   9j8k8q into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Forums  |   E-mail  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer