Brokerage Houses Recommendations Indian Stock Market

1. Buy Welspun India; tgt Rs 140: DSP ML
DSP Merrill Lynch research has recommended buy rating on Welspun India with a target of Rs 140. Research firm believes the company is making the right moves in a tough operating environment created by stronger Re, through its attempts to de-risk the business.

2.Buy Maruti Suzuki; target of Rs 1240: DSP ML
DSP Merril Lynch is bullish on Maruti Suzuki India and has recommended buy rating on the stock with a target of Rs 1240. Maruti’s growth in recent times has been largely driven by the success of its new products.

3. Buy Mahindra & Mahindra, target Rs 900: Sharekhan
Sharekhan research has maintained buy rating on Mahindra & Mahindra with target price of Rs 900. All new product launches would commence from FY2009 onwards, triggering good growth.

4. Buy Indian Hotel Company, target Rs 180: Sharekhan
Sharekhan research has maintianed buy rating on Indian Hotel Co with target price of Rs 180. IHCL acquired an 11.01% stake in Orient Express Hotels Ltd during the quarter and has further raised its stake to 11.5%.

5. Buy Reliance Capital, tgt Rs 3100: Merrill Lynch
Merrill Lynch has maintianed buy rating on Reliance Capital with target price of Rs 3100. It can arguably trade at 20x FY10 earnings v/s 18x FY10 in our ‘bull case’ scenario. Most peers trade at +25x.

6. Buy Tata Steel: ICICI Securities
ICICI Securities has maintianed buy rating on Tata Steel. Tata Steel’s capex for developing the mines is USD 1.5 billion.

7. Mcnally Bharat Engg an outperformer, tgt Rs 340: HDFC Sec
HDFC Securities is bullish on Mcnally Bharat Engineering and has maintained outperformer rating on the stock with target price of Rs 340. MBE is trading at a P/E of 17.4x and 13.5x its expected FY09E and FY10E fully diluted earnings.

8. Brokers bullish on M&M, Indian Hotels, Pyramid Saimira

9. Brokerage houses are bullish on M&M, Indian Hotels, Pyramid Saimira, Reliance Capital, Maruti, Welspun India, Micro Technologies, Sadbhav Engineering, Tata Steel, McNally Bharat Engineering and Provogue.

10. Buy Dish TV; target of Rs 120: CLSA Research
CLSA Research is bullish on Dish TV and has recommended buy rating on the stock with a target of Rs 120, which implies 25% upside. By adding 126k new subscribers, Dish TV has increased its monthly subscriber addition rate to 100K+ in 3Q from 60K in 1Q

11. Buy Prajay Engineers Syndicate: ICICI Sec
ICICI Securities has maintianed buy rating on Prajay Engineers Syndicate. We estimate Prajay’s fair value at Rs 23.5 billion or Rs 592/share based on discounted value of projects under planning and development over the next 4-5 years at Rs 13.4 billion.

12. Buy Zee Entertainment; target of Rs 360: CLSA
CLSA Research has recommended buy rating on Zee Entertainment Enterprises with a 12-month target price of Rs 360.

13. Buy Eicher Motors; target of Rs 569: DSP ML
DSP Merrill Lynch has upgraded Eicher Motors to buy from sell with a target of Rs 569. Eicher Motors announced formation of 54:46 JV with Volvo, which will operate as a subsidiary of the listed entity.

14. Buy Bharti Airtel; target of Rs 1300: DSP ML
DSP Merrill Lynch research has recommended buy rating on Bharti Airtel with a target of Rs 1300. Research firm value Bharti’s core telecom business at Rs 1175/share & add a further Rs 125/share towards external tenants on its towerCo. Our core valuation.

15. CCCL gets outperform rating, target 1220: Spark Cap
Spark Capital has come out with research report on Consolidated Construction Consortium, CCCL. The research firm has initiated coverage with an outperform rating with March 2009 price target of Rs 1220 per share.

16. Buy Mundra Port and SEZ : Edelweiss
Edelweiss research has maintaiend buy rating on Mundra Port and SEZ. In FY07, traffic handled by Indian ports grew 9.6% Y-o-Y to 463.8 million tones; major ports handled approx 75% of this.