Buy Supreme Infra; target of Rs 340: JRG Securities

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Supreme Infrastructure India (SIIL) was promoted by Mr. Bhawanishankar H. Sharma along with other promoters as Supreme Asphalts Private Limited in 1983. The name of the company was subsequently changed to Supreme Infrastructure India Private Limited in 2002. Over the years, SIIL has evolved as a full-fledged Infrastructure company with interest in Roads, Bridges, Railways, Power and Buildings, Sewerage and Irrigation.?

?Historically, SIIL's business has been concentrated in and around Maharashtra (around 70%). The company is systematically making its headway into different parts of the country and also entering into new business segments. The company is diversifying across Infrastructure verticals like roads, bridges, building construction, sewerage, pipelines, railways, power and irrigation to de-risk itself from fluctuations in any one segment. Other than this, it is slowly establishing its presence in different states like Gujarat, Rajasthan and Karnataka, Haryana, Goa, Punjab and Uttaranchal and the NCR.?

?We have valued SIIL based on the SOTP valuation. We have valued its core Construction business at 13X its FY11E core earnings (Rs 316) while the other Road and Bridge BOT projects are cumulatively valued at Rs 24 per share. Thus recommend Investors to ?Buy? the stock at current levels and average on dips in the range between Rs 240- 245 for a target price of Rs 340 in twelve months,? .@Supernsetips.com provide you the 99% sure shot stock market tips .

Buy Mahindra and Mahindra; target of Rs 831: PINC Research

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Mahindra and Mahindra (M&M), with a major rural presence, is expected to benefit from strong monsoons this year. The automobile segment is expected to record volume growth of 20.8% in FY11, after an impressive 30% growth in FY10. The tractor segment is expected to grow 10.3% in FY11, due to increased demand from the construction and infrastructure sectors.?

?Mahindra and Mahindra will move on this key 1) Ssangyong, Korea, has selected M&M as a preferred bidder. The acquisition would provide M&M a 2-3 year leap in terms of product development. Financial details on the transaction are awaited. 2) Production for the JV with Navistar has begun at the Chakan plant. 3) M&M has received EPA approval for launch in the US. 3) There is strong demand for small commercial vehicles (SCVs), the fastest-growing CV segment, which M&M recently entered into with the launch of Maximmo and Gio. 4) The company is expected to roll out expansion plans to ramp up capacity given current growth in the tractor segment.?

?We expect EPS of Rs 39.6 and Rs 43.7 in FY11 and FY12 respectively. Our FY11 earnings estimate is 3.3% lower than consensus estimate of Rs 40.9. We value M&M using SOTP at Rs 831, discounting the standalone business at 14x FY12E earnings,".@Supernsetips.com provide you the 99% sure shot stock market tips .

Buy Infosys Technologies; target of Rs 3500: PINC Research

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Infosys reported another strong set of quarterly numbers, led by robust volume growth and uptick in onsite pricing. Management raised its FY11 USD revenue growth guidance to 24-25%YoY (from 19-21%YoY previously) validating the confidence in the demand environment, which would underpin growth going forward.?

?Infosys revenues grew 12.1%QoQ to Rs 69470 million whereas USD revenue rose 10.2%QoQ to USD 1496 million. EBIT margin improved 190bpsQoQ to 30.2% led by cross currency movement and higher utilisation. Infosys reported EPS of Rs 30.4 (up 16.8%QoQ). US saw 7.7%QoQ growth, Europe surprised positively; recording growth of 18.3%QoQ and India grew 36%QoQ. This demonstrates strength in the demand environment globally. Among verticals, BFSI grew 8%QoQ, retail surged 20.2%QoQ, and telecom and manufacturing which were struggling in the past rose 3.9%QoQ and 6.8%QoQ respectively. Infosys won nine large outsourcing deals in H1, of which a few are more than USD100mn. It has a strong deal pipeline of large transformational deals. Its top 10 clients grew 12.7%QoQ.?

?Increase in USD revenue guidance includes outperformance of this quarter but implied Q4FY11 revenue growth guidance appears muted at 1.4%QoQ. Management has raised its hiring target to 40,000 employees, which reflects the confidence in the demand environment. Infosys is expected to outperform its EBIT margin guidance of 130bpsYoY for FY11. We raise our EPS estimates by 0.5% and 2.9% for FY11 and FY12. We maintain our Buy recommendation with a target price of Rs 3500 based on 23x FY12E

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Buy Axis Bank; target of Rs 1810: IIFL

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Axis Bank reported yet another quarter of strong performance, as net profits increased by 38%. This came ahead of market consensus and our estimates. Robust YoY loan growth of 36% and high and stable NIM of 3.7% drove strong net profits for the quarter. Expectedly, fee income growth remained sluggish and credit costs remained high. Despite this, net profit growth accelerated sequentially.?
?We believe robust demand for corporate loans and increase in LDR, enabling some sequential improvement in NIM, would sustain 30%+ net profit growth during 2HFY11. Increase in lending rates and higher CASA levels would offset the effects of higher deposit cost in 2HFY11. Our base case assumes that the current trend in loan loss provisions (LLP) would sustain. An improvement in this trend would likely yield upside to our and consensus earnings expectation.?

?We believe the strong momentum is likely to sustain in 2HFY11, driven by robust demand for wholesale loans and likely increase in LDR, thereby enabling NIM improvement. We maintain our earnings estimates for now. We raise our target price to Rs 1810 based on 3.3x FY12ii P/B. We retain BUY

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