[T.S.R:12152] analyst calls

IRB Infrastructure Developers

Brokerage:

BNP Paribas

Analysts:

Vishal Sharma and Shashank Abhisheik

Call:

Buy

Price target:

Rs 293

Date of call:

January 11, 2010

Price on that date:

Rs 267.30

Rationale:

The company has refinanced Rs

1,000 crore of its existing debt on the

Mumbai-Pune Highway at 10.6% on

average fixed for the remaining tenure of the project (8.5

years).We were expecting 11%.

We maintain our sum of total parts (SoTP)-based target

price of Rs 293.We used discounted cash flows (DCF) (with

cost of equity of 13.5%) to value the build-operate-transfer

(BOT) projects at Rs 130, 8 times FY2011 EBITDA to value

the construction arm at Rs 108.We value the company's

real estate business using DCF (discount rate of 15%) at

Rs 25. Finally, we attribute Rs 30 as the option value to Rs

2,000 crore worth of projects that the company can fund

from existing cash flows (assuming 2 times price to book

and 3:1 debt equity ratio). IRB is our top pick in the sector.

Bajaj Hindusthan

Brokerage:

Credit Suisse

Analyst:

Arya Sen

Call:

Outperform

Price target:

Rs 274

Date of call:

January 11, 2009

Price on that date:

Rs 232.65

Rationale:

Bajaj Hindusthan's December

quarter results were strong — in

line with expectations — as high

sugar realisations (Rs 31.6 per kg

versus Rs 25.5 per kg last quarter) and inventory revaluation

gains more than offset the impact of higher cane

costs.We remain bullish on the sector, as we expect the final

production number for FY10 to disappoint against current

industry estimates of 15.5-16 million tonne. Bajaj Hindusthan

estimates production of 12.5-13 million tonne in

FY10; our estimate is 14 million tonne.

Bajaj Hindusthan continues to be our top pick on account

of its high leverage to sugar prices. We revise our

FY10 earnings per share estimate to 17% and raise our target

price to Rs 274 (from Rs 238). Maintain Outperform.

Sunil Hitech Engineers

Brokerage:

Kotak Securities

Analyst:

Apurva Doshi

Call:

Buy

Price target:

Rs 300

Date of call:

January 7, 2010

Price on that date:

Rs 236

Last close price:

Rs 240.40

Rationale:

At a current market price of Rs

236, the stock trades at attractive valuations

of 1.1 times book value, 6

times earnings and 3.9 times cash earnings based on

FY2011.We believe that the current valuation is attractive

considering the clear growth prospects of the company, going

forward. This is due to strong order book of 3.2 times

FY2009 revenues, superior execution capabilities and

thrust on power sector India. We remain positive on the

medium to long-term growth prospects of Sunil Hitech.

Due to a 27% upside potential from current levels,we continue

to recommend Buy on Sunil Hitech with increased

price target of Rs 300.