Motilal Oswal on ICICI Bank - Target Rs 825
Motilal Oswal is bullish on ICICI Bank and has maintained buy rating on the stock with a target of Rs 825, in its research report.
"ICICI Bank has entered into an agreement with certain shareholders of Bank of Rajasthan (BoR) to amalgamate BoR, with a tentative share exchange ratio of 1:4.72 (25 shares of ICICI Bank for 118 shares of BoR). The final exchange ratio will be based on due diligence and independent valuation reports. Assuming a share swap ratio of 1:4.72, the deal values BoR at Rs30.4b and will lead to ~3% equity dilution for ICICI Bank."
"The implied valuation of BoR at 4.8x trailing book value appears expensive, as the book needs to be adjusted for the re-assessment of BoR's NPAs by ICICI Bank. The key near-term challenges for ICICI Bank will be assessment of BoR's asset quality, rationalization and re-positioning of BoR's branches, and possible regulatory issues. We will review our target price for ICICI Bank post the merger details. Maintain Buy."
Moneyvidya.com on Concurrent Infra - Target Rs 100
Moneyvidya.com is bullish on Concurrent (India) Infrastructure and has recommended buy rating on the stock with a 2-3 year target of Rs 100.
"Concurrent (India) Infrastructure delivered 65 crore top-line in FY2010 and is expecting 200 Cr in FY2011, 350 Cr in FY2012 and over 500 Cr the following fiscal. The NPM would vary in the range of 8-20% for their verticals. 10%-12% NPM can be taken as an average which would translate into an EPS of 11.5-14 for 2012-13. As well as Kushgura, Concurrent has also recently acquired Kaziaviation and bagged orders from Riyadh airport for handling and maintenance under a joint venture with the prince of Dubai. This high margin vertical could contribute up to150 Cr top-line in the coming few years. Unlike many players in the sector, order execution is not a significant concern as the company plans to pass a high proportion of new orders on to other vendors for execution."
"The impressive pedigree of the Concurrent management, their existing infrastructure order book and the financial stability of this company make Concurrent a great long term buy. Taking a conservative forward PE of 9-7 it should be trading in the 3 figure range by in 2011-12," says Moneyvidya.com research report.
