Brokerage Recomendations

TCS an outperformer; target of Rs 1453: Macquarie
12-month price target: Rs 1,453.00 based on a PER methodology. 􀂃 Catalyst: US listing or an acquisition to penetrate Europe/Japan or winning a couple of large deals (>US$100m).
We reaffirm our Outperform rating on TCS given its strong focus on the software products business (providing much-needed non-linear growth) as well as traction in large emerging countries such as India and China.


Accumulate Bajaj Auto, target Rs 2424: HDFC Sec
BAL is working to bring down its inventory to 15 – 20 days. We believe, the inventory position will take some time to correct, as interest rates have begun to impact lower segment customers. We expect the 3- wheeler sales to be sluggish for a few more months. BAL has announced the closure of its Akurdi plant, which currently produces around 2,500 – 2,700 units/ month of Crystal (scooter). As the contribution of the scooter segment is negligible in terms of profitability, we do not see any negative impact on its core earnings. The success of the new bike launched recently will hold the key to volume growth for the company. We maintain our “Accumulate on Dips” rating with a target price of Rs.2,424 on the stock.



Buy Tata Motors, target Rs 792: Sharekhan
At the current market price of Rs696, the stock discounts its FY2009E consolidated earnings by 10.7x and is available at an enterprise value/earnings before interest and depreciation tax and amortisation of 5.4x. We maintain our Buy recommendation on the stock with a price target of Rs 792.



Buy TV18, target Rs 967: Sharekhan
Sharekhan is bullish on TV18 and has maintained buy rating on the stock with target price of Rs 967.