BUY

MARKET PRICE: Rs 2,203

TARGET PRICE: Rs 2,900

On the back of strong profitability in 2QFY09 and 1QFY10, SBI had raised NPA provisions. Strong traction in fee income is likely to continue in 2QFY10. In 1QFY10, fee income grew 45% y-o-y. Trading profits will remain strong in 2QFY10, non-interest income growth of is seen at around 30% y-o-y.

BUY

MARKET PRICE: Rs 296

TARGET PRICE: Rs 360

Over the past three years, Cipla has invested around Rs 2,000 crore in manufacturing assets. The company has made aggressive plans to expand its manufacturing capacities. In the US, Cipla has entered into partnership for 118 products with 21 partners. Its number of partners have increased to 21.

BUY

MARKET PRICE: Rs 48

TARGET PRICE: Rs 65

During 2QFY10, GVK Power has witnessed momentum in terms of domestic passenger traffic at Mumbai airport (up 10% y-o-y) and higher operating rates for power projects (at 85%+). We expect earnings for GVK to grow at a compounded annual rate of 80% over FY09-11.

BUY

MARKET PRICE: Rs 283

TARGET PRICE: Rs 384

Birla Corp’s second quarter operational performance was better than estimated with reported revenue of Rs 530 crore (up 38% y-o-y) and profit of Rs 150 crore (up 155% y-o-y). Higher realisations and stable cost led to highest ever EBITDA margins at 38.3% (730 basis point y-o-y improvement).

BUY

MARKET PRICE: Rs 276

TARGET PRICE: Rs 375

Sesa Goa has raised $500 million through FCCB, the proceeds of which will be used to finance the company’s growth plans. During September 2009, iron-ore imports increased by about 30% month-on-month to 64.55 million tonnes. It is likely to benefit from strong prices and volume growth in 2HFY10.