HCL Technologies
Reco price: Rs 406
Target price: Rs 530

HCL Technologies’ (HCLT’s) performance was largely in-line with expectation. However, margin performance, which was better than consensus (lower than PLe), was driven by higher currency depreciation. Moreover, strong client addition, TCV in excess of US$1bn (Infosys-US$300m) and onsite volume growth was ahead of consensus expectation. We expect HCLT to deliver stronger-than-peer performance in FY12. We reiterate ‘BUY’ rating, with a TP of Rs530, 13x Mar-12e earnings estimates. – Prabhudas Lilladher


South Indian Bank
Reco price: Rs 23
Target price: - NA

For 3QFY2012, South Indian Bank (SIB) reported healthy net profit growth of 35.7% yoy (7.7% qoq) to Rs 102cr, in line with our estimates. Strong performances on operating income front (31.0% yoy) and sustained asset quality were the key highlights of the result. Current valuations at 1.1x FY2013E ABV have factored in the positives in our view and are considerably above the valuations of small and mid-sized PSU banks which have similar fundamentals, even after factoring in the robust growth witnessed due to the sharp rise in gold loans. Also, considering erosion of low-cost advantages of NRE deposits post their deregulation by the RBI in December 2011, we expect margins to come under pressure by 18-20bp over the next few quarter. Hence we maintain our Neutral stance on the stock. – Angel Broking


Tata Consultancy Services
Reco price: Rs 1,104
Target price: Rs 1,241

Current valuations at 1.1x FY2013E ABV have factored in the positives in our view and are considerably above the valuations of small and mid-sized PSU banks which have similar fundamentals, even after factoring in the robust growth witnessed due to the sharp rise in gold loans. Also, considering erosion of low-cost advantages of NRE deposits post their deregulation by the RBI in December 2011, we expect margins to come under pressure by 18-20bp over the next few quarter. Hence we maintain our Neutral stance on the stock. We have valued TCS at valuations which are similar to those of Infosys. TCS' recent revenue growth has been better than Infosys and it has been able to restrict impact on margins. This leads us to a price target of Rs.1241 based on FY13E earnings. (Rs 1,240earlier). At our target price, our FY13E earnings will be discounted by about 19x. We maintain our BUY rating on the stock. – Kotak Securities


Hero MotoCorp
Reco price: Rs 1,901
Target price: Rs 2,101

Hero MotoCorp (HMCL) Q3FY12 results were a tad below our estimate with lower than expected realisations. Average realisations at Rs37.9k/unit were up 0.5% sequentially as against our estimate of 1.0% growth. This in tandem with a 1.1% QoQ increase in raw material cost per vehicle impacted margins to the extent of 10bps. Thus, despite a lower than expected tax rate, net profits at Rs6.13bn were 1% lower than our estimate of Rs6.2bn. The stock is currently trading at 14.0x its FY13E earnings. We see limited upside from the current levels and reiterate an ‘ACCUMULATE’ rating on the stock with a revised target price of Rs 2,101 (earlier Rs 2,055) discounting FY13E earnings 15.5x. – PINC Research