Top Analyst Picks

Jyoti Structures

Current market price: Rs 121.90
Target price: Rs 235
Growth potential: 92.78%
Brokerage: Networth Stock Broking
Rating: Buy

Jyoti Structures (JSL) promoted by Valecha Group was incorporated in 1974, is one of the leading domestic players in power transmission, distribution and substation related projects. The company has also significant presence in overseas markets with projects executed in more than 35 countries.

JSL is one of the largest transmission lines and towers manufacturers having 20% market share in the domestic market. The company is planning to expand capacity in fiscal year 2008 from 76,000 mtpa to 94,000 mtpa to drive the volumes.

JSL is planning to increase presence in South Africa & Gulf markets through joint ventures and subsidiaries. Rural electrification and ultra mega power transmission projects have given huge order opportunity to the company.

Considering the robust order book going ahead on the back of huge power capacity expansion plans in India, capacity expansion and the growth rate of Jyoti Structures, Networth Stock Broking have initiated a `BUY` signal on the stock with a price target of Rs 235.

Deepak Fertilisers & Petrochemicals Corp

Current market price: Rs 104.95
Target price: Rs 183
Growth potential: 74.37%
Brokerage: Religare Securities
Rating: Buy

Deepak Fertilisers & Petrochemicals Corporation (DFPCL) has business interests in chemicals, petrochemicals, fertilizers & other agri-inputs, and specialty retailing. The company`s business can be broadly categorized into chemicals and agribusiness.

DFPCL has been witnessing a major gas supply shortfall, which led to under-utilization of its methanol and ammonia plants. The company receives only about 0.4 mmscmd as against its total requirement of 0.8 mmscmd. Reliance KG basin gas is expected to come from fourth quarter of current fiscal and hence gas availability is expected to go up significantly.

Government`s focus on gas going first to fertiliser sector followed by petro chemicals and power, reinforces the increase availability of gas to the company. It will drive company`s profitability by ramp up in capacity utilization. It can drive company`s revenues by Rs 2 billion and profitability by Rs 500 million.

Keeping in view the robust opportunities in the industry, capacity expansion of the company and the growth rate of DFPCL, Religare Securities have initiated a `BUY` signal on the stock with a price target of Rs 183.

Gujarat Fluorochemicals

Current market price: Rs 198.15
Target price: Rs 300
Growth potential: 51.40%
Brokerage: Hem Securities
Rating: Buy

Gujarat Fluorochemicals (GFL) is a part of the USD 2 billion INOX group of companies and is the largest manufacturer of refrigerant gases in India. The company is engaged in the manufacture of chlorofluorocarbons, hydro fluorocarbons, anhydrous hydrochloric acid and caustic-chlorine.

The company has been a pioneer in the refrigerant business and is has also diversified into the power generation and carbon credits. The chemical complex commissioned in Dahej will strengthen the cost competitiveness of the company by making it amongst the most integrated manufacturers of these products.

The growing demand for PTFE is also expected to boost the growth rate of the company. The company`s top line and bottom line has grown with a CAGR of 61.41% and 92.92% respectively from fiscal year 2005 to fiscal year 2008, indicating the robust growth in its business.

Keeping in view the robust opportunities in the industry, capacity expansion of the company and the growth rate of Gujarat Fluorochemicals, Hem Securities have initiated a `BUY` signal on the stock with a price target of Rs 300 in the long term investment horizon.