Stock Recommendations- NIIT Technology & Bank of Baroda

NIIT Technologies

NIIT Technologies has become independent in 2004. It is a clarity company from IT sector. Company reported a sales turn over of near Rs 190 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 200 cr. A small decline can be seen in the sales turn over. Company reported a net profit of near 28 Cr in the second quarter FY 2012.  Its net profit in the second quarter FY 2011 was near Rs 27 Cr. A small increase can be seen in the net profit. Company has a very good management led by Rajendra S Pawar.

Market cap of the company is near Rs 1000 Cr. Book value is 97.48. Price/Book ratio is 1.87. P/E stands at 9. It is clearly below the industry P/E of 21. Company reported annual sales of near Rs 730 Cr in the second quarter FY 2011. Company is trading in its annual sales. 52 week high and low of the company is Rs 245 and Rs 163.30 respectively.  The stock price is now trading in the levels of Rs 180. It is expected that rupee depreciation in these months will definitely increase its profitability in the third quarter FY 2012. It will be a clever buying opportunity for long term investors. Long term target is Rs 250/

Bank of Baroda

It is an aggressive public sector bank started at 1908 in a small building at Baroda. Bank has a very good dividend history discloses the good attitude of the management. Bank reported a sales turnover of near Rs 7250 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 5160 Cr. About 40% gain can be seen in the sales turn over. Bank reported a net profit of near Rs 1170 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 1020 Cr. About 15% increase can be seen in the net profit.

Market cap of the bank is near Rs 26000 Cr. Book value is Rs 534.43. Price/Book ratio is 1.24. P/E stands at 5. It is below the industry P/E of 6. Bank reported annual sales of near Rs 2000 Cr in the FY 2011. The stock price has created a 52 week high of Rs 1006 on 28 April 2011. The stock price also created a 52 week low of Rs 631 on 20 December 2011. The stock price is now trading in the levels of Rs 660/. Long term target is Rs 1000/

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