Brokers’picks: SAIL, Aurobindo Pharma

JPM Maintains Overweight on SAIL

Target: Rs 105

Current price: Rs 56.95

Brokerage has cut EPS estimates by 20% & 3% for FY14 & FY15

Steel major expects an EBITDA/T uplift of $100/T, though no timeframe is given

Build in lower volume growth for FY14 against company target

At 0.5x P/B, the scrip is among the cheaper steel stocks available globally



Citi puts buy on Aurobindo Pharma

Target: Rs 260

Current price: Rs 185.35

Aurobindo is well placed to leverage backend infra & product basket

Strong revenue growth, and improving productmix will drive growth

Setbacks related to US import alert, & USFDA warning letter, CBI raids may weigh on valuations

Citi believe valuations are reasonably attractive