Here are the Top 3 Conviction Buys from CLSA,
Infosys Technologies - current target [Rs 3175 ] is based on 20xMar'11 EPS - the multiple that has prevailed during past upcycles and ties in with the theoretical PE based on two stage DDM.
IDFC - Target 185 - expect IDFC to report 22% Cagr in loan book over FY09-11 and drive earnings Cagr of 22%. Healthy growth trajectory and strong management team justifies its premium valuations; our target price is based on 3.2x FY11 price/ adjusted book.
ICICI Banbk - Target 1000 - Re-rating can drive the stock-up to Rs1,000 (2x P/B) as growth becomes visible.
