ITC, Infosys , and Sun Pharma have made it to the list of 50 Companies for 2015 of Morgan Stanley Global Index.
On ITC,
....expect ITC’s dividend payout to increase from ~50-55% in F09-F11 to over 70% in F12-F14. The F12e dividend yield for ITC at 2.5% is better than the Sensex’s 2.0%. We forecast a F11-14 earnings CAGR of 17% for the company. Price Target = 226
On Infosys,
Infosys has historically traded in a range of 10-30x one-year forward earnings. Currently, the stock is trading at ~17x one-year forward EPS, which implies a ~30% premium to Sensex. We believe Info-sys will be able to sustain its historical premium multiples to the broader market thanks to its superior earnings growth, strong balance sheet, and ample cash flows. price Target 3600
On Sun Pharma
We believe Sun can potentially expand its margins through the scaling up of complex drugs. However, we expect the effective tax rate to climb to the low teens in the medium term. Potentially, greater price controls by the Indian government is a longer-term risk. Price Target 500
