Moneycontrol.com has reported that JP Morgan has claimed that the four companies chosen by it have been outperforming their peer group in terms of growth, have positive EPS revisions and whose valuations are still inexpensive relative to the sector/history. JP Morgan has upgraded either the price target or the earnings estimates post the Q4FY15 results.
Dish TV Rating: Overweight Target price: Rs 107
Rationale: In 4Q, the company delivered beats across all metrics. Net add momentum is at a four-year high and is expected to be sustained in F16. ARPU growth too has been better than expectations. Operating leverage is playing out on margins, given content costs are locked in until 1H16.
Oberoi Realty Rating: Overweight Target price: Rs 370
Rationale: Its earnings may move almost 3times from current levels over the next two years, driven by contributions from new launches and improvement in Mumbai residential volumes. Improvement in the sales profile of the luxury Worli residential (Ritz Carlton Residences) would add to cash flows and earnings almost immediately
L&T Finance Holdings Rating: Overweight Target price: Rs 80
Rationale: It is getting sharper with a focus on opportunities where the company thinks it has an advantage. It has highlighted a three-year initiative towards improving ROEs to 18% levels. Additional catalysts of unlocking of investments in PE book, launch of IDF remain.
Sintex
Rationale: Sintex’s F15 revenue growth of 20% is at a four year high given an improved contribution from the prefab and custom moulding business. Margins too improved 100bps for the year. The textile business is expected to start contributing strongly from F17 once new expansion kicks in, as per the company.
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