At CMP of Rs 241 Allied Digital Services trades at a forward P/E of 7.3x and a TTM P/E of 10x, whereas its peers like Omnitech and Glodyne trade at a TTM P/E of 10x and 20x respectively. We believe that with the expected margin expansion going forward, the stock is due for a re-rating. Valuing Allied Digital Services at P/E of 10x FY11E EPS of Rs 32.7, we recommend a BUY on Allied Digital Services with a 12M target of Rs 327
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IL&FS Transportation Networks / ITNL: ShareKhan Research Report
In terms of the financials, IL&FS Transportation Networks / ITNL has displayed a stupendous growth in its revenue and bottom line (CAGR of 133% and 89% respectively) over FY2007-10. Going ahead, we believe with the increase in the toll/annuity income and the new project execution the revenue and bottom line is expected to grow at a CAGR of 46% and 30% respectively over FY2010-12. Thus, we initiate coverage on IL&FS Transportation Networks / ITNL stock with a Buy recommendation. Our SOTP price target of Rs 452 provides a 25% upside from the current market level. At the current market price the IL&FS Transportation Networks / ITNL stock trades at a P/E of 12.2x its FY2012E earnings
READ MORE »L&T: Kotak Securities Research Report
We recently met the management of L&T. L&T does not foresee execution slippages like in the previous year and indicated that the environment has vastly improved. Power sector to continue to be the major driver of order intake. We maintain Accumulate with an target price of Rs.2022 (Rs.1957 earlier). Due to the limited upside, we recommend investors to utilize declines to accumulate the L&T stock
READ MORE »J KUMAR INFRAPROJECTS – Kotak Securities Research Report
J KUMAR INFRAPROJECTS reported excellent performance during Q1FY11 led by strong execution. Revenues reported 31% YoY growth while operating margins stood at 15.4%. Net profits registered a growth of 28% YoY. This was better than our estimates. Order inflow in Q1FY11 was muted and was only through extension of scope of work in existing projects. But J KUMAR INFRAPROJECTS expects to overcome the slow growth in order inflows seen in H1FY11 going forward
READ MORE »Maruti Suzuki – Kotak Securities Research Report
We expect Maruti Suzuki to report net profits of Rs23,580mn in FY11E and Rs26,890mn in FY12E. Our revised EPS estimates now stands at Rs81.6 and Rs93.1 for FY11E and FY12E respectively. We are increasing our target price on the Maruti Suzuki stock from Rs1,200 to Rs1,224 but continue to maintain our REDUCE rating on the Maruti Suzuki stock
READ MORE »McNally Bharat Engineering – Angel Broking Research Report
McNally Bharat Engineering registered CAGR of 57% in order inflow during FY2005-10E, increasing from Rs406cr to Rs3,835cr. It may be noted here that even during the global meltdown in FY2009, McNally Bharat Engineering registered substantial growth of 101% in sales on account of being present in diverse sectors. Overall, order inflow has been robust on improving economic environment, higher government investments and private capex in basic infrastructure and the power segment. McNally Bharat Engineering‘s current consolidated order book (end of 1QFY2011) stands at Rs4,803cr or 2.4x FY2010 consolidated revenues, which provides high revenue visibility.
READ MORE »PHILIPS CARBON BLACK – ShareKhan Research Report
PHILIPS CARBON BLACK is expanding its carbon black capacity by 50,000 tonne to 410,000 tonne in FY2011 to capitalise on the rising carbon black demand in India. PHILIPS CARBON BLACK also intends to foray into the Vietnamese market by setting up a plant of a capacity of 50,000 tonne. The strong demand environment coupled with the hike in the price of carbon black in the domestic market adds to our confidence about the strong growth in the earnings of PHILIPS CARBON BLACK in the future.
READ MORE »MAHINDRA & MAHINDRA FINANCIAL SERVICES – Kotak Securities Research Report
In the wake of healthy monsoon and improved agriculture growth, business growth outlook for MAHINDRA & MAHINDRA FINANCIAL SERVICES appears highly positive. A buoyant rural economy will significantly boost advances growth. Moreover, we are of the view that MAHINDRA & MAHINDRA FINANCIAL SERVICES‘s strong geographic spread with a branch network of 487 in rural and semi-urban regions will aid in swiftly scaling up its loan book. We are raising our advances growth estimates for MAHINDRA & MAHINDRA FINANCIAL SERVICES from 20% CAGR over FY11-12 to 25% CAGR to Rs.104.7bn and Rs.131.9bn in FY11 and FY12 respectively.
READ MORE »Polyplex Corporation – Anand Rathi Research Report
The beauty or comfort for industry is derived from the fact that during this period and so far, there is no material rise in key input prices i.e. PET & MEG. Therefore margins of the whole industry arerising rapidly, as whole of the incremental rise in realizations is adding to profits. So, industry right now is earning super-normal profits and as per industry sources, no major capacities are comingup in production at least for next 2‐4 quarters. So, realization will remain strong for couple of more quarters. Even after that, may be realizations cools off some what, but they will remain quite healthy,giving good margins to industry going forward also.
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