Shriram Transport‘s 3QFY11 PAT grew 27% YoY to Rs 3 billion, driven by 45% YoY growth in net income (including income from securitization). This was led by disbursement growth of 30% YoY and NIM improvement (on AUM) by 57bp QoQ to 8.91%. In 3QFY11 SHTF provided Rs 552.7 million to comply with recent RBI guidelines to provide 25bp on standard assets
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Coromandel International Research Report: PINC Research
We have slightly decreased our FY12 estimates of Coromandel International by 8.5% following government’s move of ~15-20% reduction in subsidy for complex fertiliser. At the CMP of Rs 279, Coromandel International trades at FY11 and FY12 P/E of 14.1x and 12.4x and EV/EBITDA of 4.1x and 4.1x respectively. We maintain our ‘Hold’ recommendation with a target price of Rs 316 (22.5 FY12E EPS)
READ MORE »Sintex Industries Research Report: Angel Broking
We have revised upwards our earnings estimates of Sintex for FY2011 and FY2012 by 8.0% and 8.6%, respectively. At Rs 167, the stock of Sintex is trading at 8.1x FY2012E EPS and 1.7x FY2012E BV. Historically, Sintex has traded at 14x its 1-year fwd. avg. P/E, which makes current valuations attractive. Besides, Sintex’s fundamentals have strengthened with strong revenue visibility and demand in the domestic plastic segment. We maintain Buy Sintex with a target price of Rs 229
READ MORE »MUNDRA PORT & SEZ (MPSEZ) Research Report: Kotak Securities
At the current market price of Rs.164, the stock of MUNDRA PORT & SEZ (MPSEZ) trades at 6.6x book value, 27.3x earnings and 22.1x cash earnings based on FY12E. We feel the stock of MUNDRA PORT & SEZ (MPSEZ) looks attractive if we consider it on SOTP. This is due to its integrated business model coupled with superior infrastructure consisting of multi cargo port, SEZ, Airport, Rail and Road connectivity. Also the industries in the surrounding SEZ would provide steady flow of cargo to the port. This would ensure steady growth in volume of cargo handled at the port by MUNDRA PORT & SEZ (MPSEZ).
READ MORE »Redington Research Report: Kotak Securities
At the current market price of Rs.82, Redington‘s stock is attractively valued at 2.3x P/BV, 11.8x earnings and 10.4x cash earnings based on consolidated FY12E earnings
estimates. We continue to remain positive on the medium to long term growth prospects of Redington as we feel that Redington is poised to handle a greater share of the business in supply chain solution space with its unique business model, proven execution capabilities and its presence in potential markets. Due to 16% upside potential from current levels we upgrade Redington from REDUCE to BUY with increased price target of Rs.95.
Geometric: Kotak Securities Research Report
In FY11E, we expect an EPS of Rs.9.7 for Geometric, which is expected to move up to Rs.10.5 in FY12. For FY12, we expect tax rate to increase to 20% v/s about 4% in FY11. Our DCF – based price target for Geometric works out to Rs.86, based on FY12E earnings (v/s Rs.71 earlier). We upgrade the stock to ACCUMULATE. Our exit multiple works out to 8x FY12E EPS.
READ MORE »Tractors India Limited (TIL) Research Report: Kotak Securities
Tractors India Limited (TIL)’s current valuations appear favorable vis-à-vis the potential growth in revenues: At current price of Rs.730, Tractors India Limited (TIL)’s stock is trading at 10.8x and
9.3x P/E and 5.6x and 4.8x EV/EBITDA multiples for FY11E and FY12E respectively. We value Tractors India Limited (TIL) using DCF valuation methodology that derives a price target of Rs.900 per share, implying an upside of 24% over a 12- month horizon. Our DCF model employs a WACC of 12.05%, beta of 0.9 and terminal growth of 3%. At our target price of Rs900, the stock of Tractors India Limited (TIL) would trade at 13.3x
FY11 EPS and 11.4x FY12E EPS of Rs67 and Rs.79 respectively.
OnMobile Global: Jaypee Research Report
Presently the stock of OnMobile Global is trading at Rs.380. We still see an upside in the stock and hence have upgraded our 12-month Target price to Rs.403 a 10% increase over our previous Target price of Rs.366. This is on account of the additional revenues that can be generated from the 3G related services post Dilithium acquisition. We have however only included the impact of 3G services provided by OnMobile Global in India and have not factored in the impact of 3G services which it may launch in other markets through Dilithium
READ MORE »Punjab National Bank: Karvy Research Report
In case of Punjab National Bank (PNB), as on end-March’ 10, Punjab National Bank (PNB)‘s total gross NPAs was Rs32.1 bn (1.71% of gross advances) and increased to Rs36.1 bn (1.82% of gross advances). Out of total exposure, Rs3.0 bn has been recognized as NPAs and provided for in Q1FY11 but extent of provisioning is unknown. In a worst case scenario, if Punjab National Bank (PNB) writes-off entire exposure in FY11, EPS would decline by close to 6.5% to Rs 131 and book value would drift by close to 1.4% to Rs613. We await complete clarity on the issue to effect the change in earning estimates and target price. We maintain our earning estimates and Out Performer rating with a target price of Rs1,562 at 2.2x adjusted book value FY12
READ MORE »Kewal Kiran Clothing Company: Sharekhan Research Report
A strong brand profile, a disciplined management and a consistent track record coupled with a robust balance sheet position (cash on books at Rs90 a share) and attractive valuation (11.2x FY2012) make us bullish on the stock of Kewal Kiran Clothing Company. We initiate coverage on the stock of Kewal Kiran Clothing Company with a Buy rating and a one-year price target of Rs574 (15x FY2012 earnings, which is around 50% discount to the current valuations of the large retail companies like Titan Industries
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