The stock of Jammu and Kashmir Bank (J&K Bank) is trading at 0.9x FY2012E ABV vis-à-vis its historic range of 0.8-1.4x and median of 1.1x. We maintain our positive view on the stock of Jammu and Kashmir Bank (J&K Bank) considering the bank’s strong deposit mix, dominant regional market share and healthy track record in asset quality. We believe that this provides sufficient margin of safety from the risks of political disturbances in J&K, especially in light of the bank’s steady performance even during past crises. Even taking into account the inherently lower-than-national average growth (in GDP, deposits, credit) in J&K, at just 0.9x FY2012E P/ABV and with sustainable RoEs of at least 17%, the stock is inexpensive. Hence, we maintain a Buy on the stock, with a target price of Rs 987, implying an upside of 33% from current levels
READ MORE »Posts tagged Anand Rathi
IDFC: Anand Rathi Securities Research Report
IDFC‘s sum-of-parts valuation gives us fair value of Rs 219; we value the lending business of IDFC at Rs 185/share (2.3x FY12e BV) and other businesses and investments of IDFC at Rs 34/share. Risks: substantial slowdown in infrastructure spending and inability to mobilize resources for the AMC business. We maintain our Buy rating on the stock for a target price of Rs 219
READ MORE »Tech Mahindra: Anand Rathi Research Report
We await further clarification from management of Satyam & Tech Mahindra, as regards current quarterly revenue run-rate (exit run rate), margins post wage hikes, utilisation levels and employee hiring pattern. Also, there is no clarity on Upaid and class action lawsuits. Hence, we maintain our target price & rating for Tech Mahindra
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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