Stocks To Buy & Sell After Q4FY15 Results: Amar Ambani Of IIFL

Eicher Motors (Q1 CY15) – BUY
CMP Rs15,789, Target Rs18,500, Upside 17.2%

• Consolidated performance in line with expectations as better than expected standalone performance was offset by weaker than estimated VECV performance
• Royal Enfield reported highest ever OPM of 26.1%, a surge of 305bps yoy and 253bps qoq driven by significant benefits of operating leverage
• VECV performance was below estimates as in spite of sequential volume growth margins were down and were below estimates
• We maintain our rating to BUY with a revised price target of Rs18,500 as we believe the company deserves premium multiples given strong earnings growth forecast in both its two wheeler business and the commercial vehicle business

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Talwalkars Better Value Fitness (Q4 FY15) – BUY
CMP Rs334, Target Rs450, Upside 34.7%

• Robust Q4 with 16.6% revenue, ~800bps margin expansion and 15.7% yoy rise in PAT
• Same store growth in the range of 9-10% yoy; company looks to further increase share of value added services in overall revenues
• Solid execution and robust demand outlook support our BUY reco

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Titan Company Ltd (Q4 FY15) – Accumulate
CMP Rs354, Target Rs404, Upside 14.4%

• Disappointing performance with Q4FY15 net sales down 11% yoy as demand remained weak.
• FY15 net sales at Rs 11913.4 crs were 5% below our expectations, registering a moderate growth of 9% yoy.
• Q4FY15 operating profit declined ~9% yoy with mere 24 bps improvement in margins.
• Lower tax rate due to tax benefit at Pantnagar unit helps post marginal increase in PAT.
• New golden harvest scheme still to see significant pickup.
• Reduce 12-month target price to Rs404. Retain Accumulate.

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Orient Cement Ltd (Q4 FY15) – BUY
CMP Rs175, Target Rs219, Upside 25.1%

• OCL revenues stood at Rs. 394cr (down 1.8%yoy) as volume growth nosedive 18% yoy basis
• Blended realisations improved 16.6%yoy; in-line with estimates
• OPM stood at 25.3%; better than estimate on lower RM and freight cost
• PAT stood at Rs. 85cr (our estimate of Rs. 70cr) as tax outflow was lower on account of investment allowance being claimed under sec. 32 AC
• Trades at US$96 EV/ton; Maintain BUY

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Essel Propack – [Call Success & Update]
Reco price Rs111, Previous target price Rs144, New target price Rs161

We had recommended a BUY call on Essel Propack in our strategy report Diwali Dhamaka released on October 22, 2014 with a price target of Rs144. The stock achieved our target in today’s trading session thereby delivering ~30% returns from our recommended price of Rs111. We remain positive on the growth prospects of the company and advise investors to continue to hold the investment for a revised one year price target of Rs161.

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