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Motilal Oswal has downgraded Mphasis to neutral rating with a price target of Rs 710

admin — Sun, 28 Feb 2010 11:27:36 +0000

“Mphasis 1QFY10 results were in line with expectations, excluding impact of higher than anticipated forex gains on revenue and other income. EBITDA margins were in line with expectations at 26.3% (v/s est. of 26.4%) and profits were flattish, excluding impact of forex gains. The stock quotes at P/E of 13.9x FY10 (YE Oct) and 13.3x FY11 earnings. We downgrade the stock to Neutral, with a target price of Rs 710, based on 14x FY11 earnings. We expect pricing cut from its parent HP and uncertainty on applications pricing going forward to weigh on the stock in the interim. Lower than anticipated pricing declines can provide upsides to our estimates, “says Motilal Oswal research report.

Hold Dabur, target of Rs 116: Indiabulls Securities

admin — Fri, 22 May 2009 14:06:59 +0000

Indiabulls Securities Research has maintained its hold rating on Dabur India with a price target of Rs 116, in its report dated May 21, 2009.

“Dabur reported an impressive fourth quarter numbers as its net sales grew 20.6% yoy to Rs 7.3 billion driven primarily by 13.7% volume growth. The increase has come from Dabur’s flagship segments Consumer Care Division (CCD) and Consumer Health Division (CHD), which grew 18.4% and 18.8% respectively. EBITDA margin also increased by 60 bps yoy to 18.3% during the quarter due to soft raw material prices. In our view, the Company maintains strong fundamentals and it is gaining traction both in portfolio mix and into newer geographies.”

“We expect Dabur’s revenue to grow at a CAGR of 16.6% during FY09-FY11 on the back of a healthy volume growth driven by its existing popular brands and new launches. We expect Dabur to expend heavily in advertisement during the new launches, which is likely to help in grabbing the early market share. At the CMP the stock trades at a forward P/E of 19.8x and 16.8x for FY10E and FY11E. Based on our DCF valuation (assuming a WACC of 12.2%, Rf of 7.91%, and terminal growth of 5%) we arrived at a target price of Rs 116, which provides an upside of 3.9% over the CMP of Rs 111.85. Therefore, we maintain our hold rating on the stock,” says Indiabulls Securities’ report.

Buy Torrent Power, target Rs 186: Hem Securities

admin — Fri, 22 May 2009 14:05:13 +0000

Hem Securities has recommended a buy rating on Torrent Power, with price target of Rs 186, in its report dated May 21, 2009.

“The stock at the current market price of Rs 140.10 will trade 16.23 times to its earnings of Rs 8.63 (TTM) and 2.01 times to its book value of Rs 69.80 and is expected to provide huge upside potential in medium to long – term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 186 in the medium term investment horizon (5- 6 months) with an appreciation of 33%,” says Hem Securities’ report.

Buy MphasiS, target Rs 406: Parag Parikh

admin — Fri, 22 May 2009 14:02:09 +0000

Parag Parikh Financial Advisory Services has recommended a buy rating on MphasiS with price target of Rs 406 in its report dated May 21, 2009.

“With EPS at Rs 10.69, the company seems to be on its way to achieve an annual EPS in its fourth decile, with a conservative estimate at Rs 40.6. This brings the earnings multiple to around 7 times at CMP. We recommend a BUY at 10 times one year forward earnings with a target price of Rs 406,” says Parag Parikh Financial Advisory Services’ report.

Buy Man Industries, target Rs 66: Sharekhan Stock Tips

admin — Fri, 22 May 2009 14:00:21 +0000

Sharekhan has recommended a buy rating on Man Industries with price target of Rs 66 in its report dated May 21, 2009.
“Assuming a substantial discount to the average multiple, we have valued Man Industries taking the average of 5x one-year forward PE multiple and 2x one-year forward EV/EBIDTA multiple. In our valuations, we have not considered the value of its real estate portfolio as the realty business is at a very nascent stage. However, we have valued the real estate projects of the group at Rs103.4 crore (considering the group’s 58% stake in the projects) and if this value is included in our estimates the same could add about Rs 19 to the sum-of-the-parts valuations. We recommend a ‘Buy’ on the stock with a price target of Rs 66,” says Sharekhan’s report.

Petronet LNG an underperformer: Karvy Stock Broking

admin — Thu, 16 Apr 2009 11:32:08 +0000

Karvy Stock Broking has changed its rating on Petronet LNG from buy to underperformer with a price target of Rs 49 in its April 16, 2009 researcvh report.

“We expect the revenue growth of 32.8% YoY (QoQ decline of 5.9%) to Rs 23,280 million. LNG sales volume is likely to be flat YoY as the company took planned shutdown of its import terminal at Dahej. EBIDTA margins are likely to fall to 7.6% from 12.3% a year ago. The operating profit is expected to decrease by 17.2% YoY to Rs 1,778 million. Interest is unlikely to change significantly as the incremental borrowings are being made for expansion on which the interest is being capitalized till the time of commercial commissioning of the expanded capacity. Depreciation is expected to remain flat in the absence of any new expansion coming on stream. Overall, the net profit is expected to decline by 15.5% YoY to Rs 1,015 million translating in to EPS of Rs 1.4 during the quarter.”

“For FY09, we expect the revenue growth of 9.8% to Rs 71,948 million and adjusted profit to fall by 13.1% to Rs 4,123 million. But we change our rating from BUY to Underperformer due to the recent surge in the stock price, price target of Rs 49,” says Karvy Stock Broking’s research report.

Infosys a market performer: Khandwala Securities

admin — Thu, 16 Apr 2009 11:30:21 +0000

Khandwala Securities has rated Infosys Technologies as a market performer with target price of Rs 1,490 in its April 16, 2009 research report.

“Infosys reported 4.3% decline to USD 1,121 million of revenues for 4QFY09 (USD 1,134 million in constant currency); little lower than our expectations of USD 1,130 million. Revenues in rupee terms remained in-line with our estimates due to better average rupee realization (Rs 50.24/USD as against our estimates of Rs 49.8/USD). Net profit in rupee terms is higher than our expectations primarily due to rupee rate assumption and tax reversal of Rs 150 million.”

“We have revised FY10E USD revenue estimates down by 5% factoring lower billing rates and volumes. We cut our recommendation to Market Performer on the stock with a revised target price of Rs 1,490 at 14x FY11E earnings (from Rs 1,525 earlier), considering stock out-performance in recent past, weaker FY10 guidance and missing positive catalysts in near future,” says Khandwala Securities’ report.

Hero Honda an outperformer: Karvy

admin — Thu, 16 Apr 2009 11:28:21 +0000

Karvy Stock Broking has maintained its outperformer rating on Hero Honda Motors with a price target of Rs 1,250 in its April 16, 2009 research report.

“Hero Honda Motors (HHML) is expected to report robust topline and bottom line growth during 4QFY09. On YoY basis, we expect the company’s revenues to grow by 17.5% from Rs 27,887 million to Rs 32,762 million. Revenues during the quarter are expected to grow on account of volume growth and increase in realization. On YoY basis the company has registered a healthy 12.9% growth in volumes on back of 100% growth in the scooter segment and 11% growth in the sub125cc segment. Net realization in the quarter is expected to improve by 4% on YoY basis on back of excise duty benefits and passing of raw material price increase onto the consumers.”

“We are marginally increasing our sales and net profit estimates (by 1%) for FY09 on back of better than expected volume nos. for the month of March (8% higher than our estimates). We continue to maintain our Outperformer rating on the stock with our price target of Rs 1,250,” says Karvy Stock Broking’s research report.

Hold Reliance, target of Rs 1,816: Sharekhan

admin — Thu, 16 Apr 2009 11:25:07 +0000

Sharekhan has downgraded its rating on Reliance Industries to hold with a price target of Rs 1,816 in its April 15, 2009 research report.

“With the commencement of gas production from the Krishna Godavari (KG) D-6 block, Reliance Industries Ltd (RIL) will now start monetising its investment in the exploration business. In spite of further capital expenditure (development of the KG D-6 block) over the next few years, the upstream business would generate significant free cashflows in the coming years.”

“We are rolling over the price target to the average of the FY2010 and FY2011 earnings. Consequently, we are revising upwards our price target for RIL to Rs 1,816 per share. In the last three months, the price of RIL stock has increased by 50%, outperforming the BSE-30 Sensitive Index, which has moved up by 21% during the same period. We are downgrading the stock to Hold rating. As the market price is close to our price target we recommend partial booking of profits (and waiting for a better entry point). Moreover, the recent weakness in refining margins and the stronger than expected rupee are the key risks to our earnings estimates and valuations,” says Sharekhan’s research report.

Sun Pharmaceutical a marketperformer: Karvy Stock Broking

admin — Thu, 16 Apr 2009 01:58:14 +0000

Karvy Stock Broking has rated Sun Pharmaceutical Industries as a marketperformer with a price target to Rs 1245 in its April 15, 2009 research report.

“Revenues for the quarter are expected to show a degrowth of 31% to Rs 8715 million. The lower growth can be attributed to negligible sales of Pantaprazole. Operating margins are expected to be lower at 41.9 % mainly on back of lower gross margins, higher staff and other expenses on account of the Chattem facility. Profits are expected to decline by 52% to Rs 3488 million.”

“We have reduced our FY 09E estimates by 0.8 % to Rs 84.7 on account of amortization of goodwill. We have also reduced our FY 10E estimates by 3.8% to Rs 70.8 on account of lower gross margins and higher other expenses and amortization of goodwill. We also introduce our FY 11E estimates and roll over our price target to FY 11E. We upgrade our price target to Rs 1245 based on 16x FY 2011E (EPS Rs 77.8) and continue to rate the stock as Marketperformer,” says Karvy Stock Broking’s research report.