| Result Update |
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ICICI Bank Reco: HOLD CMP: Rs904 Target Price: Rs900 Slippages under control · ICICI Bank's Q1FY11 NII at Rs19.9bn was in line with our estimates. With lower than expected provisions, PAT at Rs10.3bn was better than expected · As expected the slippages have come down during the quarter. Net slippages were down to Rs3.5bn with retail slippages at Rs2bn · Provision cover stood at 65%, guidance to take it to 70% by FY11. Earning asset growth of 15% for FY11, domestic to contribute with 20% growth · Valuations at 2.0x FY11E/1.8x FY12E ABV not very attractive. Maintain HOLD rating
Bank of India Reco: REDUCE CMP: Rs410 Target Price: Rs350 Slippages come under control · BOI's Q1FY11 NII at Rs17.4bn better than expected led by 3% qoq growth in advances and 14bps qoq expansion in NIMs. With lower provisions, PAT at Rs7.3bn better than expected · Slippages come under control at Rs6.2bn for the quarter; 2.0% annualised vs. 2.5% for FY10. We expect FY11 slippages at 1.2-1.4% · The NPA profile still remains uncomfortable with net NPAs of 1.2% (14% NNPA/networth) and provision cover of 57% · Expect to underperform peers with no significant discount in valuation despite lower asset quality. Valuations at 1.7x FY11E/1.4x FY12E ABV. Continue REDUCE rating
Torrent Pharma Reco: BUY CMP: Rs565 Target Price: Rs650 Raise target price; maintain Buy · Revenue growth is marginally below our estimates on account of 12% decline in CMO business and lower than expected growth in domestic formulation business · Despite higher employee cost, company's OPM was better than expected (21.4% vs. est. of Rs20.4%) · PBT in line with estimates. Higher tax provision impacted PAT (Rs777mn vs. est. of Rs802mn) · Maintain earnings; role-over valuation on FY12; raise target price to Rs650; re-iterate Buy
Jubilant FoodWorks Reco: ACCUMULATE CMP: Rs370 Target Price: Rs400 Going Strong; Maintain 'ACCUMULATE' · Jubilant FoodWorks (JFL) performance exceed expectation – revenue growth of 59.5% yoy to Rs1355 mn and adjusted net profit growth tripled to Rs153 mn · Same store sales growth at 37% yoy (30% volume-led growth and 5% price-led growth) – 2nd consecutive quarter of positive surprise · Revised our assumptions on same store sales growth from 10% to 16% in FY11E and 6% to 10% for FY12E · Upgrade earnings by 31% and 21% for FY11E and FY12E - Maintain 'ACCUMULATE' rating with revised price target of Rs400/Share
Grasim Industries Reco: ACCUMULATE CMP: Rs1,857 Target Price: Rs2,340 Cement business restricts EBIDTA growth · Grasim's Q1FY11 like to like net profit at Rs5.38 bn (1.6% yoy) ahead of est. Like to like revenue growth of 6.9% - driven by 19.5% growth in VSF-subdued 3.2% growth in cement · Like to like EBIDTA at Rs9.6 bn (-0.7%) - better than est (Rs9.5 bn)-impressive 53.6% growth in VSF EBIDTA (Rs3.0 bn) was negated by 14.7% decline in Cement EBIDTA (Rs6.3 bn) · Management cautious on VSF demand due to uncertainty in Eurozone and built up of inventory. Cement business to face margins pressure led by price weakness · Downgrade FY11 earnings by 5% and FY12 by 14.5% & target Price to Rs2340. Believe lot of negatives already in price -Stock implying 56% holdco discount- Maintain ACCUMULATE
Elecon Engineering Reco: HOLD CMP: Rs93 Target Price: Rs96 Interest cost propels earnings, Maintain 'Hold' · Elecon Q1FY11 performance meets expectation at operating level, but net profit growth at 57% yoy to Rs133 mn was above estimates (propelled by lower interest cost) · MHE division grew by 16% yoy to Rs1.5 bn with EBIT margins at 12.8% and TE division grew by 11% yoy to Rs1.0 bn with EBIT margins of 15.1% - in line with estimates · Sequential decline in order inflows arrested - order inflows grew 160% qoq to Rs6 bn and order book grew 27% qoq to Rs15.8 bn · Upgrade FY11E and FY12E earnings by 12% and 9% respectively. Maintain HOLD rating with price target revised from Rs86/Share versus Rs96/Share (at 10X FY12E earnings)
Jagran Prakashan Reco: BUY CMP: Rs121 Target Price: Rs155 Profits beat estimates, Retain BUY · PAT up 12.4% YoY to Rs556mn, ahead of our estimate of Rs496mn led by a healthy 18% advertisement revenue growth · EBIDTA margins expand by healthy 304bps despite cover price cut, employee cost rise of 20% and pagination increase of 3-4% · Industry wide new launches & increased competition begins to result in cover price cuts · We retain EPS estimate of Rs 7.0 & Rs 8.6 for FY11E & FY12E respectively. Retain BUY rating with target price of Rs155. Jagran remains our top-pick in Indian print media sector
India Cements Reco: SELL CMP: Rs105 Target Price: Rs98 Disastrous quarter- Maintain SELL · APAT at Rs108 mn (-91.3% yoy) sharply below estimates (Rs586 mn). Revenues at Rs8.8 bn (-7.6% yoy) – below estimates. IPL revenues not fully booked during the quarter · EBIDTA at Rs1 bn down 65% yoy – below estimates (Rs1.6bn) – led by higher than estimated P&F cost and IPL loss of Rs80 mn (on account of lower revenues) · Downgrade FY11 earnings by 38.5% for FY11E (EPS of Rs5.4) and by 38.3% for FY12 (EPS of Rs6.5)& target Price to Rs98 · Maintain SELL – current valuation of 20x PER & EV/t of USD86 for FY11, does not capture deteriorating balance sheet & suboptimal return ratios (FY11E-RoCE 5.2% & RoE of 4.6%) |
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