tag:blogger.com,1999:blog-82509451426265044752024-03-05T10:14:15.990+05:30IndianStocksNews.comBest Stocks To BuyUnknownnoreply@blogger.comBlogger184125tag:blogger.com,1999:blog-8250945142626504475.post-5484960475360092072013-01-22T09:16:00.003+05:302013-01-22T09:16:49.461+05:30Reliance Industries - What should you do with stock?Some notes meant to provide guidance on what to do with stock of Reliance Industries, especially after the recent rally in stock.<br />
<span id="fullpost"> <br />
The recent rally in Reliance Industries was driven by a possible increase in gas price and E&P approvals to re-start the drilling activities. Refining margins for company were better than expected in 3QFY13. Petchem remained flat with little signs of near term demand revival.<br />
<br />
Possible upside in stock price is expected from the gas price hike. Recent initiatives by the government of India enable the company to renew exploration activities in key <br />
fields.<br />
<br />
The initial E&P results will take six to twelve months, after which a case for a possible reserve upgrade could be made. While petchem capacity additions are a step in the right direction, the then macro mood will determine EBITDA growth but will be hard to predict.<br />
<br />
One may 'hold stocks’ of Reliance Industries in portfolio if already owned. </span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-37234606579561513932013-01-22T09:03:00.002+05:302013-01-22T09:03:41.313+05:30Large Cap Stock Analysis - Wipro LimitedHere are stock research notes based on 3QFY13 results of large cap stock Wipro.<br />
<span id="fullpost"><br />
3QFY13 USD services revenue went up 2.4% qoq and it is slightly better than market estimates. IT services EBIT margin was up 16 bps as productivity gains and forex gains offset lower utilization and promotion costs. This and higher other income led to an EPS beat.<br />
<br />
Company's 4QFY13 services growth guidance of 0.5 – 3.00% qoq is not very exciting but it does not derail the growth prospects.<br />
<br />
Volumes declined 1% qoq but offshore – onsite realizations grew 3.0 – 3.2% qoq, continuing the trend of productivity gains in fixed price contracts that started last year.<br />
<br />
The company noted that its pipeline had expanded 1.7 times since 3QFY12 and pointed out improved deal closures and a perceptible change in client sentiment over the past quarter.<br />
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Analysts are not overly worried about Wipro’s poor volumes as 3Q is seasonally weak and peers also saw a drop in volume growth.<br />
<br />
It looks like that 4Q guidance factors in macro headwinds like US debt ceiling etc, delays in some project starts and about 20 tail accounts that Wipro plans to de-emphasise.<br />
<br />
USD revenue growth is expected to pick up to 12.9% in FY14 from 5.6% in FY13.<br />
<br />
Positives in 3Q: the top 10 accounts continued to grow ahead of the company’s average on sales investments; realization was up 4-5% yoy; and attrition was much lower yoy at 14.2% vs 19%.<br />
<br />
In medium term, more upsides are expected in Wipro’s margins when the growth picks up.One may buy stocks of Wipro with a target price of Rs.460.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-10777699301938233872012-06-11T06:31:00.001+05:302012-06-11T06:33:04.623+05:30Large Cap Stock Research Report - SBIStock research team of Motilal Oswal (a leading stock broking firm) has come up with a stock reseach report on State Bank of India (SBI). Checkout the stock report and target stock price.<span id="fullpost"> <br />
<br />
<b>SBI Stock trades at 20%+ discount to it's long-term average valuations.</b><br />
<br />
A challenging macroeconomic environment in India and asset quality issues for SBI over the last couple of years have led to significant correction in valuations. SBIN is trading at a discount of over 20% to its Long-Period Average valuations.<br />
<br />
For SBI, strong core income performance is most likely to continue and stock research team at Motilal Oswal is conservative on credit cost estimates which would provide a cushion in case asset quality surprises negatively.<br />
<br />
With a market share of 25%, SBI is almost like a proxy to the Indian economy and SBI has historically traded at a premium to other Public Sector Banks (PSB's), despite its return ratios being lower. Over FY12-14, SBIN's RoA and RoE are expected to converge with other PSBs.<br />
<br />
It is expected that RoA will improve from 0.9% in FY12 to 1.1% by FY14 and RoE will improve from 15.7% in FY12 to 17%+ by FY14.<br />
<br />
SBI is a top pick in PSB space, with a stock price target of Rs.2,725 ( this is 1.25x FY14E consolidated BV + Rs.102 for Insurance business).<br />
<br />
<embed src="https://www.box.com/embed/ligaaosti70747v.swf" width="485" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-27388872145780750072012-04-03T05:00:00.001+05:302012-04-03T05:06:04.860+05:30Stock Research Report - Larsen & Toubro (L&T)ICICI Direct equity research team has recommended to buy stocks of Larsen & Toubro (L&T).<span id="fullpost"><br />
<br />
<b>Stock Outlook:</b><br />
Larsen & Toubro's (L&T) has been constantly increasing it's order backlog. L&T's FY12E revenue growth guidance of 25% YoY is well on track and is likely to be achieved. L&t has invested Rs.7400 crores in various subsidiaries. These investments, when unlocked will provide big returns for L&t shareholders. At current stock price of Rs.1332, the stock trades at 17.16x and 15.1x its FY13E and FY14E StEPS (standalone business). These stock valuations are certainly attractive as value of subsidiarie is also discounted in the current stock price.<br />
<br />
ICICI Direct equity research has recommended to buy stocks of L&T with a target stock price of Rs.1525 with a stop loss of Rs.1208.<br />
<br />
<embed src="http://www.box.com/embed/uk1n2dxm39l1g1p.swf" width="480" height="700" wmode="opaque" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always"><br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/04/stock-to-buy-tech-mahindra.html" target=_blank>Stock to buy - Tech Mahindra</a><br />
<a href="http://www.indianstocksnews.com/2012/03/goodyear-india-stock-to-buy-from.html" target=_blank>Goodyear India - Stock To Buy from Evergreen Industry</a><br />
<a href="http://www.indianstocksnews.com/2012/02/infotech-enterprises-stock-analysis-and.html" target=_blank>Infotech Enterprises - Stock Analysis and Recommendation</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-bpcl-3qfy12-results.html" target=_blank>Stock Analysis – BPCL 3QFY12 Results</a> <br />
<a href="http://www.indianstocksnews.com/2012/02/stock-report-va-tech-wabag.html" target=_blank>Buy Stocks of Va Tech Wabag</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analyis-bharti-airtel.html" target=_blank>Stock Analysis - Bharti Airtel</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-ongc.html" target=_blank>Stock Analysis – ONGC</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-1484795927380336682012-03-02T07:41:00.005+05:302012-04-02T08:32:16.786+05:30DLF Stock is worth only Rs.100 - Says VeritasIf you have to believe Canada-based independent equity research firm Veritas, DLF stock is only worth Rs.100. The stock trades at Rs.214.65 in BSE as on Thursday.<span id="fullpost"><br />
<br />
Veritas Investment Research has said this in its equity research report titled 'A Crumbling Edifice' and also has raised doubts about the company's disclosed book equity and asset base.<br />
<br />
The research report, authored by Research Head Neeraj Monga and Analyst Nitin Mangal at Veritas, says,"DLF has undertaken questionable related-party transactions to boost the value of DAL (DLF Assets) prior to its acquisition by DLF, thereby subverting the interests of minority shareholders via a higher purchase price for DAL."<br />
<br />
Read the entire detailed news article on <a href="http://economictimes.indiatimes.com/markets/real-estate/news-/veritas-hammers-dlf-doubts-realtors-accounts-says-stock-worth-just-rs-100/articleshow/12103750.cms" target=_blank>Economic Times here</a>.<br />
<br />
Check another old warning about real estate sector stocks I discussed in 2010 here: <a href="http://www.indianstocksnews.com/2010/11/realty-stocks-debt-and-investors.html" target=_blank>Realty Stocks, Debt And Investors</a> <br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/03/goodyear-india-stock-to-buy-from.html" target=_blank>Goodyear India - Stock To Buy from Evergreen Industry</a><br />
<a href="http://www.indianstocksnews.com/2012/02/infotech-enterprises-stock-analysis-and.html" target=_blank>Infotech Enterprises - Stock Analysis and Recommendation</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-bpcl-3qfy12-results.html" target=_blank>Stock Analysis – BPCL 3QFY12 Results</a> <br />
<a href="http://www.indianstocksnews.com/2012/02/stock-report-va-tech-wabag.html" target=_blank>Buy Stocks of Va Tech Wabag</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analyis-bharti-airtel.html" target=_blank>Stock Analysis - Bharti Airtel</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-ongc.html" target=_blank>Stock Analysis – ONGC</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-85207951832896686122012-02-28T08:27:00.001+05:302012-02-28T08:30:21.721+05:30Stock Analysis – BPCL 3QFY12 ResultsBuy Stocks of BPCL on dips for medium term time period. The stock analysis based on BPCL’s 3QFY12 results gives rationale behind this recommendation.<span id="fullpost"><br />
<br />
As everybody knows, huge chunk of revenue and profit for BPCL (Bharat Petroleum Corporation Limited) depends on subsidy that Government of India (GOI) allocates to it for petroleum products. This allocation from GOI has increased and due to this, BPCL reported 3QFY12 profit of Rs.3140 crores.<br />
<br />
For 4QFY12, BPCL is expected to receive compensation from GOI on account of under-recoveries by downstream companies.<br />
<br />
BPCL had reported Gross Refining Margin (GRM) of US $1.6/barrel in previous quarter. In 3QFY12, this GRM has improved to US $3.5/ barrel. It is a big improvement.<br />
<br />
BPCL is also involved into E&P (exploration & production) business and it is certainly exciting looking at its prospects. Currently BPCL is involved in E&P in Brazil and Mozambique and it is expected that these activities will see more appraisal and exploration work in FY12.<br />
<br />
It is expected that GOI will increase prices of Petrol and Diesel after assembly elections are over in Uttar Pradesh and other states (populist measures by corrupt government to play elections!). This will further help BPCL in improving its bottom line.<br />
<br />
BPCL would be one of the better stocks to buy in Petroleum sector. One may buy stocks on dips from current stock price of Rs.659 for medium term. The target stock price over one year could be around Rs.750. <br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-report-va-tech-wabag.html" target=_blank>Buy Stocks of Va Tech Wabag</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analyis-bharti-airtel.html" target=_blank>Stock Analysis - Bharti Airtel</a><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-ongc.html" target=_blank>Stock Analysis – ONGC</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-27076680454989307452012-02-22T06:08:00.001+05:302012-02-22T06:15:35.839+05:30Stock Analysis - Bharti AirtelStock price target based on Bharti Airtel’s 3QFY12 results. The stock had a run from 320 to 400 and then back to 360 in past 2 months in line with run up of Indian stock markets. One may still buy stocks of Bharti Airtel but the stock price target will not be a significant upside from one year point of view. <span id="fullpost"><br />
<br />
Bharti Airtel had reported disappointing numbers for 3QFY12 because of weak minutes of usage (MoU) and several one offs, which hit revenue and cost. However, strong ARPM growth is the key positive for the quarter. Revenue from African operations was in line but margins remained under pressure.<br />
<br />
As we all are witnessing Telecom spectrum scam and court orders of license suspension, telecom as industry is expected to consolidate from here. Also, Indian consumers are moving towards smart phone technology to use data on phones and this data usage will increase with time. Telecom players like Bharti Airtel would be big beneficiaries of this data usage growth and telecom sector consolidation. <br />
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Bharti has growth prospects in terms of 3G spectrum, DTH, African company it took over and potential growth in markets which are under penetrated. <br />
<br />
With no doubt, Bharti Airtel is the best stock to buy from telecom sector in India with stable business and good balance sheet numbers. The target stock price for Bharti Airtel over the one year time period would be around Rs.400. One who is looking for moderate appreciation with less volatility and least risk in stock markets may buy stocks of Bharti Airtel.<br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/02/stock-analysis-ongc.html" target=_blank>Stock Analysis – ONGC</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-82478395522055975452012-02-15T05:27:00.002+05:302012-02-22T06:08:37.187+05:30Stock Analysis – ONGCSome notes based on an equity research report from one of the leading stock broker about ONGC and stock price target for one year time period.<span id="fullpost"> <br />
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ONGC has reported 3QFY12 PAT of Rs.6740 crore, which includes a onetime gain of Rs.3140 crore from Cairn India as royalty disbursement.<br />
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Net realization for ONGC on domestic oil production has been at USD 45/barrel.<br />
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Upstream share of subsidy for 9 months stands at 38%.<br />
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Depreciation and amortization value stands at Rs.4530 crores. It is much higher due to dry well expenses on five deepwater wells.<br />
<br />
Production in Syria has come to a halt due to political tension and production in Sudan also declined sharply. This is good enough to cast a doubt on FY13 production growth, which may offset gains from higher crude oil prices for OVL. Decline/stoppage of production at ONGC Videsh Ltd (OVL) is a dampener in results and future numbers.<br />
<br />
Gas production in domestic business remains stable and subsidy should be a non- event, provided it continues at 38%. However, if the average subsidy for FY12 rises to 44% or higher, this could be a concern on stock price. Other risks could be higher than expected under- recoveries and lower than expected production from certain OVL assets.<br />
<br />
One may Buy Stocks of ONGC for target stock price of Rs.322 over one year.<br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-84235831087465950632012-02-10T08:24:00.002+05:302012-02-10T08:28:11.057+05:30Buy Stocks of Indian Hotels – Result Analysis 3QFY12This is a stock analysis and recommendation based on results by Indian Hotels in 3QFY12.<span id="fullpost"><br />
<br />
Indian Hotels has reported 3QFY12 standalone results which reflect domestic business only. Though revenue beats expectation of stock analysts, margins are lower than expectations.<br />
<br />
Revenue for 3QFY12 stands at Rs.530 crore. This is an increment of 9% yoy and 41% qoq. EBITDA is at 28% versus 15% in 2QFY12 and 30% in 2QFY11. Stock market analysts were expecting of EBITDA margin was 32%. <br />
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Lower EBITDA margin was due to higher license fees and increased staffing costs. Net debt of the company increased from Rs.3400 crore to Rs.3600 crore in 2QFY12.<br />
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Most important development for Indian Hotels would be turnaround of its international business. It contributes almost 33% to it’s total revenues. The turnaround in international business would add to it’s top line and bottom line that should be a good trigger for stock<br />
<br />
One may buy stocks of Indian Hotels with target price of Rs.90 to 95 over the time period of one year.<br />
<br />
You may like to read:<br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-44029502229561431372012-02-06T08:53:00.003+05:302012-02-09T18:11:29.084+05:30Buy Stocks of Bank of BarodaThis is a stock recommendation based on one of the stock brokers. The stock analysis behind this recommendation is as below.<br />
<span id="fullpost"> <br />
This "Buy Stocks" rating is on Bank of Baroda (BOB) with a target price of Rs.854 and is for the time period of over one year.<br />
•Bank has reported good performance for 3QFY12.<br />
•Net interest income (NII) stands at Rs.2650 crore which has increased 15.8% yoy and 3.5% qoq.<br />
•Net profit is at Rs.1290 crore; increased 20.7% yoy and 10.6% qoq.<br />
•Healthy NII growth was led by advance growth at 25.8% yoy even as reported net interest margin (NIM) was 8bps lower qoq to 2.99%.<br />
•Non – interest income has increased by 70% yoy.<br />
•Provisions increased 73.1% qoq. GNPA increased to 1.48% from 1.41% in 2QFY12.<br />
•International business drives growth. International business increased 44% yoy whereas domestic business was up a modest 19% yoy.<br />
•Domestic yield on advances contracted 13 bps qoq to 12.01% whereas cost of domestic deposits went up 6bps qoq to 6.90%. Consequently, domestic NIM contracted 16 bps qoq to 3.51%. However, this was marginally offset by improved international NIM at 1.64% from 1.42% in 2QFY12.<br />
•Bank’s advance growth is driven by SME credit. While retail credit increased marginally by 4.9% yoy to Rs.31050 crore, SME credit expanded by 27.2% to Rs.32100 crore. <br />
•As the provision increased 70% during the quarter, clarity is awaited on the asset quality. Also expect clarity on other income as it has increased substantially<br />
<br />
Reiterating recommendation: Buy Stocks of Bank of Baroda for the stock price target of Rs.854 over one year time period.<br />
<br />
You may like to read:<br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-33716811982143061642012-02-04T07:28:00.001+05:302012-02-09T18:12:01.275+05:30HCC - Stock Report and 3QFY12 Result UpdateStock report based on 3Q FY12 result update of HCC. Checkout if you should buy stocks of HCC or not.<span id="fullpost"> <br />
For 3QFY2012, HCC has reported poor set of results with, revenue and EBITDAM coming in line with stock analyst's estimates but earnings have plunged on account of expected future losses and cost revisions to the tune of Rs.166 cr. These provisions can not be exceptional in nature, as said by the company and pertain to normal course of business. <br />
<br />
The total outstanding order book stands at Rs.16,240 cr (excluding L1 orders of Rs. 1,574 cr) with order inflow of ~ Rs.840 cr in the quarter. There are concerns like slowdown in order inflow, high debt and stretched working capital which does not excites on stock.<br />
<br />
<b>Provisions leading to huge losses:</b><br />
On top line HCC’s revenues declined by 6.2% yoy to Rs. 946.0cr (Rs.1,009cr) against street's estimated Rs. 982.0 cr due to slowdown in order inflow and execution bottlenecks. EBITDAM came in at 11.7% (12.6%), a dip of 90bp yoy and marginally lower than street's estimated of 11.9%. <br />
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HCC has reported a loss of Rs. 130.4 cr vs. profit of Rs. 7.9cr in 3QFY11, against our estimate of loss of Rs. 25.5 cr owing to decline in revenue, EBITDA margin and provisioning of Rs. 166 cr. Interest cost came at Rs. 104.3cr, a decline of 39.4%/2.9% on yoy/qoq basis.<br />
<br />
<b>Outlook and valuation:</b> <br />
As per stock broker's research reports, they value on SOTP basis with a fair value of Rs. 32/share by assigning 6x FY2013E earnings (standalone). The company’s real estate venture has been valued on NAV basis and its BOT assets have been valued on FCFE basis. The fair value of stock implies an upside of at least 30% from current levels, but referring to concerns mentioned above, it is better to not to invest any fresh money in HCC stock.<br />
<br />
L&T, Sadbhav Engineering and IVRCL infrastructure look like better stocks to buy than HCC.<br />
<br />
You may like to read:<br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a><br />
<a href="http://www.indianstocksnews.com/2012/02/free-stock-market-tips-buy-hdil-for.html" target=_blank>Free Stock Market Tips – Buy HDIL for short term</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/large-cap-stock-to-buy-dr-reddys.html"target=_blank>Large Cap Stock To Buy - Dr. Reddy’s Laboratories</a><br />
<a href="http://www.indianstocksnews.com/2012/02/buy-stocks-of-bank-of-baroda.html" target=_blank>Buy Stocks of Bank of Baroda </a><br />
<a href="http://www.indianstocksnews.com/2012/02/irb-infra-stock-analysis-and-result.html" target=_blank>IRB Infra – Stock Analysis and Result Update</a><br />
<a href="http://www.indianstocksnews.com/2012/02/union-bank-stock-analysis-with-target.html" target=_blank>Union Bank – Stock Analysis with Target Stock Price</a></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-38126149374585088322012-01-24T07:52:00.000+05:302012-02-06T08:57:14.702+05:30Large Cap Stock To Buy - Dr. Reddy’s LaboratoriesI recently read thru stock research report from a stock broker on Dr. Reddy’s laboratories and thought to share key reasoning behind this stock recommendation.<span id="fullpost"><br />
<b>Growth Concerns</b><br />
For some time, there are a few doubts investors have regarding the growth prospects of Dr. Reddy’s beyond FY13 but these doubts look to be unwarranted. There are many growth triggers which still would be there for company beyond FY13. The growth triggers going forward could be limited competition, complex generic products in the US, Russia and in India; biosimilar products. These growth triggers and proprietary products would ensure and trigger growth of the company beyond FY13.<br />
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It looks like execution is the key concern over the next few years. Historically, execution record of the company in India ahs not been very good. But the company has delivered well on monetizing limited competition opportunities in the US. It has also been scaling up operations in Russia and the potential of its biosimilar products pipeline is yet to be realized fully in markets.<br />
<br />
<b>You may want to read:</b><br />
<a href="http://www.indianstocksnews.com/2012/01/stock-market-options-tips-buy-itc-call.html" target=_blank>Stock Market Options Tips - Buy ITC Call</a><br />
<a href="http://www.indianstocksnews.com/2012/01/share-market-stock-tips-buy-stocks-of.html" target=_blank>Share Market Stock Tips - Buy Stocks of Chambal Fertilisers</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/gloomy-indian-economy-no-worries-future.html" target=_blank>Gloomy Indian Economy? No worries. Future Can Be Ours</a><br />
<a href="http://www.indianstocksnews.com/2012/01/blue-chip-stock-analysis-infosys.html" target=_blank>Blue Chip Stock Analysis - Infosys</a><br />
<a href="http://www.indianstocksnews.com/2012/01/good-stock-to-buy-ril.html" target=_blank>RIL's Target Stock Price is Rs.650</a><br />
<br />
All above mentioned growth drivers would create growth opportunities for Dr. Reddy’s Laboratories even beyond FY13 for sure.<br />
<br />
<b>Stock Financials</b><br />
It is expected in the medium term that the earnings momentum for company would remain strong. Earnings estimates for FY13 has been increased by 6% based on higher sales in the US and rupee depreciation against the US dollar.<br />
<br />
Core earnings of the company are expected to grow at a strong CAGR of 27.7% over FY11-14. <br />
<br />
Estimations based on these numbers suggest the target stock price for Dr. Reddy’s Laboratories can be revised to Rs.1800 levels over one year. Hence, medium term investors may buy stocks of Dr. Reddy’s with one year time frame in mind.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-17867079153966069712012-01-21T00:59:00.000+05:302012-02-06T08:57:25.449+05:30RIL to buy back shares at Rs.870Reliance Industries Limited (RIL) is going to buy back it’s shares at Rs.870 per share.<span id="fullpost"><br />
The Board of Directors of RIL have approved the buyback of upto 12 crore fully paid up equity shares of Rs.10/- each at a price not exceeding Rs 870 per equity share, payable in cash, upto an aggregate amount not exceeding Rs.10,440 crore from the open market through Stock Exchange(s). This decision was made at its meeting held on January 20, 2012. <br />
<br />
RIL stock trades at CMP of Rs.792.65 as on 20th January, 2012. This maximum buyback price of Rs.870 indicates almost 10 % premium over CMP.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-75587653943910535542012-01-14T20:20:00.003+05:302012-02-06T08:58:19.408+05:30Blue Chip Stock Analysis - InfosysHere is stock analysis and report on Infosys published by Angel stock broking. Stock broker has recommended to buy stocks of Infosys for one year time period with target stock price.<span id="fullpost"> <br />
<b>Results Update</b><br />
In 3QFY2012, Infosys’ financial results were lower than stock broker's and market analyst's expectations on USD revenue front. But since rupee has been depreciating against USD for some time now, company's margin and bottom-line are improved.<br />
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Also, Infosys has lowered FY2012 USD guidance below stock analysts's expected estimates to 16.4% from earlier 17-19% yoy. The company has provided tepid revenue guidance for 4QFY2012 which is almost flat in terms of growth.<br />
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<b>Quarterly highlights</b><br />
For 3QFY2012, Infosys reported revenue of US$1,806mn, up 3.4% qoq, aided by 3.1% qoq volume growth and 0.8% qoq blended pricing growth. In INR terms, revenue came in at Rs9,298cr, up by whopping 14.8% qoq. The company’s EBITDA and EBIT margin increased by 265bp and 302bp qoq to 33.7% and 31.2%, respectively, largely gaining from INR depreciation. PAT came in at `2,372cr, up 24.5% qoq.<br />
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<b>Growth Outlook</b> <br />
Infosys management has provided cautious outlook for next year’s budgets. Management expects growth to be flat or marginally negative. Company is witnessing delays in ramp-ups of the deals being signed. This is reflected in the muted 4QFY2012 and FY2012 guidance provided by management. This clearly indicates challenging visibility in business volumes and management’s future expectations. <br />
<br />
The company would record USD revenue growth of 16.4% and 13.1% yoy in FY2012 and FY2013, respectively. Considering revised INR assumption would go downwards for 4QFY2012 and FY2013 to `51.0 and `50.0, respectively, following a steep 15% depreciation against USD over the last four months. This has led to INR revenue growth for Infosys to be higher than USD revenue growth at 24.1% and 16.5% yoy for FY2012 and FY2013, respectively. <br />
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<b>Stock Valuations</b><br />
Over FY2011–13E, we expect a CAGR of 19.2% and 19.0% in EBITDA and PAT, respectively. Valuing the company at 18x FY2013E of Rs.169. It is recommended to Buy Stocks of Infosys with a target price of Rs.3,047.<br />
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Detailed stock report from Angel stock broking can be <a href="http://web.angelbackoffice.com/research/archives/fundamental/company_reports/Infosys-3QFY2012RU-120112.pdf" target=_blank>downloaded here</a>.<br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-8116563723171247092012-01-14T06:59:00.000+05:302012-02-06T08:58:28.176+05:30RIL's Target Stock Price is Rs.650Recently I came across news about stock report on RIL from Investment banking firm Morgan Stanley. Morgan Stanley has revised its target stock price for Reliance Industries from Rs. 921 to Rs.650. Investment banking firm has sighted fall in RIL’s gross refining margin and production volume as primary causes.<span id="fullpost"><br />
As per Morgan Stanley, the gross refining margins for RIL were at peak in 2011 due to shut downs in Japan and low production volumes in China. They are expecting that Japan will ramp up its production in 2012 which was devastated due to tsunami in 2011. Also, China and India as well are adding up new refining capacities in 2012 to increase production. This could push margins lower. <br />
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RIL’s Exploration and Production unit had produced 80 mmscmd in Dec.09 against 40 mmscmd today. It’s a fall of 50% in production. The world is fearful of European debt crisis which has potential to slow down world economies thereby reducing demand for fuel and that would lead to drop in fuel prices. Also, RIL has sold 30% stake in its exploration and production business to BP. So revenues would be lesser from this unit in RIL’s balance sheet for next financial year. <br />
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RIL have huge pile of cash which it is not using for expansion of it’s core refining business but will be used to establish Reliance Industries as a big player in other sectors such as Retail, SEZ, Telecom, Financial services, Hotels, Media and Processed Food. As per Morgan Stanley analysts, this move will make Reliance Industries a conglomerate to which, financial markets apply some discount when it comes to it’s share price.<br />
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Read more: <a href="http://www.indianstocksnews.com/2011/12/ril-giant-seating-on-huge-cash.html" target=_blank>RIL - A giant seating on huge cash</a> <br />
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Establishing these other businesses in Retail, telecom and other domains mentioned above will take time to bare fruits in terms of profits for Reliance Industries.<br />
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Considering all above reasons, Morgan Stanley stock research analysts have evaluated the RIL stock and has reduced the target stock price to Rs. 650. <br />
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In my opinion, long term investors should consider RIL a good stock to buy with intrinsic value and growth at discounted stock price and wait for the investment to bear the fruits as part of long term investment portfolio. One should definitely buy stocks of RIL if it comes around target stock price given above (Rs.650) by investment banking firm. <br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-64767255502724204972012-01-12T22:19:00.000+05:302012-01-12T22:19:04.755+05:30Infosys shares fall 8.4 percent - why?Infosys Ltd. has cut it’s annual revenue growth guidance second time this year. Also it has warned lower spending from it’s clientele in euro zone due to ongoing debt crisis in Europe. This particular forecast was good enough to send the Infosys stock down by more than 8 percent today on Bombay Stock Exchange.<br />
<span id="fullpost"> <br />
Most of the European clients are refraining from awarding new projects due to their own problems which are out of concerns over European debt crisis and macroeconomic headwinds developing in European and American economy. Infosys earns its majority of revenues from US and Europe.<br />
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Infosys has provided dollar guidance down to $7029 million – 7033 million against $7060 million - $7090 million in last quarter. Earnings Per Share (EPS) stands at Rs. 41.51 against Rs.33.36 QOQ. Full year EPS has been hiked to Rs.147.13. <br />
<br />
Also, Infosys management has provided a forecast about future which is not encouraging for investors. As per them, problems in US and European debt crisis could affect company’s growth in near future.<br />
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<b>You may want to Read:</b> <br />
<a href="http://www.indianstocksnews.com/2012/01/trend-that-could-be-threat-to-indian.html" target=_blank>Trend That Could be Threat To Indian Economy</a> <br />
<a href="http://www.indianstocksnews.com/2012/01/buy-shares-of-sobha-developers-for-one.html" target=_blank>Buy Shares of Sobha Developers for one year</a><br />
<a href="http://www.indianstocksnews.com/2012/01/best-stocks-to-buy-in-2012.html" target=_blank>Best Stocks To Buy Now in 2012</a> <br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-30156421656026487532011-12-13T07:21:00.000+05:302011-12-26T07:11:56.728+05:30RIL - A giant seating on huge cash<div dir="ltr" style="text-align: left;" trbidi="on">I just read a news article in ET that mentions 25 billion dollars of cash pile that RIL has as idle money! It’s a huge cash pile that RIL have and people are certainly interested in knowing how RIL is going to deploy this huge cash for future growth. Does this fact indicate you to buy stocks of RIL? <br />
<span id="fullpost"><br />
<strong>Expectations from RIL</strong><br />
People are awaiting on announcements from RIL and specially from Mr. Mukesh Ambani about future investments and growth plans but company seems pretty tightlipped about it. ET article tries to explain and analyze the situation. You may read the article on <a href="http://economictimes.indiatimes.com/special-report/mukesh-ambanis-ril-not-buying-despite-its-huge-pile-of-cash/articleshow/11087027.cms" target="_blank">RIL here</a>. <br />
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<strong>Retail Business</strong><br />
As I have been following RIL andrelated developments for some time now, I can see a few things that I have understood. One of it is Reliance Retail. In Past 4-5 years, RIL has tried different formats of retail businesses such as hyper mart Reliance Retail (Grocery), Reliance Fresh (Veg./fruits), Reliance shoes, Reliance Gold. I have been to all these format stores except Reliance Gold and they had decent setups. These experiments could grow/consolidate further and ultimately become the growth engines for RIL as everyone knows the humongous retail market size of India.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqHn7hPo-5zXaXsebnlJfKFQmihqXgEsNbkY5mK4B44m279HGtuPZGyHo7hBkGqH-8WZBRgG0FlSWGjLBtBI47teI_faYqp4kySzMMvhMaMtOwqXeFkCu7ptCKN8McMZ-txv2m6DVgA7VI/s1600/Reliance+Retail+Subsidiaries.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="55" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqHn7hPo-5zXaXsebnlJfKFQmihqXgEsNbkY5mK4B44m279HGtuPZGyHo7hBkGqH-8WZBRgG0FlSWGjLBtBI47teI_faYqp4kySzMMvhMaMtOwqXeFkCu7ptCKN8McMZ-txv2m6DVgA7VI/s400/Reliance+Retail+Subsidiaries.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Reliance Retail Subsidiaries</td></tr>
</tbody></table><strong>Petroleum Retailing</strong><br />
Another forgotten business from RIL stable is petrol retailing business (petrol pumps) which was in doldrums due to regulated pricing of petrol in India. But now as pricing is being freed slowly from regulations and being tied up with international markets, RIL would be a huge beneficiary of this and I am sure RIL would be preparing for that. Expansion of current refining capacities and addiction of refining business by means of buying out other refining companies globally could be another growth plan of company. <br />
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<strong>Broadband Internet and Telephony</strong><br />
One more exciting development I read some time back was about RIL setting up Broadband/4G internet capabilities and telecommunication (VOIP) business for which, I believe, RIL has started the preparations. Being a techie, engineer and internet junkie apart from stock market investor, I can imagine what a market size is available for Broadband/high speed internet business in India. RIL could make a big bang in it as Reliance communications did few years back in mobile phones. I believe they are in process of setting up high speed Wifi hubs across the country to facilitate broadband business. <br />
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<strong>Opinion</strong><br />
RIL must be exploring bunch of opportunities as next growth engines with that huge cash pile, which would eventually happen. Even if it does not happens soon, it huge cash will keep drawing a few thousand crores every year just by means of FD’s/CD’s and MF investments. And this very fact indicates that one should buy stocks of RIL for long term safe capital growth. Feel free to express your thoughts on this. </div></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-32289639055418041932011-07-28T03:56:00.000+05:302011-07-28T03:56:15.179+05:30Suzlon Energy – Turnaround large cap stock<div dir="ltr" style="text-align: left;" trbidi="on">Does recent stake sale in one of it’s subsidiaries by Suzlon Energy and it’s recent financial performance makes it an attractive large cap stock to buy? Let’s have a look at the facts and numbers to figure it out.<br />
<span id="fullpost"> <br />
Recently Suzlon Energy sold it’s 26.06 stake in Netherlands-based Hansen for about Rs 830 crores. No doubt this stake sale is a positive development for Suzlon Energy as it is saddled with high debt in its’ books. <br />
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Also, it is expected that Suzlon would consolidate REpower (another wholly owned subsidiary) with it. This consolidation would give Suzlon access to funds worth Rs 1,700 crore of REpower. Also expected is realization of about Rs 1,000 crore receivables from a debtor. These developments would ease some of company’s debt worries. Founder and CMD of Suzlon Group has explicitly said that this deal is in line with their strategy to optimise and strengthen the balance sheet. <br />
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With above mentioned sources of funds of Rs 3,500 crore when combined with estimated cash flow from operating activities of Rs 1,000 crore in 2011-12 will enhance cash availability to Rs 4,500 crore. This will provide good liquidity for company to meet obligations.<br />
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“Suzlon needs to raise funds for the potential redemption of legacy FCCBs of $480 million (Rs 2,100 crore, at conversion price Rs 76-98 per share) which is due in FY13/14,” as per analyst at JP Morgan. About Rs 1,770 crore are due for redemption in the next financial year.<br />
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Company has almost Rs 10,200 crore (as on March 2011) of debt. These sources of funds should certainly prove positive for profits, as it will help reduce debt levels as well as interest costs.<br />
<b><br />
Suzlons’ returning to profitability?</b> <br />
Company posted losses for two consecutive years. Stock market analysts are expecting the company to report about Rs 500 crore worth profits in the current financial year and Rs 900 crore in 2012-13. The order book of company has also seen increments that would give it a better revenue visibility. Suzlon could be well on its way to turnaround as a profitable company again very soon. <br />
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Company is expected to grow it’s revenue almost in the tune of 30% this financial year (3400 MW wind power equipments against 2372 MW last year). <br />
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<b>Stock Valuations</b><br />
Suzlon posted net profits of Rs. 309.82 crores for quarter of Mar ‘11. Earlier in Dec.’10 quarter it had posted net profit of just Rs. 1.2 crore. This profitable turnaround would soon start translating in stock price appreciation. As mentioned above, analysts are expecting profit of Rs 500 crores this FY and Rs 900 crores next FY. If everything goes as per this, Suzlon could provide good returns to it’s investor’s in next 3 - 4 years time frame. One may buy stocks in small quantities at every dip for long term portfolio.<br />
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</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-3241741854187205232011-05-27T05:44:00.002+05:302011-05-27T05:46:01.470+05:30DLF results analysis - Is it worth buying stocks?<div dir="ltr" style="text-align: left;" trbidi="on">DLF recently announced it’s numbers and DLF stock took a beating in stock market by tripping 3%. What is beneath the numbers and should you be out there buying stocks of DLF?<br />
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DLF stock was hammered by 3% on Thursday. Investment banking firms like Goldman Sachs and JP Morgan are certainly not bullish at all after looking at DLF numbers. DLF reported FY 2011 revenues at Rs 9560 crores, a tad below market expectations but way below market expectations when looked at EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) front. Rs 3,750 crore against an expectation of Rs 4,590 crore. <br />
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Sales volume was at 10 million square feet or Rs 6,600 crore against revised of 12 million square feet (initially it was 15 million sq. feet). In FY 2010, DLF had sold Rs.7000 crore worth of property. This shows decline in sales Y-O-Y. Company’s net pofit has declined by 5%. DLF management has given a guidance for residential real estate sales of 11-12 million square feet, mainly thru plotted development. Guidance for leasing is of 2.5-3 million square feet of commercial real estate in FY 2012 which would add Rs 1,300 crore to annual revenues.<br />
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Net debt company declared is at Rs 21,400 crore of which Rs 5,000 crore is earmarked for disinvestments. Rs 10,500 crore is for rent business and Rs 6,000 crore is for development business. <br />
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DLF, as a stock can turn profitable only if company manages to take action for reducing it’s debt, launching new projects, higher rentals from it’s commercial rent business. Company has thought of higher plotting based development for FY 2012-13 so it can reduce the cycle time and increase the margins.<br />
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It will not see any of the above happening in immediate to near term and so, the stock may see lower levels of stock price from current levels. It is advisable to not to buy stocks of DLF at this stage and wait for some more time till we see any positive triggers. <br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-11349758854152934052011-05-02T00:59:00.000+05:302011-05-02T00:59:46.449+05:30Stock Analysis of SAIL - Buy Stocks for long term<div dir="ltr" style="text-align: left;" trbidi="on">Stock analysis of SAIL's 4Q FY2001 results released recently. <br />
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SAIL’s net sales declined 0.1% Y-OY to Rs 11,945cr in 4Q FY2011. This is below stock analyst's general estimates of Rs 13,307cr. The decline in net sales was modest but net profit declined 27.7% Y-O-Y to Rs 1,507 cr. Important reasons being increase in prices of key inputs (coking coal) and rising human resources costs. <br />
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The stock has witnessed it's 52-week high of Rs 234. It has corrected from this year high stock price to current price at Rs 160. It is a significant correction for blue chip stock like SAIL.<br />
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<b>SAIL's 4Q FY2011 financial result highlights</b>:<br />
<ul style="text-align: left;"><li>Net sales declined 0.1% Y-O-Y to Rs 11,945cr in 4Q FY2011 well below stock analyst's estimates of Rs 13,307cr. The company produced saleable steel of 3.43mn tonnes (+5.0% Y-O-Y) during the quarter.</li>
<li>EBITDA decreased 24.4% Y-O-Y to Rs 2,340cr, while EBITDA margin declined 631bp Y-O-Y to 19.6% due to increase in prices of key inputs (mainly coking coal) and rise in staff costs.</li>
<li>Net profit declined 27.7% Y-O-Y to Rs1,507cr, slightly below our estimate of Rs1,566cr in 4QFY2011. For FY2011, its net profit declined 27.7% Y-O-Y to Rs4,881cr mainly on account of weaker demand of flat products and increase in staff expenses (+40.8% Y-O-Y).</li>
<li>The company spent Rs11,280cr in FY2011 (+6% Y-O-Y) for expanding capacity at its existing plants. The company plans to spend capex of Rs14,300cr in FY2012 mainly towards expanding its capacity and modernizing its existing plants.</li>
<li>As of March 31,2011, the company’s debt and cash balance stood at Rs20,162cr and Rs17,000cr, respectively.</li>
</ul><b>Stock Valuation</b> <br />
The stock is available at P/E of 12 and price to book value ratio of 1.98. These valuations are reasonable and stock looks undervalued although not cheap. Commodity prices (like coking coal) for key input for business are expected to ease in future. SAIL stock is at attractive valuations and one may buy stocks of this large cap blue chip company foe long term investing.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-51635455584989073092011-04-30T04:40:00.000+05:302011-04-30T04:40:45.285+05:30Stock Analysis Post Results - Wipro<div dir="ltr" style="text-align: left;" trbidi="on">Recently WIPRO announced their 4th quarter results. Checkout stock analysis to know what the latest numbers mean to you as an investor in WIPRO. <br />
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Wipro reported better than expected revenue but wasn't any better on operational front. Revenue for IT services is at US$1,400mn, up 4.2% Q-O-Q. However, EBIT margin for the IT services segment declined by 14bp Q-O-Q to 22.1%. Revenue guidance for IT services segment for 1Q FY2012 stands disappointing at US$1.394bn–1.422bn. Wipro is clearly lagging it's competitors like Infosys and TCS and is undergoing organizational restructuring so you may expect weaker volumes. <br />
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For 4Q FY2011, Wipro registered 6.0% Q-O-Q growth in revenue to Rs.8,302cr. Volume growth of the IT services segment came in tepid at 1.9% Q-O-Q. Revenue from IT products and consumer care and lightening segments grew by 2.3% and 19.1% yoy, respectively. Overall EBIT margin declined by 52bp qoq to 17.8% on the back of a decline in EBIT margin in all the three business segments. EBIT margin of the IT services, IT products and consumer care and lightening segments declined by 14bp, 99bp and 29bp qoq to 22.1%, 3.6% and 12.0%, respectively. PAT came in at Rs.1,375cr Q-O-Q, up 4.3% Q-O-Q.<br />
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<b>Stock valuation </b><br />
In FY2011, Wipro added incremental revenue of only US$830mn. Compare this to Infosys, TCS and Cognizant (in CY2010) who adding whopping US$1.23bn, US$1.83bn and US$1.31bn resply. The company guidance for revenue growth for 1Q FY2012 is with only 1.2% growth on the upper end. <br />
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Revenue CAGR for IT services will remain weak at 17.3% (dollar terms) over FY2011–13E vs. Infosys, TCS and HCL Tech with much higher rates of 23–24%. You may value the company at 17x FY2013E EPS of Rs.28.8. one may buy stocks of WIPRO for one year modest target of Rs. 490-500.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-69190468731171871632011-03-17T07:27:00.003+05:302011-03-17T07:40:13.076+05:30Buy stocks of Reliance Industries - Motilal Oswal<div dir="ltr" style="text-align: left;" trbidi="on">Buy stocks of <a href="http://www.indianstocksnews.com/2011/03/large-cap-stock-to-buy-reliance.html">Reliance Industries</a> is the recent recommendation from Motilal Oswal, one of the stock trading and brokerage firms. Checkout the <a href="http://www.indianstocksnews.com/2011/03/large-cap-stock-to-buy-reliance.html">stock valuations of RIL</a> as on today.<br />
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Stock research team of Motilal oswal has released this “buy stocks” recommendation on Reliance Industries. The reason behind this stock recommendation is simple. They are expecting some positive fundamental changes in Reliance industries. And so at current stock price of RIL, it is definitely a good stock to buy.<br />
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Trailing 12-month (TTM) EPS for Reliance industries is at Rs 59.95 per share (as in Dec 2010). At current stock price of Rs.1044, P/E (price-to-earnings ratio) was 17.4. The latest known book value of RIL Rs.392.21 per share. Price-to-book value comes at 2.66. The dividend yield of the stock is at 0.67%.<br />
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Sighting the positive fundamental changes, <a href="http://www.indianstocksnews.com/2010/01/reliance-industries-stock-analysis.html">RIL is a good large cap stock to buy</a> from long term perspectives. <br />
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Read more: <a href="http://www.indianstocksnews.com/2010/01/reliance-industries-stock-analysis.html" target="_blank">stock analysis of Reliance Industries</a></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-83948318429466335812011-03-12T09:13:00.003+05:302011-03-12T09:18:18.464+05:30Large cap stock analysis-Bank of Baroda<div dir="ltr" style="text-align: left;" trbidi="on"><a href="http://www.indianstocksnews.com/2011/03/good-banking-stock-to-buy-bank-of.html">Bank of Baroda</a> (BoB) is a state owned bank with operations in 26 countries. Let's have a look at it's <a href="http://www.indianstocksnews.com/2011/03/good-banking-stock-to-buy-bank-of.html">stock analysis</a> to figure out why it is a <a href="http://www.indianstocksnews.com/2011/03/good-banking-stock-to-buy-bank-of.html">good large cap stock to buy</a> from public sector banking space.<br />
<a name='more'></a>The bank has significant overseas operations and portfolio. Bank primarily operates in Gujarat and Maharashtra. Almost one third of its branches are in these two states. Off lately, Bank of Baroda is increasing its network in other states of country as well. Bank has 3,200 branches and is planning to add another 300 by March 2012. It also has centralized banking system in almost all of its branches in India.<br />
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Lending portfolio of Bank of Baroda comprises mainly of large corporate loans. Retail, small and medium enterprises and mid-corporate segments are the growth drivers bank management is targeting for future growth. BoB also earns revenues from other sources such as guarantees and letters of credits to earn commissions on it. The bank also sells third-party products and gold coins. It had reported a 14% rise in other income.<br />
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<b>Stock Financials:</b><br />
Net profit of bank has grown at average 31% y-o-y for the past four quarters due to high net interest income growth. Net interest income for bank grew by average 32% in the same time. It is the difference between interest earned and interest expended by the bank. Net interest margin, one of the very important parameter for profitability of any bank, was at 3% for the past three quarters. Almost 96% of the bank's assets are based on floating rate so rise in the borrowing costs is passed on to borrowers and bank can maintain its Net Interest Margin.<br />
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Net non-performing assets (NPA or bad loans) are at only around 0.3-0.4% for the past eight quarters. In near future, most public sector banks are expected to report higher bad loans by using system-based bad loan recognition. BoB is already recognizing all bad loans through the core banking system so it would not have any big surprises when other public sector banks declare their system based bad loans.<br />
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<b>Future Growth Prospects:</b><br />
Government has decided to infuse fresh capital in nine public sector banks including Bank of Bardoa. A higher capital availability would provide a cushion for potential losses and would protect lenders of the bank. The bank is in better position to maintain its operating margins as all its loans are linked to the base/prime-lending rate. Bank has a 36% share of current and saving account balances. This helps the bank in lowering the impact of rising interest rates.<br />
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<b>Stock Valuations:</b><br />
At current stock price of Rs.892, the stock trades at 2.1 price to book value (P/BV) which shows fair valuation considering its growth potential. The bank has better asset quality (loan portfolio) than most other banks which makes low risk and a good bet for investors. One may consider to buy stocks of Bank of Baroda for long term investment portfolio.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-83155905497201806502011-03-08T07:48:00.003+05:302011-03-08T07:57:37.253+05:30Stock analysis - Areva T&DCut your exposure of Areva T&D (Areva) is the recommendation by stock broker Angel stock broking.<br /><span id="fullpost"><br />Areva T&D (Areva) reported better-than-expected results for 4QCY2010. Revenue for the quarter increased by 14% yoy to Rs.1,327cr and (est. Rs.1,177cr) and PAT grew by 29% yoy to Rs.88cr (est. Rs.75cr). Order inflow for the quarter was down by 9% yoy due to delays in customer ordering and price fall. Going forward, the pricing scenario is expected to be grim on account of delayed ordering and increasing competition. Angel stock broking has recommended to reduce exposure.<br /><br /><span style="font-weight: bold;">Strong volume driven growth: </span><br />Despite the price erosion on orders accrued during CY2009 and CY2010, Areva managed to register 14% yoy rise in revenue to Rs.1,327cr backed by strong volume growth. Areva also managed to retain its leadership position for the third year, even with the fall in market size and prices.<br /><br />EBITDA margin for the quarter also expanded by 142bp to 13.4% as fixed manufacturing and production costs were spread over large volumes. Expanded margin and higher sales volume enabled the company to post a 29% yoy increase in PAT.<br /><br /><span style="font-weight: bold;">Outlook and valuation:</span><br />Post the acquisition of Areva’s global T&D business by Alstom-Schneider Electric consortium, the two business segments viz., transmission and distribution, are likely to be separated and operated independently by Alstom Grid and Schneider Electric, respectively. The modalities of the split and the associated valuations are yet to be finalised. Absence of large orders from central utilities and pricing pressures has been adversely affecting the company’s revenue and profitability growth.<br /><br />Management continues to maintain a cautious outlook given the pricing pressures and expects the current scenario to last for the next couple of quarters. At current stock price of Rs.267, the stock trades at 27.5x CY2011E EPS. It is advisable to reduce on the stock with a target price of Rs.243.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-54713647598534000742011-03-04T04:44:00.005+05:302011-03-04T05:10:53.842+05:30Stock analysis - Glenmark PharmaceuticalsStock analysis of a large cap stock, Glenmark Pharmaceuticals Limited (GPL). Check out from medium to long term investment perspective.<br /><span id="fullpost"><br />Glenmark Pharmaceuticals is an India-based pharmaceutical company engaged in R&D of new molecules. Glenmark Pharma is focused in the areas of inflammation, including asthma/ chronic obstructive pulmonary disease (COPD), metabolic disorders, dermatology, anti-infectives, respiratory, gynecology, pediatrics, diabetics, Oncology. The Company has 12 manufacturing facilities in four countries that lists India, Latin America, Central Eastern Europe and Semi Regulated Markets of Africa/Asia/ Commonwealth of Independent States (CIS). It also has five R&D centers, three in India and two overseas.<br /><br />Company also has good presence in US generic drugs market on it’s own and on partnership model. Company’s business in US is growing at very healthy growth rates. Revenues there have grown at CAGR of 89% in past 4 years. Moreover, company is focusing on specific niche areas in US with lesser competition that would further fuel the growth.<br /><br />Glenmark pharma is also concentrating on Europian markets. They have acquired a Czech company Medicamenta which operates in Czech republic and Slovakia with branded generic drugs. Company has entered in Romania, Bulgaria, Poland and central, eastern and western European countries.<br /><br />In Indian pharmaceutical markets, Glenmark is one of the very strong players with R&D capabilities and products at par with Ranbaxy, Dr. Reddy’s and SUN pharma. Dermatology has been the strong niche for Glenmark in India and it is carrying the same strength in international markets too. <br /><span style="font-weight:bold;"><br />Stock valuation</span><br />Considering the past growth records of company, we can expect that company sales revenue would grow at ~20% (CAGR) for next 3 years. Net profits for company had grown at over 20% CAGR. With acquisitions in Europe and growth with new product development in pipeline, we can safely expect net profits to grow at least at CAGR 25% for next 3 years. The EPS for FY 12 and FY 13 can safely be estimated at Rs.20 and Rs. 25 against full year estimated EPS of 16 in FY11. <br /><br />At current stock price of Rs. 300, the stock trades at P/E of 10 times estimated FY13 EPS. You may buy stocks of Glenmark for 2 years with target price of Rs. 400</span>Unknownnoreply@blogger.com