Prabhudas Lilladher, an equity stock broker, has come up with a stock report on Titan Industries with 'Buy Stocks' recommendation. Checkout the target stock price.
Titan Industries posted PAT (Profit after tax) of Rs.144 crores in Q4FY12 which is 72% growth over PAT in same quarter last year. Watch sales was up 14% for Q4 and 15% for FY12. Jewellery volumes declined 7% for Q4 but it was up 5% for full year. Titan industries added 41 retail stores during Q4FY12. Now the total number of stores is 827 stores across India. Growth in Eyewear business was 17% in sales. Strong volume growth in Watches division is a key highlight of the quarter.
Titan Industries is following strategy of expanding its presence in Lifestyle segments and categories where demographic dividend can be most leveraged. Titan Industries is one of the top stock pick by Prabhudas Lilladher stock reseach team in the Retail space with ‘Buy Stocks’ rating. Target stock price for next one year is Rs.290 (28x FY14 expected). Price volatility in Gold may act as a deterrent for volume growth for company.
Showing posts with label stocks to buy. Show all posts
Showing posts with label stocks to buy. Show all posts
Buy Shares of Sobha Developers for one year
One of the good stocks to buy in construction space is Sobha Developers. Investment research team from one of the stock broker firm, Geojit BNP Paribas, has recommended investing in stocks of Sobha Developers for one year with target stock price.
The investment rationale behind this stock recommendation is:
Stocks To Buy Now in 2012 - Noida Toll Bridge
Concerns
If company slows down the execution of it’s projects and also fails to reduce the debt burden as per guidance, it could dent the profits and guidance on numbers provided by company.
Stock Financials
At CMP of Rs. 208.5, the stock trades at P/E of 12.7 with dividend yield being 1.44%. Book value of the stock is Rs. 189.33 which makes Price to Book value ratio of 1.1. This shows that Sobha developers is available at good stock valuations.
Based on above facts and details, the stock broker firm has advised to buy stocks of Sobha developers for one year with target stock price of Rs.275.
The investment rationale behind this stock recommendation is:
- The company has sold 0.82 million sq ft in 3QFY12, a growth of 16% yoy but 12.5% lower qoq. This shows decline in quarterly sales but it was due to the lack of significant new project launches.
- Company had provided guidance of 3-3.5 Million sq. feet of sale for FY12. It has sold 2.42 million sq ft in first 9 months of FY12 which is an increase of 14% yoy. The company looks like is on track with it’s guidance for sales.
- The revenue guidance out of guided sales were expected to be Rs.1500 crore. The company already had sold worth of Rs.1240 crore by December.
- Average sales price has increased 2% qoq for company except in National Capital Region. At the same time, sales price has increased 16.5% yoy.
- The company has sold 1.02 million sq ft in the newer projects launched in 2HFY12. It is around 31% of these projects and about 45% of its 3Q sales were from the projects launched in 2HFY12.
- The company expects to launch around 0.9 million sq ft in Chennai in 4QFY12.
- Also, the company has provided a guidance for debt reduction of Rs.350 crore in this fiscal year. Debt reduction can be considered as key catalyst for the stock in near future.
Stocks To Buy Now in 2012 - Noida Toll Bridge
Concerns
If company slows down the execution of it’s projects and also fails to reduce the debt burden as per guidance, it could dent the profits and guidance on numbers provided by company.
Stock Financials
At CMP of Rs. 208.5, the stock trades at P/E of 12.7 with dividend yield being 1.44%. Book value of the stock is Rs. 189.33 which makes Price to Book value ratio of 1.1. This shows that Sobha developers is available at good stock valuations.
Based on above facts and details, the stock broker firm has advised to buy stocks of Sobha developers for one year with target stock price of Rs.275.
Small cap stock to buy : Agre Developers
Ashish Chugh, author of Hidden Gems, recently talked about two multibagger small cap stocks to buy on CNBC-TV18. Agre Developers is one of the two small cap stocks he recommended.
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Agre Developers as a "small cap stock to buy".
Agre Developers is a new company which came into existence just about 20-25 days back. It is a Pantaloon group company where there was a scheme arrangement wherein the mall management and mall development business of Pantaloon Retail was demerged and put into a separate company called Agre Developers. Shareholders of Pantaloon Retail were given one share of Rs 10 of Agre Developers for every 20 shares of face value of Rs 2.
As things stand today, the equity of Agre Developers is about Rs 11 crore and the shareholders of Pantaloon Retail became the shareholders of Agre Developers via the scheme of arrangement. The idea behind this demerger was to enable growth of the mall development and mall management business as a separate entity.
The current price is about Rs 48-49, equity of Rs 11 crore which means that the marketcap of the company is about Rs 50-55 crore. So you have a Pantaloon group company available at a marketcap of about 50-55 crore. Now, if you see the financials, for the first six months of the current financial year, the revenues are about Rs 45 crore, the company made a net loss of about Rs 1 crore. With annualized revenues of about Rs 90 crore, the marketcap is just about Rs 55 crore, which is not even one time of revenue.
If you take a look at the balance sheet, the equity is about Rs 11 crore and reserves are close to Rs 250 crore, which means a book value of about Rs 240. As against the book value of Rs 240, you have the stock available at less than Rs 50, which is just about 20% of the book value.
If you see it in totality, they have a debt of about Rs 85 crore on the balance sheet, which means an enterprise value of about Rs 130-140 crore. As against the enterprise value of Rs 140 crore, the company has got a gross block of about Rs 215 crore and also capital work in progress of Rs 40 crore. Out of this gross block of Rs 215 crore, about Rs 80 crore is hard asset in the form of land and building. This is something which gives a lot of comfort as far as the downside in the stock is concerned.
Other small cap stocks discussed recently
They also currently manage about six malls while they have about 24 malls, which will be operational in FY12. In the next one-two years, you can see a massive scalability of operations. Now, this is probably the only listed company involved in mall management business which is a niche business. Being the only listed company and not having any peer group comparison, the valuation, I believe, is just a perception.
From these levels, the downside looks extremely restricted but given the scalability and the management behind it, this could indeed turn to be a real multibagger if held on for maybe three-five years. If you see the shareholding pattern of the company, promoters hold close to 44%. There is a huge amount of institutional holding in the company - institutions hold close to 37% of the company. A lot of these institutional investors may not be interested in a Rs 50-55 crore marketcap company.
It is possible that you may see unloading from some of those institutional investors, which maybe an opportunity for the HNI and retail investors. From these levels, the downside looks extremely restricted. There is scalability, which is going to come in the next couple of years and from these levels, the probability of going wrong in the stock seems to be very little.
Another hidden gem by Ashish Chugh - Fedders Lloyd
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Agre Developers as a "small cap stock to buy".
Agre Developers is a new company which came into existence just about 20-25 days back. It is a Pantaloon group company where there was a scheme arrangement wherein the mall management and mall development business of Pantaloon Retail was demerged and put into a separate company called Agre Developers. Shareholders of Pantaloon Retail were given one share of Rs 10 of Agre Developers for every 20 shares of face value of Rs 2.
As things stand today, the equity of Agre Developers is about Rs 11 crore and the shareholders of Pantaloon Retail became the shareholders of Agre Developers via the scheme of arrangement. The idea behind this demerger was to enable growth of the mall development and mall management business as a separate entity.
The current price is about Rs 48-49, equity of Rs 11 crore which means that the marketcap of the company is about Rs 50-55 crore. So you have a Pantaloon group company available at a marketcap of about 50-55 crore. Now, if you see the financials, for the first six months of the current financial year, the revenues are about Rs 45 crore, the company made a net loss of about Rs 1 crore. With annualized revenues of about Rs 90 crore, the marketcap is just about Rs 55 crore, which is not even one time of revenue.
If you take a look at the balance sheet, the equity is about Rs 11 crore and reserves are close to Rs 250 crore, which means a book value of about Rs 240. As against the book value of Rs 240, you have the stock available at less than Rs 50, which is just about 20% of the book value.
If you see it in totality, they have a debt of about Rs 85 crore on the balance sheet, which means an enterprise value of about Rs 130-140 crore. As against the enterprise value of Rs 140 crore, the company has got a gross block of about Rs 215 crore and also capital work in progress of Rs 40 crore. Out of this gross block of Rs 215 crore, about Rs 80 crore is hard asset in the form of land and building. This is something which gives a lot of comfort as far as the downside in the stock is concerned.
Other small cap stocks discussed recently
They also currently manage about six malls while they have about 24 malls, which will be operational in FY12. In the next one-two years, you can see a massive scalability of operations. Now, this is probably the only listed company involved in mall management business which is a niche business. Being the only listed company and not having any peer group comparison, the valuation, I believe, is just a perception.
From these levels, the downside looks extremely restricted but given the scalability and the management behind it, this could indeed turn to be a real multibagger if held on for maybe three-five years. If you see the shareholding pattern of the company, promoters hold close to 44%. There is a huge amount of institutional holding in the company - institutions hold close to 37% of the company. A lot of these institutional investors may not be interested in a Rs 50-55 crore marketcap company.
It is possible that you may see unloading from some of those institutional investors, which maybe an opportunity for the HNI and retail investors. From these levels, the downside looks extremely restricted. There is scalability, which is going to come in the next couple of years and from these levels, the probability of going wrong in the stock seems to be very little.
Another hidden gem by Ashish Chugh - Fedders Lloyd
Small Cap Stock To Buy : Fedders Lloyd
Ashish Chugh, author of Hidden Gems, recently talked about two multibagger small cap stocks to buy on CNBC-TV18. Fedders Lloyd is one of the two small cap stocks he recommended.
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Fedders Lloyd as "small cap stock to buy".
Fedders Lloyd is a Delhi based company which is primarily into three business segments. They are into refrigeration and air-conditioning, engineering and structural steel business and also operate in the power transmission and distribution business. As far as the air-conditioning and refrigeration business is concerned, they provide air-conditioning solutions mainly for commercial establishments. They cater to institutions like railways, mining, defense segments and corporate sector.
In the engineering and steel structural business, they provide turnkey fabrication solutions for large industrial projects. In the power transmission and distribution business they provide EPC solutions for power transmission and distribution projects.
If you look at the financials of the company, FY10 sales were close to Rs 700 crore which were up by 50% compared to FY09. Profit after tax (PAT) was about Rs 40 crore, up from about Rs 11 crore which the company did in FY09. The financial year for this company is from July to June. In Q1 ended September of 2010, they have done sales of close to Rs 190 crore, up by about 18% over the same period last year. Profit after tax was about Rs 11.5 crore, up by about 35%.
EPS on trailing 12 months basis is close to Rs 15 which means at a current price of about Rs 75-76 the stock is traded at a P/E multiple of just about 5-5.5. If you compare this company with their peer group namely Blue Star and Voltas Ltd, you find a significant undervaluation to the peer group. Voltas and Blue Star, both command a P/E of close to 18-20 times and they have a marketcap of about 1.5 times of their sales.
Other small cap stocks discussed recently
The major concern about this company is the low dividend payout. Even though this company makes an earning of about Rs 15, this company pays only Re 1 dividend to the shareholders. That is a bit of a concern. The rerating for the stock could be on account of increased investor friendliness of the company. If they are able to sustain its earnings and grow at the same pace for which it has been growing for the past couple of quarters, I think we could see a rerating of the stock.
Another hidden gem by Ashish Chugh - Agre developers
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Fedders Lloyd as "small cap stock to buy".
Fedders Lloyd is a Delhi based company which is primarily into three business segments. They are into refrigeration and air-conditioning, engineering and structural steel business and also operate in the power transmission and distribution business. As far as the air-conditioning and refrigeration business is concerned, they provide air-conditioning solutions mainly for commercial establishments. They cater to institutions like railways, mining, defense segments and corporate sector.
In the engineering and steel structural business, they provide turnkey fabrication solutions for large industrial projects. In the power transmission and distribution business they provide EPC solutions for power transmission and distribution projects.
If you look at the financials of the company, FY10 sales were close to Rs 700 crore which were up by 50% compared to FY09. Profit after tax (PAT) was about Rs 40 crore, up from about Rs 11 crore which the company did in FY09. The financial year for this company is from July to June. In Q1 ended September of 2010, they have done sales of close to Rs 190 crore, up by about 18% over the same period last year. Profit after tax was about Rs 11.5 crore, up by about 35%.
EPS on trailing 12 months basis is close to Rs 15 which means at a current price of about Rs 75-76 the stock is traded at a P/E multiple of just about 5-5.5. If you compare this company with their peer group namely Blue Star and Voltas Ltd, you find a significant undervaluation to the peer group. Voltas and Blue Star, both command a P/E of close to 18-20 times and they have a marketcap of about 1.5 times of their sales.
Other small cap stocks discussed recently
In the case of Fedders Lloyd, this company trades at a P/E multiple of about 5-5.5 and as a marketcap to sales of just about 0.35. The marketcap of this company is just about Rs 235 crore and does sales of around Rs 700-750 crore. If you see the balance sheet, this company is asset rich. Out of the total gross block of about Rs 150 crore, they have a freehold land of about Rs 38 crore, a five acre plot which is located at a prime place in South Delhi which maybe very valuable as of now. The main trigger for rerating of Fedders Lloyd is not going to be the property but it is going to be sustainability of earnings.
The major concern about this company is the low dividend payout. Even though this company makes an earning of about Rs 15, this company pays only Re 1 dividend to the shareholders. That is a bit of a concern. The rerating for the stock could be on account of increased investor friendliness of the company. If they are able to sustain its earnings and grow at the same pace for which it has been growing for the past couple of quarters, I think we could see a rerating of the stock.
Another hidden gem by Ashish Chugh - Agre developers
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