Showing posts with label IIFL. Show all posts
Showing posts with label IIFL. Show all posts
Friday, 27 August 2010
Wednesday, 30 June 2010
USHA MARTIN - BUY - TARGET 102 (IIFL)
CMP Rs81, Target Price Rs102, Upside 25.2%
UML is well placed to reap the benefits of a massive capex undertaken over the last three years. Volumes are set to more than double over the next two years while improvement in raw material integration would add further value.
We expect UML to witness a volume growth of 75.5% yoy to 0.56mn tons in FY11 and a further 30.8% yoy to 0.73mn tons in FY12. With steady steel prices globally, we expect topline to jump 55% yoy to Rs28.9bn in FY11 and thereafter 25% yoy to Rs36.2bn in FY12. With the increase in captive consumption of both metallic and raw materials like iron ore and thermal coal, OPM for the company is expected to increase 412bps yoy to 23.4% in FY11. The company’s balance sheet is set to improve following the successful QIP issue in FY10 and the steady cash flows expected over the next two years. Debt/Equity ratio is expected to remain flat at 0.7x as the company has announced a further capex of Rs12bn over the next three years.
At the CMP of Rs81, the stock trades at a P/E of 5.3x and an EV/EBIDTA of 3.8x FY12E, which is at a huge discount to the larger players. We believe that the valuation gap will reduce and recommend a BUY rating on Usha Martin
USHA MARTIN - BUY - TARGET 102 (IIFL)
CMP Rs81, Target Price Rs102, Upside 25.2%
UML is well placed to reap the benefits of a massive capex undertaken over the last three years. Volumes are set to more than double over the next two years while improvement in raw material integration would add further value.
We expect UML to witness a volume growth of 75.5% yoy to 0.56mn tons in FY11 and a further 30.8% yoy to 0.73mn tons in FY12. With steady steel prices globally, we expect topline to jump 55% yoy to Rs28.9bn in FY11 and thereafter 25% yoy to Rs36.2bn in FY12. With the increase in captive consumption of both metallic and raw materials like iron ore and thermal coal, OPM for the company is expected to increase 412bps yoy to 23.4% in FY11. The company’s balance sheet is set to improve following the successful QIP issue in FY10 and the steady cash flows expected over the next two years. Debt/Equity ratio is expected to remain flat at 0.7x as the company has announced a further capex of Rs12bn over the next three years.
At the CMP of Rs81, the stock trades at a P/E of 5.3x and an EV/EBIDTA of 3.8x FY12E, which is at a huge discount to the larger players. We believe that the valuation gap will reduce and recommend a BUY rating on Usha Martin
Thursday, 8 April 2010
IDFC was facing stiff resistance at levels of Rs168-170 during last one month. Recently, the stock broke this crucial resistance level and closed above it with good volumes. Further it also closed above its 100-day DMA. It is expected that the stock will rally in the medium term and traders can buy the stock in the range of Rs 170-173 for a target of Rs185. A stop loss of Rs 166 can be maintained. (Source : IIFL).
(Source: Yahoo)
Thursday, 25 June 2009
Buy GIPCL - Target 130 : IIFL
IIFL has maintained its buy rating on Gujarat Industries Power Co. (GIPCL), with 12-month price target of Rs 130, in its report dated June 23, 2009.
"GIPCL's proposed 250MW expansion has been delayed, and now the management expects to commission unit-1 in 3QFY10ii as against 1QFY10ii, which is reflected in our forecasts. At CMP, GIPCL is trading at 0.9x FY10ii BV and 10x FY10ii P/E. We maintain 'BUY', with 12-month price target of Rs 130," says IIFL's research report.
Thursday, 28 May 2009
Buy ICICI Bank with SL of Rs 690: IIFL
MUMBAI: India Infoline has advised traders to buy ICICI Bank on dips upto Rs 697 with stoploss of Rs 690 for a short-term period of 1-3 days.
“ICICI Bank has seen a steady uptrend from the levels of Rs 252 in March 2009. This was a panic bottom and the stock rallied higher without a retest of this low. On the daily charts, the price movements appear to have formed a higher bottom formation. In last few trading sessions the stock is facing stiff resistance around the levels of Rs 715-720. We expect the stock to breakout from the above levels and attempt the level of Rs 740 in the near term. The bullish formation is confirmed after the stock gave a close above its short-term moving averages. Traders can buy the stock at current levels and on dips up to the levels of Rs 697 with a stop loss of Rs 690 for a short-term target of Rs 740 in the coming trading sessions,” said India Infoline report.
(Note: The above recommendation is a short-term trading idea for a time period of 1-3 days.)
“ICICI Bank has seen a steady uptrend from the levels of Rs 252 in March 2009. This was a panic bottom and the stock rallied higher without a retest of this low. On the daily charts, the price movements appear to have formed a higher bottom formation. In last few trading sessions the stock is facing stiff resistance around the levels of Rs 715-720. We expect the stock to breakout from the above levels and attempt the level of Rs 740 in the near term. The bullish formation is confirmed after the stock gave a close above its short-term moving averages. Traders can buy the stock at current levels and on dips up to the levels of Rs 697 with a stop loss of Rs 690 for a short-term target of Rs 740 in the coming trading sessions,” said India Infoline report.
(Note: The above recommendation is a short-term trading idea for a time period of 1-3 days.)
Sunday, 24 May 2009
Punj Lloyd – Market Performer
Punj Lloyd’s (PLL) current order book of Rs219bn, 2x trailing twelve months revenues, will be executed over the next year.
CMP Rs116, Target Rs122, Upside 5.2%
Punj Lloyd’s (PLL) current order book of Rs219bn, 2x trailing twelve months revenues, will be executed over the next year. This coverage ratio has been steadily declining from 3.1x in Q4 FY07 to 2x now. Its order inflow has also fallen steeply by 31% during Q3 FY09 to Rs22bn, despite higher bidding activities by the company. 18% of its order is facing slippages, which adds to our concerns on the stock. 33% of its order book is from the infrastructure segment followed by pipeline at 32% and process plants at 31%.
Slowing investment activities in infrastructure development in some of PLL’s key markets and segments raises concerns about future order book growth. We expect investments in the oil E&P to remain subdued over the next 12-18 months as crude prices are currently lower than the breakeven price for new projects. We expect PLL’s revenue and earnings growth will be restricted to 5% and 4% CAGR over FY09-11 respectively. We believe it trades fairly at 8.6x FY10E EPS. We initiate coverage with Market Performer and target price of Rs122.
See full report
CMP Rs116, Target Rs122, Upside 5.2%
Punj Lloyd’s (PLL) current order book of Rs219bn, 2x trailing twelve months revenues, will be executed over the next year. This coverage ratio has been steadily declining from 3.1x in Q4 FY07 to 2x now. Its order inflow has also fallen steeply by 31% during Q3 FY09 to Rs22bn, despite higher bidding activities by the company. 18% of its order is facing slippages, which adds to our concerns on the stock. 33% of its order book is from the infrastructure segment followed by pipeline at 32% and process plants at 31%.
Slowing investment activities in infrastructure development in some of PLL’s key markets and segments raises concerns about future order book growth. We expect investments in the oil E&P to remain subdued over the next 12-18 months as crude prices are currently lower than the breakeven price for new projects. We expect PLL’s revenue and earnings growth will be restricted to 5% and 4% CAGR over FY09-11 respectively. We believe it trades fairly at 8.6x FY10E EPS. We initiate coverage with Market Performer and target price of Rs122.
See full report
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