HSIL Ltd - Q2 FY11 Result Update

HSIL Ltd - Q2 FY11 Result Update

o    HSIL Ltd (HSIL)’s total revenue registered a growth of 29% YoY to INR 2220 mn backed by healthy growth in both building products and container glass segments. The results were marginally below our estimates.

o    The company’s operating profit at INR 449 mn, witnessed a 20% increase Y-o-Y. EBITDA margin at 20.84% registered a decrease of 121 basis points on a Y-o-Y basis.

o   PAT at INR 139 mn witnessed a growth of 52% as compared to the same quarter in the previous year. PAT margin at 6.46% has increased by 107 basis points Y-o-Y. EPS for the quarter stood at INR 2.53.

Valuation

At the CMP of INR 137, the stock trades at ~9x our consolidated FY12E EPS. We recommend to “BUY” the stock with a price objective of ~INR 178.

 Thanks & Regards,

Unicon Wealth Research

Banco Products (India) Ltd Q2FY11 Result Update

Banco Products (India) Ltd (BPIL) Q2FY11 Result Update

• BPIL reported a 21.5% YoY increase in standalone revenues to INR 1.2bn for Q2FY11.
• The company registered a decline of 920bps YoY in EBITDA margin to 20.0%.
• The company registered a decline of 910bps YoY in net margin to 12.3%.

Outlook & Valuation

The stock is currently trading at P/E multiple of 6.4x as per our FY12 earnings estimate. We maintain our Buy rating on this stock with a revised target price of INR 149.

Thanks & Regards,

Unicon Wealth Research

Mundra Port & Special Economic Zone Ltd Q2FY11 Result Update

Mundra Port and Special Economic Zone Ltd (MPSEZ) Q2FY11 Result Update

• MPSEZ reported a 26.3% YoY increase in revenues to INR 4.1bn for Q2FY11.
• The company registered a decline of 550bps YoY in EBITDA margin to 66.2% in Q2FY11.
• The company registered a decline of 180bps YoY in net margin to 50.0% in

Outlook & Valuation

The stock is currently trading at a PE multiple of 35x and 28x for FY11 and FY12 respectively as per our earnings estimate. We downgrade our rating from Accumulate to Hold on this stock with a revised target price of INR 175.

Thanks & Regards,

Unicon Wealth Research

Biocon Ltd Q2FY11 Result Update

Biocon Ltd Q2FY11 Result Update

Ø  Biocon registered strong 17% YoY increase in revenues with across-theboard growth in all core businesses like Insulins, Immunosuppressants,

 Statins and Branded Formulations. Quarter revenues increased by ~INR 1 bn to INR 6.8 bn on YoY basis.

Ø  EBITDA increased 27% YoY and 9% QoQ to ~INR 1448 mn in Q2 FY11. EBITDA margin improved by 164 bps to 21.3% on YoY basis, due to

 reduction in operating expense.

Ø  Net Profit also improved by 20.4% YoY and 16.3% QoQ to ~INR 892 mn. Slower growth was seen due to reduction in other income. PAT margin

 improved marginally to 13.1% from 12.8% same period last year.

Outlook & Valuation

Stock is currently trading at 22x its FY12E earnings. We rerate the stock to BUY with a fresh price target of INR 560.

Thanks & Regards,

Unicon Wealth Research

Tata Consultancy Services Ltd Q2FY11 Result Update

Tata Consultancy Services Ltd - Q2FY11 Result Update

Ø  Revenue at INR 92,864 mn; up 25% YoY & 13% sequentially.

Ø  EBITDA was at INR 27,762 mn, up 15% & 31%, QoQ and YoY respectively.

Ø  PAT was at INR 21,990 mn up 32%, YoY and 13%, QoQ.

Outlook & Valuation

Going forward, TCS expects clients to gradually increase their IT budgets. There is also a possibility that pricing could see a little bit of increase going forward. However, attrition remains a concern. With robust demand outlook we expect pricing to improve going forward especially in areas like enterprise solutions, cloud computing & consulting. However, there will be a concern about the uncertainty in global macro environment. With IT spending back and transformational deals making a comeback, TCS looks strong to deliver good performance in the coming quarters. At CMP of INR 986 the stock trades at 24x its FY11e EPS. We raise our price target from INR 1040 to INR 1148. Recommend Accumulate.

Thanks & Regards,

Unicon Wealth Research

Allahabad Bank Q2FY11 Result Update

Allahabad Bank Q2FY11 Result Update

Ø  Allahabad Bank (ALBK) delivered another strong quarter, with net profits increasing by 20% to INR 4025 Mn YoY.

Ø  The net interest income increased by 60% to INR 9690 Mn YoY. NIMs improved to 3.34% from 3.10% sequentially and 2.84% YoY..

Ø  ALBK’s Gross NPA declined to 1.77% in Q2FY11 from 1.78% YoY and Net NPAs increased to 0.56% from 0.35% YoY. ALBK is will capitalised with CAR at 13.49% wth Tier I Capital at 8.41%.

Outlook & Valuation

At the CMP INR 240 stock trades at 1.3x of its FY12E book value, we have BUY rating on the stock for 12-18 months target of INR 305.

Thanks & Regards,

Unicon Wealth Research

YES Bank Q2FY11 Result Update

YES Bank Q2FY11 Result Update

Ø  YES Bank net profits increasing by 58% to INR 1763 Mn YoY. This was supported by strong loan growth of 86% YoY to INR 303.5 Bn. The deposits grew by 107% YoY to INR 400 Bn.

Ø  The net interest income grew by 78% YoY to INR 3132 Mn. Bank’s net interest margins (NIMs) remained stable at 3% and CASA ratio to 10.1%.

Ø  Along with expansion of loan book the bank maintained a stable asset quality, with gross & net NPAs declining to 0.22% & 0.06% from 0.31% & 0.0.8% YoY respectively.

Outlook and Valuation

At the CMP INR 353 the stock trades at 2.6x of its FY12E Book Value., we have a BUY rating on the stock for target price of INR 461 for 12-18 months.

Thanks & Regards,

Unicon Wealth Research

Coal India Ltd - IPO Company report

Larsen & Toubro Ltd_Q2FY11 Result Update

Larsen & Toubro Ltd - Q2FY11 Result Highlights

L&T’s top-line came in line with Unicon’s expectation but positively surprised on margin front. While top-line at INR 83bn grew by 17.8% YoY, the operating profit was higher by 20% on yearly basis to INR 10bn. The operating profit margin, marginally improved by 20bps to 10.8%, (our estimate 10.2%). Due to sharp run up in base metal prices during the quarter, going forward, we expect its margin to ease. Improvement in margin was led by reduced cost, as percentage of sales, in cost of materials and sub-contracting charges. Net profit after tax at INR 6.9bn was higher by 19.6% on yearly basis before extraordinary items.

Outlook and Valuation

Having regard to the performance and order intake during 1HFY10, management guidance of 25% growth in its order-book and 20% topline growth seems achievable for FY11.

Currently, stock trades at 22.7 its FY12e earning per share of 88.7 and price to sales ratio of ~1.8x. Upgrade to Accumulate for price target of 2,250.

Thanks & Regards,

Unicon Wealth Research

Infosys Technologies Ltd Quaterly Report Result Update

Axis Bank Ltd Quaterly Report Result Update

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