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

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

Coal India Ltd - IPO Company report

Infosys Technologies Ltd Quaterly Report Result Update

Axis Bank Ltd Quaterly Report Result Update

Tecpro Systems Limited

Tecpro Systems Limited (TSL) provides turnkey solutions in material handling, ash handling, balance of plant ("BoP") and engineering, procurement and construction ("EPC") contracts. Over the years TSL has developed in-house capabilities for providing comprehensive solutions in material handling and ash handling systems. TSL has received the highest number of orders for coal handling plants during the Eleventh Five Year Plan (2007-2012), (Source: RHP, www.cea.nic.in). Leveraging on its capabilities in coal handling, ash handling and established project management track record, TSL has begun to focus on turnkey BoP contracts in thermal power generation sector

Investment Rationale  

Ø        Current order-book of INR 23.1bn, 1.6x its FY10 revenue on consolidated basis shows quick conversion of order-book to sales and growth outlook for core sector like, Coal, Steel, Power, and Cement etc remains positive over medium to long term. TSL has received the highest number of orders for coal handling plants during the Eleventh Five Year Plan

Ø        Strong project management expertise and established track record of project execution

Ø        Strong in-house design and manufacturing capabilities

Ø        TSL revenue has grown on year-on-year basis by 119.5%, 58.4% and 82.0%, for FY08, FY09 and FY10, respectively and growth outlook continues to remain positive

Concerns

Ø        One of the BoP order worth INR 9,930Mn (43% of the current order-book) is subject matter of apex court judgement. Any adverse decision against TSL in these proceedings could result in loss to the extent of expenses incurred but not recovered from client and significant reduction in its order-book.

Ø        Top 10 customers constituted ~65% of TSL’s income from operations for FY08-10. Dependency on few clients for most of its revenue exposes TSL to the risk of loss of client / revenue which could materially impact its future business.

Ø        TSL had negative cash flows for last five fiscal years

Valuation

At the upper price band of 355, TecPro Systems Ltd is offered at 14.2x its FY10 EPS of INR 25 and 13.6x at the lower band, while its peers are trading at 16x – 20x. Given the robust outlook for core infrastructure sectors like Power, Cement, Steel, Coal, lower valuation and higher Return on Networth when compared with its peers, TSL valuation remain attractive, recommend SUBSCRIBE.

Banco Products (I) Ltd - Q1FY11 Result Update

Company background

Banco Products (I) Ltd (BPIL) is one of the leading auto ancillary companies. It manufactures sealing products (gaskets) and heat exchangers (radiators, intercoolers, oil coolers, etc). The company has strong client-base such as M&M, Maruti, Tata Motors, Indian Railways, Ashok Leyland, etc.

Result Highlights

Ø        BPIL reported a 30% YoY increase in standalone operating income to INR 1,133mn in Q1FY11.

Ø        Standalone EBITDA margin during the quarter increased 20bps to 25.4% however, net margin declined 160bps to 16.9%.

Ø        BPIL has recently made an acquisition (NRF) which has good brand name for its product range of marine heat exchangers and oil coolers in Europe.

Valuation

At the CMP of INR 107, the stock trades at a PE multiple of 7x as per our FY11 earnings estimate. We expect BPIL is available at very attractive price considering its strong client base and the acquisition of NRF. Assigning the target PE multiple of 9.4x for FY11, the stock offers the target price of INR 145 with potential upside of 35% from current level. We recommend our investors to Buy this stock for 12 months investment horizon.

Emami Ltd - Q1FY11 Result Update

Result Highlights

Emami Ltd posted revenue growth of 28% Y-o-Y to INR 2419.50 mn backed by a 25% volume growth.

The operating profit for the quarter was INR 658.50 mn, up 13% on a Y-o-Y basis.

PAT at INR 352.50 mn witnessed a growth of 127% as compared to the same quarter in the previous year.

Valuation

At the CMP of INR 438, the stock trades at ~17x its TTM EPS. Considering the strong growth in FMCG sector and the company’s expansion plans We recommend to ACCUMULATE the stock for a price objective of INR 505.

Tata Motors - Q1FY11 Result Update

Ø        Tata Motors Ltd (TML) reported a 64% YoY increase in consolidated operating income to INR 270.6 billion. It was however down 7% sequentially.

Ø        Consolidated EBITDA margins improved 850 basis points (bps) on an annual basis and 330 bps sequentially.

Ø        Consolidated net profit came at INR 19.8 billion much higher than expectations. This was in comparison to a loss of 3.3 billion last year.

Valuation & Outlook

At the CMP of INR 1015 the stock trades at ~11x FY11e EPS. The stock looks reasonably priced at this juncture and we would recommend investors to accumulate the stock with a price target of INR 1,120. (10x FY12e)

30 JULY UTV NEWS

HCL TECHNOLOGIES LTD QUATERLY REPORT

PUNJAB NATIONAL BANK QUATERLY REPORT

MARUTI SUZUKI INDIA LTD QUATERLY REPORT

ALLAHABAD BANK QUATERLY REPORT

QUATERLY REPORT OF CROMPTON GREAVES LTD

The market is likely to Fare decent in near term:- Gajendra Nagpal