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Wednesday, July 20, 2005

Kotakstreet - Andhra Sugar


Andhra Sugar Report

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Only a few posts are visible on the main page. If you do need see all the posts in July - Click on the link in the sidebar.  Hopefully the content on this site is useful. It would be nice if you guys can point me to other research report sites. Thanks for visiting. Do post your comments.

Motilal Oswal - Reliance Energy


Reliance Energy - Motilal Oswal Report

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Motilal Oswal - Indo Gulf Fertilizer


Motilal Oswal - Indo Gulf Fertilizer

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Sharekhan - ICI & Deepak Fertilizers


ICI India 
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs330
Current market price: Rs285

Strong numbers for quarter

Result highlights

  • ICI India reported a strong revenue growth of 25% for Q1FY2006 to Rs215.4 crore year on year (yoy). The growth was achieved on the back of a good growth in the businesses of both paints and chemicals.
  • The paint business grew at 24.5% yoy to Rs155 crore owing to an optimised product mix in favour of premium brands, thereby vindicating our assumption of a 25% growth in the business for FY2006.
  • The chemical business grew by 25% yoy to Rs89.7 crore, as its new polymer adhesive plant became operational in Q4FY2005 and textile chemicals (surfactants) reported a good growth.
  • The company's operating profit grew by 52.4% as the operating profit margin (OPM) expanded by 180 basis points yoy.
  • The profit after tax but before exceptional items went up by 37.7% yoy to Rs16.6 crore. 
  • At the current market price of Rs285 the stock is quoting at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 4.4x its FY2007E EBIDTA. We maintain our Buy call on the stock with a price target of Rs330 based on our sum-of-parts valuations.


Deepak Fertilisers & Petrochemicals Corporation 
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs126
Current market price: Rs71

Strong quarterly numbers

Result highlights

  • Deepak Fertilisers and Petrochemicals Corporation (DFPCL) reported a strong revenue growth for Q1FY2006 at 23.5% year on year (yoy) to Rs138.3 crore on the back of a strong growth in the ammonium nitrate business.
  • The ammonium nitrate business grew by 138% yoy on the back of a 93% year-on-year (y-o-y) growth in the volumes and the balance from the growth in realisations. DFPCL has shown intentions of expanding its capacity for ammonium nitrate looking at the supply shortage.
  • The operating profit grew by 49.5% as the operating profit margin (OPM) expanded by 480 basis points yoy.
  • The profit after tax went up by 72.2% yoy to Rs22.7 crore as the effective tax rate for the quarter was lower.
  • DFPCL's expansion plans are well on track with the isopropyl alcohol (IPA) plant expected to go on stream by the end of FY2006.