India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Showing posts with label Indoco Remedies. Show all posts
Showing posts with label Indoco Remedies. Show all posts
Monday, April 16, 2012
Saturday, November 05, 2011
Thursday, October 20, 2011
Tuesday, July 27, 2010
Saturday, June 19, 2010
Friday, April 30, 2010
Tuesday, May 05, 2009
Friday, May 09, 2008
Wednesday, April 30, 2008
Saturday, February 02, 2008
Wednesday, January 30, 2008
Tuesday, January 01, 2008
Thursday, August 30, 2007
Wednesday, July 04, 2007
Thursday, May 17, 2007
Friday, March 09, 2007
From the Research Desk
Indoco Remedies Ltd. Investment Update
Indoco Remedies Limited’s (Indoco) Q2 FY07 results were in line with expectations. Sales recorded a growth of 27.9% to Rs794mn driven by a 14% growth in the domestic market to Rs623mn and 136% growth in the export regulated market to Rs125mn. Operating profit margin (OPM) declined by 90bps to 17.5% as new R&D facility at Rabale, Baddi and La Nova are yet to operate at full capacity leading to higher overheads. Higher depreciation and interest outgo resulted in lower earnings growth of 23.1% to Rs96mn, translating into an annualized EPS of Rs32.5. For H1 FY07, Indoco has witnessed a PAT growth of 26.1% to Rs179mn, translating into an EPS of Rs30.3. With Q4 being the strongest quarter for the company (contribution of 40% to profitability), we are confident that Indoco would achieve our EPS estimate of Rs36.9 for FY07.We estimate Indoco to witness earnings CAGR of 41.6% to Rs633mn over FY06-08. At Rs280, the stock is trading at 8-9x FY07E EPS of Rs36.9 and 5-6x FY08E EPS of Rs51.5 after factoring in the dilution emerging from the merger of SPA Pharma with Indoco. We believe the stock is undervalued and deserves higher multiple considering contribution from high margin US market, increased traction in contract manufacturing as well as clarity on strong domestic market growth. We maintain BUY with a target price of Rs391 from a 12-month perspective.
Wednesday, November 01, 2006
BRICS PCG Research
Bank of India
CMP: Rs 167 Target: Rs 186 (upgraded from Rs 170) BUY
Hitting the high notes
Bank of India (BOI) has churned out an excellent Q2FY07 performance, posting the best results among PSU banks. As guided by the bank after the FY06 results, net interest income (NII) continues to grow at a very robust pace, well ahead of expectations. An improved yield on funds and a relatively lower increase in cost of funds led a 47% growth in NII. This together with the healthy 18% growth in non-interest income (ex-treasury) to Rs 3bn led to a 61% spurt in net profit. Within loans, lending towards the retail, agriculture and SME segments recorded strong YoY growth of 56%, 22% and 27% respectively. BOI expects these segments to continue to drive asset growth and boost yields.
The management is targeting a growth of 20% in deposits (25% in low-cost deposits) and 25% in loans in FY07. Based on our dividend discount model (DDM) we value the bank at Rs 186, an upward revision from Rs 170 earlier to incorporate the robust financial results. BUY.
Tulip IT Services
CMP: Rs 362 Target: Rs 457 (upgraded from Rs 383) BUY
Power packed performance
Tulip IT Services reported a very strong Q2FY07 financial performance, much ahead of our expectations. Revenues in the quarter grew sequentially by 29.7% to Rs 1.9bn on the back of 59.4% growth in the corporate data services (CDS) segment. Operating margins expanded by 280 bps to 15.5% as the share of CDS revenues increased to 34% of total revenues. Net profit grew by 46.5% to Rs 202.5mn, a slower pace than the 58.6% QoQ increase in operating profit due to higher depreciation and tax costs during the quarter. In view of the exceptional performance, we are raising our estimates for FY07 and FY08 and accordingly upgrading our target price to Rs 457 (from Rs 383). BUY.
K S Oils
CMP: Rs 176 Target: Rs 218 BUY
Fuelled for success
KS Oils (KSO) has clocked an outstanding performance during Q2FY07 with 79% YoY growth in revenues to Rs 2.3bn and a 213% spike in net profit to Rs 111mn. Better volumes due to enhanced capacity utilisation and increased realisations from a heightened focus on the retail segment drove sales during the quarter. Operating profit has grown 140% YoY to Rs 161mn, accompanied by an improved margin at 7.1% from 5.3% a year ago. The margin growth was fuelled by increased realisations, lowered operating costs (particularly power) and better working capital cycles. Net profit margins also rose 75% from 2.8% to 4.9% this quarter. We retain our projections for FY07 and FY08, and thus recommend a BUY with our initial target price of Rs 218.
Indoco Remedies
CMP: Rs 293 Target: Rs 410 BUY
Healthy growth, in line with estimates
Indoco Remedies' Q1FY07 results are largely in line with our estimates. Though the sales growth in the quarter exceeded our expectations, net profit was marginally below our estimates due to higher finance charges and depreciation. Net sales in Q1FY07 grew by 37% to Rs 726.5mn as against Rs 529mn in Q1FY06, driven by 26% growth in domestic sales and a 103% rise in exports to regulated markets. Domestic sales contributed about 81.3% to the topline whereas exports to regulated markets contributed about 12% in Q1FY07. These exports have grown more than anticipated (103% as against 60%) on account of a swelling customer base as well as an increase in the products supplied. Operating margins for the quarter have fallen by 90 bps YoY due to an increase in raw material cost as a percentage of sales. We believe the margins in the coming quarters will stabilise at about 20% as the exports gain further momentum.
At the current market price of Rs 293, the stock is trading at P/E multiples of 7.4x on FY07E and 5.9x on FY08E which we believe is very attractive. With an expected ROE of 23% in FY08 and earnings growth of about 30% we believe the stock should trade at a higher multiple. We therefore recommend a BUY with a target of Rs 410.
JK Cements
CMP: Rs 191 Target: Rs 315 BUY
Pillar of strength
JK Cements' (JKCL) Q2FY07 results are in line with our expectations. Sales have grown by 30% YoY from Rs 2.1bn to Rs 2.7bn. The company sold 8.13 lakh tonnes of grey cement and 60,900 tonnes of white cement in Q2FY07. Net profit has risen substantially from Rs 49mn to Rs 340mn in Q2FY07 mainly due to better realisations as compared to the last year. Operating margins have also jumped from 13.7% in Q2FY06 to 23.7% in Q2FY07. The EPS for the current quarter stands at Rs 4.9 versus Rs 1 in Q2FY06.
The company's expansion plans and power projects are on schedule and it has concluded the acquisition of JayKayCem, a wholly owned subsidiary. Further, the outlook on cement demand and prices remains upbeat, with a Rs 3-5 price hike per bag expected in the near term. We thus maintain a strong BUY on JKCL with our target of Rs 315.
Download here
Thanks Vishesh
Subscribe to:
Posts (Atom)