Thursday, December 8, 2011

Latest Stock Recommendation By Smart Profit Financial Consultancy

SUN PHARMA

Sun Pharma an international specialty Parma company, with a large
Presence in the US and India, and a footprint across 40 other
markets.

Since the mid- nineties, they have used a combination of growth and
acquisition to drive growth. Important acquisitions have included
those of the US, Detroit-based Caraco Parma Labs and a plant at Halol
which now holds UKMHRA and USFDA approvals. The 2010 acquisition of
Taro Pharmaceuticals doubles our US business and brings us strengths
in dermatology and pediatrics.

Highlights of Q2FY12 consolidated financials

• Net sales / income from operations at Rs 1895 crores, registering a
growth of 42% over same quarter last year
• India branded generic sales at Rs 705 crores; excluding third
party manufacturing business, grew by 18% over Q2 last year
• US finished dosage sale at $ 175 million
• International formulation sales at $ 56 million.
• EBITDA margin at 41%
• Net profit at Rs 598 crores, equivalent to 32% net margin.

Sale of branded prescription formulations in India is at Rs 705 crores
for the second quarter, registering a growth of 15% over the same
quarter last year and accounting for 37% of total sales. Sun Pharma
holds 4.4% market share in the highly competitive pharma market, as
per latest AIOCD report.
Overall, the company is now ranked no. 1 based on share of
prescriptions with 7 classes of specialists.

We expect Sun Pharma`s EPS to register a 23.6% CAGR to Rs 27.9 over
FY2011-13E. We recommend a BUY rating on the stock at CMP 509 with a
target price of Rs 635.


PANTALOON RETAILS
Pantaloon Retail is the flagship company of Future Group serves
customers in 85 cities and 60 rural locations across the country
through over 15 million square feet of retail space. The collective
impact on business is staggering: Around 220 million customers walk
into our stores each year and choose products and services supplied by
over 30,000 small, medium and large entrepreneurs and manufacturers
from across India. This number is set to grow.

Pantaloon Retail strives to deliver superior, sustainable financial
performance and ensure clarity and reliability of financial
information shared.

PRIL`s net sales surged 13% YoY to Rs 29.1 billion in Q1FY12. EBITDA
rose 18.6% YoY to Rs 2.5 billion for the quarter. Gross margin
improved due to check on COGS (down 46bps YoY). Benefit of softening
in cotton prices is evident from lessening of COGS pressure as per our
expectation.

At CMP of 191, the stock is trading at 18.6x FY12E and 14.5x FY13E
EPS. We recommend a BUY with a target price of 276.


AXIS BANK

Axis Bank was the first of the new private banks to have begun
operations in 1994, after the Government of India allowed new private
banks to be established.

The Bank as on 30th September, 2011 is capitalized to the extent of
Rs. 412.32 crores with the public holding (other than promoters and
GDRs) at 52.07%.

The Bank's Registered Office is at Ahmadabad and its Central Office is
located at Mumbai. The Bank has a very wide network of more than 1281
branches (including 169 Service Branches/CPCs as on 31st March, 2011).
The Bank has a network of over 7591 ATMs (as on 30th September, 2011)
providing 24 hrs a day banking convenience to its customers. This is
one of the largest ATM networks in the country.

Axis`s Q2FY12 NII at Rs 20 billion (24% yoy and 16% qoq) was ahead of
consensus estimates (Rs 17.5-18.5 billion) and sharply way ahead of
our estimates.

Axis Bank for its high beta asset book, robust funding franchise and
valuations, for which we have already factored in stress-case loan
losses.

We expect Axis Bank to clock loan book growth of 24.5% for FY12F and
23.6% for FY13F.
Our target price of Rs 1,550 implies P/E of 15.3x, for an ROA of 1.2%
and ROE of 17.6%.

LARSEN & TOUBRO

Larsen & Toubro Limited (L&T) is a technology, engineering,
construction and manufacturing company. It is one of the largest and
most respected companies in India's private sector.

More than seven decades of a strong, customer-focused approach and the
continuous quest for world-class quality have enabled it to attain and
sustain leadership in all its major lines of business.

Larsen & Toubro Ltd has informed BSE regarding a Press Release dated
November 03, 2011 titled "L&T (Oman) Wins Rs. 875 Cr Orders;
Twin Breakthroughs in International Urban Infrastructure"

Larsen & Toubro (L&T) has executed the first order of dry shielded
canisters from Transnuclear Inc, USA an Areva Company for storage of
radioactive waste. Apart from these 12 units of canisters, L&T is
ready to dispatch additional 2 canisters for the next order.

We believe L&T is best placed to benefit from the gradual recovery in
the capex cycle, given its diverse exposure to sectors, strong balance
sheet and cash flow generation, as compared to its peers, which
grapple with issues such as strained cash flow, high leverage and
limited net worth and technological capabilities.

Due to the recent correction in prices, the stock is trading at PE of
12.3x FY2013E earnings, adjusted for subsidiary value, which is lower
than its historical PE of 15-20x. Hence, we believe the recent
correction provides a good opportunity to BUY.


BHARAT HEAVY ELECTRICAL (BHEL)
An integrated power plant equipment manufacturer and one of the
largest engineering and manufacturing companies in India in terms of
turnover.
BHEL engaged in the design, engineering, manufacture, construction,
testing, commissioning and servicing of a wide range of products and
services for the core sectors of the economy, viz. Power,
Transmission, Industry, Transportation, Renewable Energy, Oil & Gas
and Defence greatest strength is our highly skilled and committed with
workforce of 46,748 employees.

With 15 manufacturing divisions, two repair units, four regional
offices, eight service centres and 15 regional centres and currently
operate at more than 150 project sites across India and abroad.

The Company has posted a net profit of Rs. 14120.30 million for the
quarter ended September 30, 2011 as compared to Rs. 11422.80 million
for the quarter ended September 30, 2010. Total Income has increased
from Rs. 86526.40 million for the quarter ended September 30, 2010 to
Rs. 107653.70 million for the quarter ended September 30, 2011.

BHEL is expected to register 13.5% and 12.2% CAGR growth in top line
and bottom line till FY13. ROE is estimated to be 27.7% and 24.7% for
FY12 and FY13 respectively. Hence, considering healthy order book,
strong execution capabilities and expectation of policy reforms in
power sector, we recommend BUY rating on the stock at CMP 282 with a
price target of Rs 380.


STERLITE INDUSTRIES (INDIA) LIMITED
Sterlite Industries India Limited (SIIL) is the principal subsidiary
of Vedanta Resources plc, a diversified and integrated FTSE 100 metals
and mining company, with principal operations located in India and
Australia.
Sterlite is India's largest non-ferrous metals and mining company and
is one of the fastest growing private sector companies.
Net sales of the company, however, registered a growth of over 68 per
cent at Rs 10,133.84 crore during the quarter under review from Rs
6,028.98 crore of the July-September quarter of FY'11
Sterlite has continually demonstrated its ability to deliver major
value creating projects, offering unparalleled growth at lowest costs
and generating superior financial returns for its shareholders. At the
same time, it ensures that its expansion projects meet high
conservative financial norms and do not place an unwarranted burden on
its balance sheet and financial resources.
At the CMP of Rs 106, the stock trades at 7.8x FY13E EPS and 4.8x
FY13E EV/ EBITDA. We continue to value the company on SOTP basis
applying FY13 EV/ EBITDA for the metals businesses (with 15% holding
company discount for HZL and Balco) and DCF method for power business.
Our target price to Rs 162, while maintain Accumulate rating on the
stock.
NTPC Limited

NTPC, India's largest power company, was set up in 1975 to accelerate
power development in India.

It is emerging as an 'Integrated Power Major', with a significant
presence in the entire value chain of power generation business.

NTPC ranked 341st in the '2010, Forbes Global 2000' ranking of the
World's biggest companies.

With a current generating capacity of 34,854 MW, NTPC has embarked on
plans to become a 75,000 MW company by 2017.

Net profit of NTPC rose 15.03% to Rs. 2424.12 crore in the quarter
ended September 2011 as against Rs. 2107.38 crore during the previous
quarter ended September 2010.
Sales rose 18.39% to Rs. 15377.54 crore in the quarter ended September
2011 as against Rs. 12989.29 crore during the previous quarter ended
September 2010.

NTPC may receive `600cr as compensation for scrapped hydro project in
Uttarakhand.

The country`s largest power generator NTPC has chalked out ambitious
plans of taking its capacity to over 1, 28,000 MW by 2032, the total
installed capacity of NTPC is 34,854 MW.

We maintain our BUY recommendation on the stock at CMP 166 with a
target price of Rs 210.


LUPIN
Headquartered in Mumbai, India, Lupin Limited today is an innovation
led transnational pharmaceutical company producing a wide range of
quality, affordable generic and branded formulations and APIs for over
70 countries in the world. Lupin remains amongst the prolific R& D
spenders in the industry which we believe bodes
well for its growth.

Lupin remains the 5th largest Generic player in the U.S. in terms of
prescriptions (IMS Health). Lupin emerged as the market leader (No. 1
by market share) in 13 out of 29 generic products in
the U.S. and 28 out of these 29 generic products rank in the Top 3
positions by market share

The drug firm had posted a net profit of Rs 215 crore for the same
period last fiscal, Lupin said in a statement.
Net sales grew 23.57 per cent to Rs 1,741.7 crore during the second
quarter from Rs 1,409.4 crore in the same period last fiscal.

Lupin is investing Rs.450 cr on capacity expansion, ramping up sales
force and launching new products.
The company has already expanded its reach from 890 medical
representatives 3 years back to 3,500 at present and is looking to
hire more employees this fiscal in India.
Lupin has got a rich pipeline for various geographies. They have close
to about 145 filing for America as of now; and there could be a few
more by the end of this fiscal targeting annual revenue of $3 billion,
three times that of the revenue in 2010.

Intact growth in FY 2011-12 in the sector due to 1) Visibility
increase in launches in US. 2) OCs launch from Sep 2012E.3) Minimal
threat of generic competition to Suprax.

We believe the recent fall in stock is a good opportunity point as
long term drivers are intact.
Valuing stock is trading at 20.7x and 15.6x FY2012E and FY2013E
earnings, respectively.
We recommend 'BUY' on the stock at CMP 448 with a target price of Rs.
510.
SYNDICATE BANK

Syndicate Bank was established in 1925 spanning over 80 years of
pioneering expertise, the Bank has created for itself a solid customer
base comprising customers of two or three generations.

Syndicate Bank recorded 20% increase in its operating profit for the
Half Year ended Sep 2011. The operating profit was ` 1634 crore for
the period ended Sep 2011 as against ` 1366 crore recorded during the
corresponding period of the previous year. Net Interest Income
increased from ` 2072 crores for the Half Year ended Sep 2010 to `
2424 crore for Sep 2011 registering growth of 17%. Other income
increased by 20% from ` 447 crore to ` 536 crore YoY mainly due to the
increase in fee based income and trading profit. The net profit for
the Half Year ended 30.09.2011 is ` 666 crore as against ` 503 crore,
recording 32% growth over the Half Year ended of 30.09.2010.

The Global Business of the Bank was ` 255286 crore as on 30.09.2011 as
against ` 212027 crores as on 30.09.2010 registering a growth of 20%.
The Deposits stood at ` 141083 crore registering a growth of 22% and
Advances at ` 114203 crore registering a growth of 19% as on 30th Sep
2011

Syndicate loan books expected to grow by 20%. Thus the stock looks
attractive investment opportunity.

Since its 52 week high of Rs 145 has been declining in a well defined
channel lows and highs. At its current low of Rs 100, the stock has
underperformed Sensex & Bankex & the close to its book level.
The stock is cheap at 1.4x estimated FY12 book value. Thus studying
all the aspect we recommend a strong BUY with the target of 160.

--
Learn how to make money being online visit:

http://www.thewealthypages.com/index.php?key=Y2lkPW5zdTk2NzkxJndhPUp0M252UHlw

Free Ways To Make Money Online visit:

http://www.thewealthypages.com/index.php?key=Y2lkPW5zdTk2NzkxJndhPUp0M252UHlw

You received this message because you are subscribed to the Google Groups "Make Money Being Online" group.

No comments:

Post a Comment