 Buy Anant Raj Ind; target of Rs 147: Sushil FinancePublished on Thu, Aug 18, 2011 at 15:18 | Source : Moneycontrol.com Updated at Thu, Aug 18, 2011 at 15:32 5038 Investors following Anant Raj Ind. Share this News with them.
Sushil Finance is bullish on Anant Raj Industries and has recommended buy rating on the stock with a target of Rs 147 in its August 16, 2011 research report. "Anant Raj Industries, during the quarter ended Q1FY12, Anant Raj's Revenue is down by 19% YoY but up by 32.2% QoQ to Rs.838 Mn. Residential business accounts for 75.9% of the total income followed by Rental income of 23.7% and rest from Ceramic Tiles business. The company's rental income for the quarter is at Rs.198.3 Mn vs Rs.181 Mn of Q1FY11. Rent from IT business is Rs.69 Mn while that from the hotel business is ~Rs.72Mn and the rest from the commercial property. The company's rental income is likely to increase further from Q3FY12 as two more projects - Kirti Nagar mall and Tricolor Hotel will start contributing. The leased area for Q1FY12 stands at 1.1MSF which is flat QoQ but up by 10% YoY. The company has received rent for ~600,000 SF of the Manesar IT park." "The company's real estate income (Residential) for Q1FY12 is at Rs.635.7 Mn vs Rs.835.5 Mn of Q1FY11 and Rs.438.2Mn of Q4FY11. The company's revenue from the real estate business has stabilized as it is focusing more towards residential business. Sector 91 has contributed Rs.550 Mn to the real estate income, followed by Manesar project contributing Rs.55 Mn and Kapashera Rs. 18.9 Mn. The company has also launched its Neemrana project of 1.8 MSF in Q1FY12 and has seen a booking of 100 flats out of the total 2000 flats. Its revenue is likely to be recognized from Q4FY12. The company's operating profit is down by 13.3% YoY to Rs.493.2 Mn. Its Operating profit margin is at 58.9% vs 55.0% of Q1FY11. Its Net Profit is down 23.4% YoY but up by 14.4% QoQ to Rs.351 Mn. The Net Profit Margin for Q1FY12 stands at 41.9% vs 44.3% of Q1FY11. Relatively lower Net Profit is mainly because of increase in interest expense and lower other income." "The company has added three land parcels in FY11 for immediate execution at a cost of ~Rs.7bn resulting in increase in the debt. Delay in the Hauz Khas and Bhagwan das project would be compensated by huge sales volume generated by these three projects. Despite of sharp increase in debt, the D/E ratio stands at just 0.2 for the company." "Anant Raj's Q1FY12 results are very much in line with our expectations. The company is now likely to witness stable revenue, as its exposure towards the residential business is increasing. ARIL is likely to develop ~11 MSF in next three-four years in the residential segment, thus providing huge potential for growth. In FY11 the company has accounted for a rental income of Rs.760.5 mn vs Rs.489Mn of FY10. The Kirti nagar mall project of the company has been delayed and is likely to fetch rentals from Oct-2011. We have not taken into account any revenue from the Hauz Khas and Bhagwan das project till FY13 till any further clearance is obtained. We maintain our BUY rating on the stock with a NPV based price target of Rs 147," says Sushil Finance research report. Institutional holding more than 40% in Indian cos Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment Attachments : AnantRaj_Sushil_180811.pdf
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