Buy JP Associates, Shiv Vani Oil: Sharekhan

Sharekhan has come out with its report on various stocks.

Maruti Suzuki India: Our estimates for FY2012 and FY2013 remain unchanged at Rs93.5 and Rs109.7 respectively. Based on the current demand dynamics, the company is facing aggressive headwinds in its petrol portfolio. However, it can stage a remarkable bounce-back as it expands its diesel portfolio (a revamped Dzire expected). We are valuing the company at Rs1,316, discounting the FY2013 earnings estimate by 12x. We recommend Hold on the stock.

ISMT: We have tweaked our earnings estimates for FY2012 and FY2013 to factor in the higher effective tax rate of 25% and the audited financials for FY2011. The management has confirmed that its 40MW power plant will be commissioned towards the end of Q2FY2012. Going forward, with the full benefit of the captive power plant as well as the increased capacity being felt in FY2013, we expect the earnings to grow at a CAGR of 41.5% over FY2011-13 with a stronger growth expected in FY2013. At the current market price of Rs33, the stock is trading at 5.3x its FY2012E earnings and 3.2x its FY2013E earnings. We lower our price target to Rs67 valuing the company at 6.5x FY2013E earnings.

Punj Lloyd: We have revised our estimates marginally in order to incorporate the better than expected performance at the operating level which gets marginally offset by the higher interest burden. The revised earnings per share (EPS) estimates now stand at Rs0.1 for FY2012 and at Rs5.2 for FY2013. At the current market price, the stock is trading at 11x FY2013E EPS. Though the company has shown an improvement at the operational level over the last two to three quarters but its earnings performance continues to disappoint. The balance sheet too remains under pressure with high debt and working capital requirement. Moreover, the Libyan orders continue to form 16% of the order book and the auditor

Read More