Buy JP Associates, Shiv Vani Oil: Sharekhan

47496 Investors following Maruti Suzuki. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy JP Associates, Shiv Vani Oil: Sharekhan

Sharekhan has come out with its report on various stocks.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Tata Power; target of Rs 1125: Aditya Birla Money Sell YES BANK; target of Rs 270: Aditya Birla Money Buy Bharti Airtel; target of Rs 410: IIFL ALSO READ See previous views by Sharekhan See what other Experts & Brokerages are saying about Maruti Suzuki See messages about Maruti Suzuki Maruti Suzuki BSE | NSE 30/05/12 Are Mutual Funds betting on Maruti Suzuki? Other Stocks in this news ISMT | Punj Lloyd | Jaiprakash Associates | Shiv Vani Oil & Gas Exploration Services |

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's qualification remains unresolved. Thus, we maintain our Reduce rating on the stock and keep our price target under review till some stability emerges.

Jaiprakash Associates : We have re-visited our earnings estimates for FY2012 and FY2013 mainly to factor in a lower than expected volume growth in the cement division and a higher than expected interest burden on the company. Consequently the revised earning per share (EPS) for FY2012 and FY2013 works out to Rs3.2 and Rs4.5 respectively. We continue to like JAL due to its diversified business model and aggressive expansion plans. However, in the absence of a near term trigger and headwinds in the Yamuna Expressway project the stock price of the company may remain under pressure in the near term. In terms of valuation we continue to value the stock using the sum-of-the parts (SOTP) valuation methodology and arrive at a value of Rs107 per share. We maintain our Buy recommendation on the stock with a revised price target of Rs107. At the current market price, the stock is trading at a price earning (PE) multiple of 18.2x FY2012 and 12.9x FY2013 earnings estimate.

Shiv Vani Oil & Gas Exploration Services : At the current market price, the stock is available at 3.1x its FY2013E earnings and an enterprise value (EV)/EBIDTA of 3.3x. We believe the moderation in order inflow has already been absorbed in the stock as the same has corrected by 60% in the last one year and by almost 36% in the last quarter. The stock is currently trading at attractive levels. Hence, we maintain our Buy recommendation on the stock with a price target of Rs340.

FIIs holding more than 30% 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