Value picks post June quarter results: Prabhudas Lilladher

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Value picks post June quarter results: Prabhudas Lilladher

Prabhudas Lilladher has come out with its value picks post June quarter results.

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Prabhudas Lilladher has come out with its value picks post June quarter results.

Yes Bank : Yes Bank's headline numbers were in line with our expectations. Key positives for the quarter were stable margins and impeccable asset quality. Business growth remained healthy and CASA ratio improved to 10.9% from 10.3%. We maintain our 'BUY' rating with a target price of Rs 450.

Zee Entertainment : Zee Entertainment (ZEEL) has recorded a dismal 0.5% YoY ad revenue growth, as ad spends slowed down considerably in the latter half of the quarter. Sports segment revenues of Rs 873m and operating loss of Rs 566m. While the impact of the slowdown in ad spends was worse than expected, the improvement in DTH revs augurs well for maintaining profitability. Maintain Accumulate.  

Exide Industries : Top-line growth was muted mainly on account of slower growth in the automotive OEM segment and lower demand for inverter batteries during the quarter. The current valuation seems stretched, given the earnings CAGR of 13.4% for FY11-FY13E period. Hence, we downgrade our rating to 'Reduce' from 'Accumulate' earlier.

Hero Honda : Hero Honda (HH) reported a 5.4% QoQ growth in its top-line at Rs56.8bn. Volumes for the quarter increased by 5.2% QoQ whereas average realisation / vehicle remained flat. We estimate a 16.2% CAGR in revenues and a 13.7% CAGR in earnings for FY11-FY13E period. At the CMP, the stock trades at 13.7x its FY13E earnings, respectively; this in our view is fully valued. Maintain 'Reduce'.

Hindustan Zinc : Hindustan Zinc (HZL) reported better-than-expected results on the back of higher than expected concentrate volumes and yields on treasury investments. Arguments of strong earnings quality and attractive valuations hold firm even after the earnings dilution associated with recommendations under the draft bill of new MMDRA act. We maintain our 'Accumulate' rating on the stock.

Kotak Mahindra Bank : Kotak Mahindra Bank's headline numbers were in line with our estimates; however steep margin erosion was a dampener. Asset quality continued to improve. On a consolidated basis, weak capital market businesses and loss from international subsidiaries acted a drag on consolidated earnings. "Accumulate".

Rallis India : Rallis consolidated net sales grew by 46.5% YoY to Rs2,975m on the back of contribution from Metahelix Lifesciences. Rallis's EBITDA grew by 90.0% YoY to Rs435m with EBITDA margin of 14.6%. Metahelix has shown strong sales of Rs593m with the EBITDA margin of 20.6% during Q1FY12. Rallis's adjusted PAT grew by 58.4% YoY to Rs231m. Metahelix contributed Rs66m in Rallis's PAT.

FIIs holding more than 30% in Indian cos

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