Hits & Misses: Asian Mkt Sec reviews earnings of 3 stocks

In an interview with CNBC-TV18, Kamlesh Kotak, Asian Markets Securities said the company is seeing a strong uptick in the CV segment and it is expected to sustain good growth ahead.

He also sees BGR Energy turning in good numbers in the quarters ahead. He has revised the price target on the stock to Rs 900. “This is the only end-to-end player in the complete power chain. So we see a huge amount of traction and good upside for the stock,” he said.

He however sees the pressure sustaining for EMCO Ltd. “We still see some more quarters where the company is going to be reeling under the pressure of lower volume uptick and the prices that have softened further on the realization side,” he said.

In an interview with CNBC-TV18, Kamlesh Kotak, Asian Markets Securities analysed the numbers of WABCO-TVS , BGR Energy Systems and EMCO and gave his price target on them going ahead.

Below is a verbatim transcript of the interview. Also watch the accompanying video.

Q: What is the call on WABCO-TVS and how did the numbers look?

A: This is a pure auto ancillary which is a leading company with 80% market share in air brake system catering to medium and high commercial vehicles. The company has locked 100% jump in revenues and almost 250% jump in PAT, mainly driven by volume growth which has been phenomenal.

The margins have improved across the board because fixed costs have been pretty low. We expect the trend to continue with a moderate pace and 35% CAGR is what we are expecting based on current numbers. The company can have good numbers at least for some coming 3-4 quarters. We have a price target of Rs 1136 based on FY12 earnings which is giving a PE multiple of 16 times. So it is a very good story on the CV play of Indian markets.