Hold TVS Motor, TRF; accumulate Jubilant FoodWorks: Emkay
Emkay Global Financial Services has recommended hold rating on TVS Motor, TRF and recommended accumulate rating on Jubilant FoodWorks in its November 3, 2011 research report.
November 08, 2011 / 18:17 IST
Emkay Global Financial Services has recommended hold rating on TVS Motor, TRF and recommended accumulate rating on Jubilant FoodWorks in its November 3, 2011 research report.
TVS Motor
Results in line with Sales/EBITDA/PAT at Rs 19.9bn/1.4bn/765mn vs est. of Rs 19.7bn/1.4bn/752mn. Company invested Rs 769mn in various subsidiaries during the quarter. Oct 2011 vols declined by ~6.3% YoY to ~183,000 units due to one week maintenance shut down. Strong demand led to delay in planned shutdown (generally in May) to October. Retain FY12E/FY13E vols. at 2.3mn/2.6mn units. Upgrade our F12E/FY13E by 12%/16% to Rs 5.8/7.2 due to favorable forex, price hike of 1%/3.5% in dom./exports and lower RM cost We maintain our volume estimates for FY12E/13E at 2.3mn/2.6mn units respectively. Our estimates imply volume growth of ~14% in H2FY12. We revise our net sales by 1.4%/1.6% in FY12/13 to factor in improved realizations and price hike of 1%/3.5% in domestic and export markerts. We increase our EBITDA margins by 50bps/80bps in FY12/13 driven by price hike, moderation in input costs and favorable forex rates. We factor in USD/Re at Rs 46/47.5 in FY12/13 vs our earlier est. of Rs 45.5. Our net profit estimates is revised upwards by 11.7%/15.7% to Rs 2.8bn/3.4bn in FY12/13..TRF
Improved operational performance
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