Angel Broking neutral on Unity Infraprojects, Vijaya Bank
Brokerage house Angel Broking has maintained a neutral rating on Unity Infraprojects and Vijaya Bank in its research reports dated August 12, 2013.
August 12, 2013 / 16:57 IST
Angel Broking's research report -
Unity InfraprojectsOn the back of 1QFY2014 performance and muted order inflows, we revise our EPS estimate for FY2014 and FY2015 to Rs 9.3 (our earlier estimate was of Rs 11.0) and Rs 9.6 (our earlier estimate was of Rs 11.5) respectively. The stock is currently trading at a P/E of 2.2x and 2.1x our FY2014 and FY2015 diluted earnings estimates. On the back of slower-than-anticipated order inflows, stretched working capital and increasing leverage on the balance sheet, we maintain our Neutral rating on the stock.Vijaya BankWe remain wary of the incremental asset quality and margin concerns for the bank, as we take into consideration its high exposure to stressed sectors, its predominantly wholesale based funding profile and recent macro developments amidst an overall weak economic environment. Overall, we have a cautious view on the sector, with a positive bias towards more retailoriented banks, on both assets as well as on liabilities. Moreover, the bank's core equity tier-I ratio also remains low, which could entail raising capital at book dilutive valuations. Hence, we recommend a Neutral rating on the stock.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
