Buy Sun TV Network, HSIL: AnandRathi
AnandRathi Securities is bullish on Sun TV Network and HSIL and has recommended a buy rating on the stock with a target price of Rs 495, Rs 130 respectively in its November 12, 2013 research reports.
November 12, 2013 / 12:56 IST
AnandRathi's research report
Sun TV Network - Sun TV's standalone revenues in 2QFY14 were up 7.6 percent yoy and came 6.8 percent below our expectation. Ad revenues fell 4.5 percent yoy, versus our expectation of 12 percent growth. Management said the weakness is temporary and is on account of ongoing migration to the lower ad-duration regime (lower inventory absorption, post ad-rate hikes). We believe Sun TV's growth/profitability prospects continue to be strong, driven by its dominant presence in Tamilnadu. We expect ad revenue growth to normalize from 3QFY14. We maintain our Buy rating on the stock with a target price of Rs 495.HSIL - Revenue at HSIL's building products division grew 26 percent yoy (38 percent qoq) to Rs 2.3bn driven by 21 percent growth in sanitaryware (9 percent volume growth), 35 percent in faucets (31 percent volume growth) and 22 percent in traded products. The more-than-expected PBIT margin rose 140bps yoy, 80bps qoq, mainly due to price hikes in 1HFY14. The 2QFY14 results were in line with estimates. Despite robust growth in building materials, we expect FY14 performance to be weak, given pressure in the container-glass business. We believe that, operationally, the worst is behind and momentum should pick up in FY15, led by a turnaround in container glass. At our target, the stock would trade at 10x FY15e consolidated earnings. We maintain our Buy rating on the stock with a target price of Rs 130.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!
