AMTEK AUTO
Edelweiss Securities:
“Acquisition of the UK-based J.L. French will add Ford, Land Rover, and Peugeot to its client base. With 32% compounded EPS growth between 2005-6 and 2008-9E, the stock trades at a P/E of 10 times on 2007-8 and 8.6 times on 2008-9 E earnings. We maintain our ‘Buy’ recommendation.”
GREENPLY INDUSTRIES
IDBI Capital:
“It recently expanded its plywood capacity and is also expanding its laminates production. The full effect of this expansion will be evident in 2007-8. Its latest results have been excellent, with 2006-7 revenue up by 40% and net profit up 60% YoY. The current price discounts 2006-7 EPS of Rs 13.8 by 9.7 times.”
MARUTI
Indsec Securities & Finance:
“Strong brand equity and innovation of product portfolio has helped it stay ahead of its peers. Capacity expansion, export orders kicking in from 2008-9 and new launches will augur well for the company. The stock trades at a P/E of 12.2 times its 2007-8E earnings and 10.1 of its 2008-9E earnings.”
INFOTECH ENTERPRISES
Edelweiss Securities:
“The company will be raising Rs 30 crore to fund acquisitions. We believe these would be EPS accretive. We expect revenue and net profit to grow at 34.1% and 41.6% over 2006-7 and 2008-9E, respectively. The P/E is 16.3 times 2007-8 and 12.6 times 2008-9 earnings. We maintain ‘Buy’ recommendation.”
LAKSHMI MACHINE WORKS
Anand Rathi:
“A robust order book position puts the top line growth in a comfortable zone. We estimate the net profit to grow at 42% in 2007-8 and 24% in 2008-9. At our 2007-8 estimated EPS of Rs 237, LMW is quoting at a P/E of 11.5 times. We feel the company should be looked in line with other capital goods players.”
NTPC
Khandwala Securities:
“The targeted growth in GDP can be achieved by expanding power generation capacity. We believe NTPC will have a good earnings growth. The stock is currently traded at 14 times 2007-8 earnings and 11 times 2008-9 earnings. We expect a price of Rs 172.50 based on 2008 estimated earnings.”
