STATE BANK OF INDIARecommendation BUY Stock Price Rs 2,263 One-year returns 105% Profit Margin 53.2% Q2 PE ratio 73.90
Enam Securities: “SBI’s net profit grew 36% YoY in the second quarter, driven by a 42% jump in non-interest income and a drop in provisioning requirements. SBI quotes at 1.7 times 2008-9 consolidated BV and 9.9 times 2008-9 estimated earnings. We raise our price target by 23% and maintain sector Outperformer rating.”
ITCRecommendation BUY Stock Price Rs 2,263 One-year returns 105% Profit Margin 53.2% Q2 PE ratio 73.90
India Infoline: “ITC revenues grew 14.2% YoY to Rs 3,270 crore during the second quarter of 2007-8. We expect its revenues to grow 18.6% and net profit 17.7% CAGR over the next two years. With the entry into the personal care category, we expect ITC to become a tough competitor for Hindustan Unilever.”
MOSER BAERRecommendation BUY Stock Price Rs 269 One-year returns 58.4% Profit Margin -60.2% Q2 PE ratio 1416.05
Edelweiss Securities: “Moser Baer’s second quarter numbers were disappointing, with revenues down 11% YoY to Rs 448 crore. But strong growth in the two startup businesses will change the profitability for the better over the next two years. Any weakness in the first half of 2007-8 is an opportunity to buy for the long term.”
ABBRecommendation HOLD Stock Price Rs 1,606 One-year returns 135.3% Profit Margin 45.6% Q2 PE ratio 294.08
IDBI Capital: “ABB got orders worth Rs 166.8 crore during the third quarter of 2006-7, a 23% growth over the third quarter of 2005-6. We expect the strong growth momentum to continue in the fourth quarter of 2006-7 as well as in 2007-8. But its rich valuations factor in the strong growth momentum.”(ABB’s financial year is Jan-Dec)
INDIAN HOTELSRecommendation BUY Stock Price Rs 140 One-year returns -6.1% Profit Margin 26.6% Q2 PE ratio 159.26
India Infoline: “Indian Hotels reported a 15.7% YoY increase in sales in the second quarter. Operating margins improved by 420 basis points to 29%. Better cost control in the first half augurs well for the busy season ahead. We expect earnings CAGR of 19.6% over the next two years with a target price of Rs 160.”
SATYAM COMPUTERSRecommendation BUY Stock Price Rs 436 One-year returns 4.4% Profit Margin 18.2% Q2 PE ratio 69.87
Prabhudas Lilladher: “Satyam’s revenues grew 11% QoQ while profits grew by 8.1% to Rs 409 crore in the second quarter. We expect Satyam to report profit growth of 19.7% in 2007-8 and 23.5% in 2008-9. Robust volume growth, better pricing and strong deals in the pipeline are the key drivers. Our target price is Rs 537.”
