UTV SOFTWARE COMM
Prime Broking:
“UTV’s present order book of Rs 68 crore is likely to grow three times by 2009-10. With global clients such as Disney, BKN, Mike Young, Freej and Classic Media, we foresee UTV clocking revenue CAGR of 71% and net profit CAGR of 38% over the next three financial years. Our price target is Rs 794.”
JAIN IRRIGATION
SSKI:
“Jain Irrigation’s domestic micro irrigation system business is well poised to grow at about 50% CAGR (2007-9), driven by increasing allocation by various states. We are confident of its growth at over 35% CAGR over the next three years. We continue to maintain our bullish stance on the company.”
TATA ELXSI
Networth:
“Tata Elxsi’s currency dependency is well hedged with the euro, yen and dollar contributing almost the same proportion of revenues. Its revenues are expected to grow at a CAGR of 40% and EPS at 32% over 2007-9. The company is trading at a discount to its peers by a reasonable margin. One year target: Rs 387.”
HERO HONDA MOTORS
Prime Broking:
“The motorcycle industry registered a sales decline of about 10.1% (YoY) because of rising interest rates. However, Hero Honda’s volume sales dipped only 3.3% YoY. We expect the company’s sales to revive now, led by the festive season and healthy rural demand. Our price target for the stock is Rs 837.”
PANTALOON RETAIL
Enam Securities:
“Pantaloon Retail’s sales growth of 77% in the fourth quarter of 2006-7 was in line with expectations. But shrinking margins continue to play spoilsport with retail valuations. However, the value unlocking from subsidiaries will drive overall valuations. We retain a sector neutral rating on the stock.”
VST INDUSTRIES
Anand Rathi:
“With the implementation of VAT, all other state-levied indirect taxes are expected to be removed. We believe that entry tax, which accounts for 3% of net sales, will be abolished, resulting in margin expansion for VST. Compared to its peers, VST is quoting at a steep discount. Our 12-month target is Rs 515.”
