|
Summary
of Contents
PULSE TRACK
-
Infrastructure index up 9.5% for
November 2006
STOCK UPDATE
Bharat Heavy Electricals
Cluster: Apple
Green
Recommendation: Buy
Price target: Rs2,650
Current
market price: Rs2,301
BHEL plans to
hike capacity to 15,000MW
Bharat Heavy Electricals Ltd (BHEL) has successfully
completed its capacity expansion to 10,000 megawatt (MW). The total
cost of the capital expenditure (capex) programme was close to
Rs1,200 crore. This was undertaken primarily to meet the expected
capacity addition of 66,000MW in the 11th Five-Year Plan.
Tata Motors
Cluster: Apple
Green
Recommendation: Buy
Price target: Rs1,004
Current
market price: Rs939
Another month of
exhilarating performance
-
Tata Motors'
December sales numbers were above expectations as the company
reported a 37% growth year on year (yoy) in the total sales
(including exports) with sales touching 48,792 units during the
month.
-
The
performance was again largely driven by the strong growth in the
domestic commercial vehicle (CV) sales, which grew by 50% yoy to
28,179 units in December 2006. The medium and heavy commercial
vehicle (M&HCV) sales stood at 17,274 units, growing by 55%
yoy while the light commercial vehicle (LCV) sales grew by 43% to
10,905 units.
-
The passenger
vehicle sales also remained strong during the month, rising by 27%
to 16,515 units. The sales of Indica grew by a whopping 52% to
10,588 units during the month. The new Indica V2 Xeta with a 1.2
litre engine at an introductory discount of Rs25,000 continued to
lead the volume growth during the month. The scheme, however, has
been withdrawn with the start of the new year. The Indigo family
registered sales of 2,077 units, declining by 24.6%; however the
sales of Sumo and Safari grew by 16% to 3,850 units.
-
The company's
sales from exports rose by 7% in December at 4,098 units as
compared to 3,831 units in the same month in 2005. The cumulative
exports grew by 11.6% for the April-December period to 38,733
units from a year ago.
-
The cumulative
total sales for the current fiscal (April-December period) stood
at 406,949 units, rising by 33.1% compared with the total sales in
the corresponding period of the last fiscal. The cumulative
domestic passenger vehicle sales were up 22.5% to 125,660 units,
whereas the sales of domestic commercial vehicles grew by 47.2% to
211,206 units in the same period.
-
At the current
market price, the stock discounts its consolidated FY2008E
earnings by 13.9x. We maintain our Buy on the stock with a price
target of
Rs1,004. |
