Emkay- Reports [canara bank icici bank bpcl lmw jubilant havells pnb divis century ply]
Deepak Vaishnav
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Canara Bank |
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Results inline at P&L front; Slippages remain higher |
HOLD
CMP: Rs469 Target Price: Rs500
n CBK results ahead of expectation at P&L front with NII at Rs19.6bn and Net profit at Rs8.5bn, however continues to disappoint on asset quality side
n NII grew by 9.4%qoq (-2.1%qoq) to Rs19.6bn ahead of consensus led by 22bps expansion in NIM’s, albeit advances grew by just 1.4%qoq
n Slippages remain higher at 2.4%. Building in 2% slippage rate for FY12, reco/upgrades rate at 80% of opening NPAs can surprise positively on credit costs
n Lowering earnings by 20%/ 7.6% for FY12/13 for higher prov. However better recoveries can give positive surprise to our numbers. Maintain HOLD with TP of Rs500
Regards,
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Kashyap Jhaveri |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : kashyap...@emkayglobal.com |
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Board No. : +91-22-6612 1212 | Extn. : 249 | DID : +91-22-6612 1249 | Mob : +91-98202 41712 | Fax : +91-22-6624 2410 | |
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ICICI Bank |
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Well on track |
ACCUMULATE
CMP: Rs931 Target Price: Rs1,200
n ICICI Bank’s NII at Rs25.1bn inline with consensus estimates. PAT at Rs15bn above estimates driven by lower provisions
n Advances grew by robust 6%qoq aided by strong growth in international and domestic corp book. But, retail reported 1.1%qoq decline led by decline across retail portfolio
n The bank asset quality remained largely stable with just 1.2% increase in GNPA, while NNPA reported decline of 2.9%qoq to Rs22.4bn
n Valuations at 1.9x/1.7x FY12E/FY13E standalone ABV not unreasonable with improving operating matrix. Maintain ACCUMULATE rating with TP of Rs1200
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BPCL |
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Forex loss + No cash compensation = Net loss |
ACCUMULATE
CMP: Rs 623 Target Price: Rs 684
n BPCL reported results which were below our estimates with EBIDTA loss at Rs26.9bn and Net loss at Rs.32.2bn, revenue grew by 19.4% YoY to Rs.423bn
n Direct market sales grew by 6.7% YoY to 7mmt, while crude throughput declined marginally by 0.4% YoY to 5.6mmt
n Average gross refining margin for Q2 FY12 was at $1.6/bbl as compared to $2.8/bbl, declined by 41% YoY and 45% sequentially
n Valuation looks reasonable at 1.2x FY13E P/BV, maintain Accumulate rating on the stock with target price of Rs. 684
Regards,
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Dhaval Joshi |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : dhaval...@emkayglobal.com |
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Board No. : +91-22-66121212 | Extn. : 282 | DID : 66121282 | Mob : +919920871839 | |
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Lakshmi Machine Works |
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Strong quarter, Reiterate Accumulate |
ACCUMULATE
CMP: Rs1,935 Target Price: Rs2,466
n Strong revenue growth of 31.2% yoy to Rs5814mn (our est. of Rs5247mn), driven by robust performance in both Textile and machine tools division
n EBITDA at Rs889mn grew 14.3% yoy with margin at 15.3% (our est. of 13.9%) down 226bps yoy but improved 142bps qoq. PAT at Rs492mn was better than our est. of Rs429mn
n Order inflow moderates to Rs2.2bn v/s Rs5.9bn in Q1FY12 and total order book stands at Rs47bn v/s Rs49bn in Q1FY12
n Maintain ACCUMULATE with revised TP of Rs2466 (earlier Rs2535). Valuations at 11.4x /9.4x EPS of Rs169.5 /206.6 for FY12/13E
Regards,
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Naval Seth |
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Research Associate | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : naval...@emkayglobal.com |
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Board No. : +91-22-66121212 | Extn. : 414 | DID : 66242414 | Mob : +919930468398 | |
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Jubilant Life Sciences |
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Growth momentum continues – Maintain Buy |
BUY
CMP: Rs200 Target Price: Rs359
n Jubilant’s Q2FY12 numbers were above expectations with Revenues at Rs10.5bn (up 22% YoY), EBITDA at Rs2.4bn (up 61% YoY) and APAT at Rs794mn (up 8% YoY)
n Top-line growth and EBITDA margin expansion was primarily led by ramp-up in Cadista business & favorable impact of INR depreciation since company has no forward covers
n Going forward, new capacity additions in pyridine & vitamin business, momentum in Cadista and +ve impact of currency depreciation will boost the top-line and the bottom-line
n Maintain Buy with a target price of Rs359 (10xFY13E EV/EBITDA)
Regards,
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Deepak Malik |
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Senior Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : deepak...@emkayglobal.com |
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Board No. : +91-22-66121212 | Extn. : 257 | DID : 66121257 | Mob : +91 9769811227 | |
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Havells India |
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Remains Rock Solid, Retain BUY |
BUY
CMP: Rs381 Target Price: Rs460
n Q2FY12 standalone performance above expectations - revenues grew 28% yoy to Rs 8.5bn; EBIDTA margins 170bps to 13.5% & APAT at Rs 702mn, up 20% yoy
n Against expectation of moderation, delivers strong performance with healthy growth in lighting and consumer durables. Improves Ebidta margins despite cost pressure
n Strong operating performance in Sylvania- with Europe registering 4% growth being positive surprise. But, forex loss curtails net profit to € 1.7mn for Q2FY12
n Stellar quarter, Drivers to domestic business remains intact, Improvement in performance of Sylvania to continue. Maintain Buy with target price of Rs460/Share
Regards,
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Pritesh Chheda |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com |
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Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241 |
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Prashant Kutty |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : prashan...@emkayglobal.com |
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Board No. : +91-22-6612 1212 | Extn. : 341 | DID : 6612 1341 | Mob : +919819081715 |
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Punjab National Bank |
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Stellar performance |
ACCUMULATE
CMP: Rs1,013 Target Price: Rs1,270
n PNB reports stellar results with NII (Rs34.5bn) and PAT (Rs12.1bn) sharply ahead of our/street estimates. Improved reco/upgrades (60% of op GNPAs) remain stand-out points
n Loan growth at 2.5% qoq remained broad based; deposits up 5.5% qoq largely in the nature of term deposit. CASA eases to 37%, but NIMs still expand 11bps qoq led by better yields
n Asset quality surprised +vely with slippages at Rs9.9bn. Major restructuring in troubled segments of Power (SEB) and drilling – a prudent step
n With material improvement in asset quality, we are now factoring in lower credit cost (avg 81bps). Valuations at 1.4x FY12E/1.1x FY13E ABV appear reasonable
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Divi’s Lab |
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Robust performance - Maintain Buy |
BUY
CMP: Rs759 Target Price: Rs927
n Divi’s Q2FY12 performance was in-line with expectations with (a) Revenue at Rs3.66bn (up 43% YoY); (b) EBIDTA at Rs1.38bn (up 56% YoY) & (c) APAT at Rs1.1bn (up 45% YoY)
n Robust performance was on the back of commissioning of new SEZ plant at Vizag during June 2011
n Going forward, improvement of capacity utilization at Vizag plant and ramp up in its carotenoids business will boost top-line and bottom-line
n Strong quarter – Re-iterate Buy with a target price of Rs927 on the stock (20x FY13 EPS of Rs46.3)
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Century Plyboards (India) Ltd |
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P&L division drives better operational performance |
BUY
CMP: Rs59 Target Price: Rs82
n EBITDA at Rs595mn, above est led by better profitability of Plywood & Laminates (P& L) division. Net profit at Rs141mn, -66.4%, below est due to MTM forex losses of Rs267mn
n Robust topline growth (+33.6% yoy) continues driven by P&L revenue growth of 23.7% while cement segment registered +16.5% revenue growth
n Delay in commissioning of Cement Grinding unit project at Kahalgaon by 3 mnths has led to volume downgrades and revision in earnings for FY12E/13E by -5.4%/-2.9%
n 3X expansion in cement capacity & full scale operations of CFS business to fuel growth in FY13 (44% topline growth). De-merger remains potential value un-locking trigger-BUY with revised price target of Rs82
Regards,
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Ajit Motwani |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : ajit.m...@emkayglobal.com |
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Board No. : +91-22-66121212 | Extn. : 255 | DID : 66121255 | Mob : +919820934229 |
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