Banco Products India at its meeting held on Thursday, 28 June 2007 has recommended issue of bonus shares in the ratio of 1:1 (i.e. one equity share of Rs 10 each for every one equity share of Rs 10 each). The announcement was made after market hours on Thursday, 28 June 2007.
Month: June 2007
Citi puts a BUY on United Phosphorous
Citigroup has put a BUY on United Phosphorous Limited [UPL] with a target price of Rs 380. UPL’s acquisition of 2 brands from Dupont is another step to augment its product basket by inorganic means.
UPL is the only Indian play on the global crop protection market, with around 80% of
revenue coming from global markets. Citi forecast FY07-10E revenue and net profit CAGRs of 21% and 35%, respectively. Citi believes that P/E vs. earnings CAGR or EV/EBIDTA vs. EBIDTA CAGR is the correct metrics to value companies such as UPL.
Citi expects UPL to report an EPS of Rs 19.31 and 28.77 for for 2008 and 2009. Target price of Rs380 is based of average of FY08Eand FY09E FD EPS estimates.
Gitanjali Gems + Fortis Healthcare + Himatsingka Seide
Net profit of Gitanjali Gems rose 24.16% to Rs 13.72 crore in the quarter ended March 2007 as against Rs 11.05 crore during the previous quarter ended March 2006. Sales rose 40.97% to Rs 673.04 crore in the quarter ended March 2007 as against Rs 477.42 crore during the previous quarter ended March 2006.
For the full year, net profit rose 71.34% to Rs 81.90 crore in the year ended March 2007 as against Rs 47.80 crore during the previous year ended March 2006. Sales rose 36.89% to Rs 2219.26 crore in the year ended March 2007 as against Rs 1621.24 crore during the previous year ended March 2006.
Fortis Healthcare reported net loss of Rs 48.69 crore in the year ended March 2007 as against net loss of Rs 27.95 crore during the prevous year ended March 2006. Sales rose 25.88% to Rs 123.02 crore in the year ended March 2007 as against Rs 97.73 crore duriing the previous year ended March 2006.
Net profit of Himatsingka Seide declined 24.77% to Rs 8.90 crore in the quarter ended March 2007 as against Rs 11.83 crore during the previous quarter ended March 2006. Sales rose 13.97% to Rs 43.17 crore in the quarter ended March 2007 as against Rs 37.88 crore during the previous quarter ended March 2006.
For the full year, net profit rose 13.04% to Rs 54.61 crore in the year ended March 2007 as against Rs 48.31 crore during the previous year ended March 2006. Sales rose 15.83% to Rs 174.16 crore in the year ended March 2007 as against Rs 150.36 crore during the previous year ended March 2006.
Apollo Hospitals Results
Apollo Hospitals Enterprise’s net profit advanced 17.74% to Rs 14.60 crore in Q4 March 2007 as against Rs 12.40 crore in Q4 March 2006. Revenue rose 21.56% to Rs 233.40 crore in Q4 March 2007 as against Rs 192.00 crore in Q4 March 2006.
Net profit surged 66.28% to Rs 100.10 crore in the year ended March 2007 as against Rs 60.20 crore in the year ended March 2006. Revenue increased 25.88% to Rs 891.00 crore in FY 2007 as against Rs 707.80 crore in FY 2006.
ABG Shipyard + ONGC + Mphasis – BUY from Citigroup
Citigroup research has recommended a BUY on ABG Shipyard, Bharti Shipyard ONGC and Mphasis. We had a BUY on Mphasis much before Citigroup did.
ABG Shipyard and Bharti Shipyard:
Citi raiseed their target price for ABG Shipyard to Rs560 (Rs430 earlier) and Bharati Shipyard to Rs670 (Rs525 earlier) as we roll forward our target multiple for both companies to 12x FY09E PE (15x FY08E earlier), in line with valuations of similar-sized shipyards in the region.[Asia]
Both the companies are expected to report a EPS growth of 50% from 2008-10. Bharti Shipyard is expected to report a fully diluted EPS of Rs 38.53 and Rs 55.87 for FY08 and FY09. While ABG is expected to report EPS of Rs 29.92 and Rs 47.18 for FY08 and FY09.
The target multiple of 12x FY09E earnings for the Indian shipyards also compares favorably with the imputed target P/E (average 12.4x CY08E) of Korean shipyards.
ONGC:
Citi rates ONGC as Buy/Medium Risk (1M) with a target price of Rs1100. Despite near-term uncertainties on subsidy payouts, ONGC’s asset valuations have improved with higher net realizations and greater confidence in gas price deregulation.
The target price of Rs 1100 is based on a PER of 11x FY08E P/E (previously 10x) on account of greater confidence in adherence to a subsidy-sharing formula and the company’s recent successes in driving volume growth and potential improvement in reserve replacement. The new target price imputes EV/EBITDA of 5.5x FY08E. This is at the higher end of historical trading ranges – PER of 2.1x to 11.3x and EV/EBITDA of 0.8x to 5.6x – but in-line with regional peers.
Sun TV Network launches FM station
Sun TV Network has announced the launching of its FM Radio Station in Bhubaneshwar under the brand 93.5 S FM from 28 June 2007 through its subsidiary South Asia FM.
This station can be heard at 93.5 MHz frequency in Bhubaneshwar and Cuttack.
With this, the total FM stations of the company’s group operational goes up to 8. The company hold licences for 45 FM Radio Stations across India, and will be one of the largest radio broadcasters in India when all the remaining 37 stations becomes operational.