United Spirits Ltd – USL, despite its dominance and 5x the size of the next competitor, operates at EBITDA margin of merely 14% (in FY08E), far lower than market leaders in other parts of the world. Whyte & Mackay bulk scotch supplier, is benefiting from the up-cycle in scotch prices. We estimate W&M accounts for 1/3rd of Group EBITDA. Expect EPS CAGR of 60% over FY07-09E. USL trades at P/E of 28x FY09E. Expect USL to report an EPS of Rs 32.35 and Rs 62.35 for FY08 and FY09 respectively.
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Year: 2007
Suzlon Energy + Bajaj Auto Review
Suzlon’s EBITDA margin rose to its long term guidance of 16% (7.2% in 1QFY08) led by a 76%YoY growth in volumes led by resolving of law & order issues in the domestic market, improved deliveries in the international market and sell-down of inventory (140MW of the total 683MW). On the back of record deliveries of 683MW and resultant operating leverage, led to 68% YoY growth in PAT at Rs3.9bn, much ahead of the Street estimate of Rs2.5bn. The company also has a strong order book position. (more…)
Nitin Fire Protection Nod For Exports
Nitin Fire Protection Industries announced during the market hours today that company’s subsidiary Nitin Cylinders at Vishakpatnam has received the NZS 5454 type approval required for exports of compressed natural gas (CNG) cylinders to countries like Pakistan, Bangladesh, Egypt etc. This will help company accept orders and export goods to these countries.
The current price of Rs 382 discounts Q1 June 2007 annualised EPS of Rs 4.63 by a PE multiple of 82.50.
Suzlon Energy Stock Split + Results
The board of Suzlon Energy has proposed to sub-divide the equity shares of the face value of Rs 10 each in to equity shares with a face value of Rs 2 per share.
Suzlon Energy’s net profit rose 40.27% to Rs 355.58 crore on 32.39% rise in total income to Rs 1,718.73 crore in Q2 September 2007 over Q2 September 2006.
The company’s order book position stands at Rs 16,328.04 crore comprising of Rs 1988.88 crore of domestic orders and Rs 14,339.16 crore of export orders.
Buy Megasoft + Zensar Technologies
Megasoft Ltd reported good set of numbers for the 3Q of CY07; consolidated revenues for the company stood at Rs.768mn, with Visual’s contribution being Rs.180mn. The consolidated PAT stood at Rs.163mn. The company witnessed healthy traction in the telecom products segment and margin improvements across both products and services. (more…)
Satyam Results and Guidance
Satyam Computer’s net profit rose 7.19% to Rs 417.15 crore on 10.75% rise in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006.
The company revised upwards earnings as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupee terms and dollar terms. The company forecasts its revenue in fiscal 2008, as per US GAAP, to be between $ 2.07 billion and $ 2.08 billion, implying a growth rate of 41.5% to 42.0% over fiscal 2007. Basic earning per American depository shares (ADS) for fiscal 2008 is expected to be $ 1.24, implying a growth rate of 36.0% over fiscal 2007.
Corresponding revenue growth under Indian GAAP consolidated is expected to be between 26.3% and 26.7%. EPS for the full year is expected to be between Rs 25.0 and Rs 25.1, implying a growth rate of 16.5% – 17.0%.