Wednesday, November 12, 2008

>Bharti Airtel(ANAGRAM)

At CMP of Rs690, the stock is trading at 20 x its Q2FY09 annualized EPS of Rs34. We think that Bharti is well placed to capitalize on the opportunities offered by telecom sector going forward. However, with new players entering sector, competition will be intense & margins will come under pressure. Bharti has a strong balance sheet as compare to its peers – Low leverage and all its capex plans is adequately funded. We have a “Neutral” rating on the stock.

Read full report Bharti Airtel(ANAGRAM)

>Time Technoplast(PINC Research)

PINC Research has maintained its buy rating on Time Technoplast with a price target of Rs 100 in its November 5, 2008 research report. "Time Technoplast Ltd. (TTL) reported a 26% YoY jump in net sales to Rs 2 billion in Q2FY09 on back of steady performance from the polymers and composites businesses, as well as increased inflows from NED Energy. We maintain our view that TTL’s business model offers huge scalability potential, strong visibility of earnings and stability of margins."

"The enormous growth potential of its core packaging business coupled with the ramp up in other verticals viz. auto, and infrastructure (i.e. batteries, HDPE pipes & Prefab structures) inspire confidence in the outlook for the stock. Hence, we maintain our ‘BUY’ recommendation but marginally reduce our price target to Rs 100 on an 18-month investment perspective on back of revised earnings estimates," says PINC's research report.

To read full report Time Technoplast(PINC Research)

>Gujarat NRE Coke(MF Global)

As expected Gujarat NRE Coke came out with another strong quarter for Q2FY09.

v Net sales increased by 386% to Rs.4,961 mn driven by higher coke prices, which were up by 187% in Q2FY09 and volume growth of 108%. The company produced 165,127 ton of coke up by 108%. Coke business contributed 83.6%, against 60.3% last year to the top line.

v Standalone numbers don't include sales from Australian subsidiary, which grew by 7.4x in Q2FY09 to Aus $53.8 mn. Australian subsidiary mined and dispatched 213,000 ton of coal in Q2FY09 as compared to 127,000 ton last year. It sold coal at average realization of Aus $253 per ton as compared to Aus $58 per ton last year.

v Standalone EBIDTA increased by 739.2% to Rs.1,464 mn in Q2FY09 and by 256% to Rs.2,728 mn in H1FY09.

v EBIDTA margin increased by 1,242bps to 29.5% in Q2FY09 and by 69bps to 31.2% in H1FY09 on account of higher coke price and low price coal inventory. Since the price of raw material i.e. coking coal is fixed for entire year while sells of coke happen in spot, we expect the company to face margin pressure here onwards.

Read full report here Gujarat NRE Coke(MF Global)