Wednesday, January 19, 2011
Analyst's corner Bse Nse Stock
Thangamayil Jewellery & Godrej Properties
Thangamayil Jewellery
Reco Price: Rs 162,
Target Price: Rs 219
Thangamayil Jewellery (TJL) trades in gold, diamond and platinum jewellery. The ornaments are also made to order according to the specific requirements by the customer. TJL has continuously increased its market share to 15 per cent currently in the sale of gold and diamond jewellery in the city of Madurai and surroundings. The strategy of TJL is to focus on Tamil Nadu and tapping the rural population. TJL plans to take the total number of retail showrooms to 9 by 2010-11 and 15 by 2011-12 with a capex of Rs18-20 crore to be funded via internal accruals and IPO proceeds. There is a shift in the jewellery market from the unorganised to the organised players, which will benefit the company. The expenditure incurred towards Hallmarking as well as the promotional efforts is likely to add further brand value. Maintain buy.
—Reliance Securities
Godrej Properties
Reco Price: Rs 590,
Target Price: Rs 700
Godrej Properties (GPL) reported lower than expected numbers for Q3-FY11. While revenue declined 44 per cent y-o-y to Rs 48 crore, reported PAT declined 13 per cent y-o-y to Rs 33 crore. Ebitda margin expanded from 4.4 per cent in Q2-FY11 to 13.5 per cent, led by revenue booking from higher-margin projects in Bangalore, and commercial projects in Kolkata and Chandigarh. During Q3-FY11, GPL achieved strong momentum in sales, primarily due to its new launches. The management has guided new launches at Kochi, Mumbai and Hyderabad over the next 12 months. As at December, GPL’s gross debt increased to Rs 870 crore, while net debt stood at Rs 660 crore. Due to delay in monetisation of some key projects, brokerages have downgraded 2010-11 EPS estimate to Rs 16.3 (v/s Rs20.5 earlier) and NAV estimate to 2012-13 at Rs777. Maintain neutral.
—Motilal Oswal
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