Thursday, April 21, 2011

Analysts' corner Bse Nse Stock

Godrej Properties, DCB, Dabur & Navneet Publications

Reco: NA,
Target: Rs 686

Almost 77 per cent of Godrej Properties ‘s (GPL) land bank of 84msf (saleable area of ~50msf) comprises of joint development (JDA) projects, which allows it to enjoy a low risk, low capital intensive business model, with superior RoE. Analysts expect GPL to enjoy a premium valuation to due its strong growth visibility, assetlight model and pan-India brand equity. Going forward, the key catalysts which could further re-rate GPL are (i) traction on disclosed MoUs, (ii) visibility on development of other group land bank (particularly at Vikhroli), and (iii) continued momentum on new third-party JDAs. Neutral.

— Motilal Oswal Securities

Reco: Rs 59,
Target: Rs 72

Development Credit Bank ‘s (DCB) FY11 results prove that its turnaround strategies have been effective with the bank declaring a net profit of Rs 21.4 crore as compared to a loss of Rs 78.5 crore in FY10. The core business performance strengthened with NII surging 34 per cent YoY to Rs 189 crore as advances and deposits grew 23 per cent YoY and 17 per cent YoY to Rs 4,271 crore and Rs 5651 crore, respectively. Analysts expect a 24 per cent CAGR in business and lower credit costs to boost NII and net profit by a CAGR of 24 per cent and 87 per cent, respectively, over FY11-13E. Maintain hold.

— ICICI Direct

Reco: Rs 103,
Target: NA

Dabur is entering into the hand sanitizer market under 'Fem Care' brand. The instant hand sanitization market is still at a nascent stage in India and is estimated to be Rs 20 crore. Dabur will compete with Reckitt Benckiser, Hindustan Unilever, Apollo Pharmacy and Godrej Consumer’s Protekt and expects a double digit market share in the hand sanitizer market within next three years. The product is available as 'Fem Safe Handz' with two variants priced at Rs 49 for 50 ml and Rs 89 for 100 ml. Analysts believe it is a good time to play the health and hygiene positioning. Fem portfolio grew 14.3 per cent in 9mFY11 with growth in Fem bleaches at 18.1 per cent. Dabur is happy with the relaunch and expects a sustainable growth rate of 15-20 per cent in coming years. Newly launched Gold bleach has been a success. Maintain buy.

— Edelweiss Securities

RECO: Rs 60,
Target: Rs 68

Navneet Publications India currently enjoys 60 per cent market share in Gujarat & Maharashtra under Publishing Segment (Schools).Company is poised to maintain & further enhance its leadership status on the strength of its quality content, experienced writers & long standing relations with schools. Expected syllabus changes in Gujarat and Maharashtra in coming years will further drive the growth. It plans to further leverage its strong distribution network to market its Stationery products. Navneet forayed into e-learning two years ago through its subsidiary eSense. The potential to grow Revenues & Margins are immense in this segment & can easily grow bigger than its Publishing business over the coming few years. Initiate coverage with accumulate.   

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