Friday, April 29, 2011

Analyst's corner Bse Nse Stock

Maruti Suzuki & Indian Bank

Reco price: Rs 1,327
Target price: Rs 1,760

The March quarter was marked with a series of adjustments (depreciation, staff cost, other high expenses and a lower tax rate). Maruti Suzuki has maintained a demand outlook of 10-15 per cent for this financial year. There has been a drop in footfall conversion rate due to higher fuel cost and interest rates. At Rs 10,090 crore, net sales were in line with expectations, driven by strong volume growth and improvement in average realizations. Volumes grew by 19.5 per cent on-year to 343,420 units. ASP stood at Rs 287,221 (up 0.2 per cent on-year), driven by an improvement in product mix (higher contribution from SX4/Dzire segment). Net profits was due to a lower tax rate of 20.2 per cent. For financial year 2011-12, Emkay has lowered its Ebidta by 0.7 per cent, and upgraded its EPS estimates by 3.6 per cent to Rs 102.4, due to the lower tax rate. Maintain Accumulate.

— Emkay Research

Reco price: Rs 247
Target price: Rs 269

Well below estimates, Indian Bank reported a net profit growth of 7.1 per cent on-year to Rs 439 crore for the March quarter, mainly on account of a higher-than-expected tax provisioning (effective tax rate of 43.5 per cent for the quarter).
Further, an improvement in asset quality was the key positive of the result. Net advances grew marginally 1.8 per cent on-quarter and 21.1 per cent on-year to Rs 75,250 crore. Deposits grew 4.7 per cent on-quarter and 19.9 per cent on-year to Rs 1,05,804 crore. Casa ratio stood at 30.9 per cent, down 116 basis points, as against 32 per cent in the December quarter. NIM was reported at 3.86 per cent, two basis points higher than the previous quarter. Non-interest income grew by 9.2 per cent on-quarter to Rs 272 crore. Asset quality improved, with gross and net NPAs declining. Maintain Accumulate

--Angel Broking

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