Thursday, June 2, 2011

Analyst corner Bse Nse Stock

BPCL & Torrent Pharmaceuticals

Reco price: Rs 627
Target price: Rs 684

BPCL has reported results which were above estimates with Revenue at Rs 45,200 crore ( up 20.5 per cent Y-o-Y) and net profit at Rs 930 crore ( up 33 per cent Y-o-Y). Volume growth plus better realisation during the quarter boosted top line. For the full year the government has provided 52.5 per cent (Rs 41,000 crore) as cash compensation. Clarity on subsidy sharing mechanism for FY12 awaited. Analysts expect GRM's to improve in the coming quarters due to improved petro product spreads. Emkay has revised its FY12 revenue estimates upwards by 3.6 per cent to reflect higher crude oil prices.

Emkay Global

Reco price: Rs 630
Target price: Rs 760

Torrent Pharmaceuticals (TRP), with strong focus on brand building and high field force stability is gaining strong traction in metros and tier-I cities. Analysts expect domestic business to grow at 17 per cent in FY12-13E, led by growth in covered market and ramp-up of new divisions. Ebitda margin may recove
r from second half of FY12 as field force expansion (domestic) and new launches (Brazil/Mexico) start gaining traction. Analysts expect margin pressure in first half of FY12 with the Sikkim facility commencing operation in beginning of FY12.

Edelweiss Securitie        

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