Thursday, February 3, 2011

Analysts' corner Bse Nse Stock

DLF Reco Price: Rs 221, 
Target Price: Rs 205 
DLF’s management continued to sound highly optimistic on its business outlook and still hopes to meet its earlier guidance of 12mn sq ft of home sales in 2010-11. Accounting for the 6.5 mn achieved in 9M (including c.1mn of plotted sales), this implies 6-7 mn sq ft of fresh sales booking in the 4Q alone. While DLF has indicated a launch pipeline of 8 mn sq ft for the 4Q, analysts believe the target is highly optimistic. On the other hand, lease momentum is picking up well and DLF appears on-track to clock 5mn sq ft of fresh lease in 2010-11. Maintain sell.

— JM Financials

NTPC Reco Price: Rs 185, 

Target Price: Rs 199 
Adjusted net profit came in at Rs 2,320 crore (up 15 per cent y-o-y). Power generation increased by a muted one per cent to 54.7 bn units, as an extended monsoon restricted demand growth and state utilities instructed NTPC to back down generation. Units sold increased in line with the growth in generation, by one per cent y-o-y to 51.3 bn units. Average realisations grew in line with estimates by 23 per cent to Rs2.64 a unit, led by incentives on higher plant availability during the quarter. Maintain neutral.

— IDFC Securities


AHLUWALIA CONTRACTS Current Price: Rs 136.3, 

Fair Value: Rs 202
CARE Equity Research assigns fundamental grade of 4 on 5 to Ahluwalia Contracts (India) Limited (ACIL), indicating very good fundamentals. ACIL’s significant and increasing order-book of Rs. 6,000-crore provides revenue visibility of around two years. However, the order-book is primarily biased towards the private sector. Any slow-down in the real estate sector and/or the corporate capital expenditure would hurt the company in terms of sluggish order inflows. The company’s recent foray into BoT projects and power sector will help it mitigate the said risks and improve revenue visibility over the long term. High working capital cycle, which is the characteristic of this industry, is also a challenge for the company.

— CARE Equity Research

PVR Reco Price: Rs 132, 

Target Price: NA 
PVR’s Q3FY11 exhibition business revenue and net profit stood at Rs 1,03 crore and Rs 8 crore up 5 per cent and down 6 per cent, respectively. Q3FY11 Ebitda margin for the exhibition business stood at 20.5 per cent. The company enjoyed 28 per cent occupancy in Q3FY11 against 37 per cent in Q3FY10. Occupancies in Q3FY11 were adversely impacted on account of poor performance of movies such as Action Replay, Khelein Hum Jee Jaan Sey, Guzaarish, No Problem, Tees Mar Khan against Q3FY10 that saw the release of 3 Idiots and Ajab Prem Ki Ghajab Kahani. Footfalls increased 2 per cent. ATP for the quarter grew at 5 per cent over Q3FY10. F&B spending per head and advertising & royalty income increased 3 per cent and 35 per cent, yoy, respectively. Company’s movie production and distribution segment reported EBIT level loss of Rs 18 crore against profit of Rs 0.9 crore in Q2FY11. PVR's new businesses such as movie production and distribution and alternative entertainment are expected to contribute positively to the company’s overall performance. Maintain buy.

— Edelweiss Securities Limited        
 



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