markettrend766
06-10-2008, 07:12 AM
Brokers’ byte
Company: ABG Shipyard Ltd.
Broking House: Asit C. Mehta
Current Price: Rs 269.60
ABG Shipyard has a robust order book with a contract value of Rs 8,960 crore. Of this, orders worth Rs 1,600 crore have been already executed. The order book mainly consists of bulk carriers and offshore vessels and 44 per cent of the orders are repeat orders. The order book backlog is 7.4 x times FY08 revenues and is to be executed over 2013-14, leading to strong revenue visibility. The company has also to secured Rs 5,300 crore worth of orders in bulk carrier segment in last few years. The company’s capacity expansion at Surat and Dahej (bulk carrier) will facilitate timely execution of orders, while expansion at Dahej II will help it tap replacement demand for rigs. The broking house has a ‘buy’ rating for the stock.
Company: HCL Technology Ltd
Broking House: Prabhudas Lilladher
Current Price: Rs 206.00
HCL Technologies has entered the fray to acquire Axon, by submitting a counter offer of 650p per share as against Infosys’ 600p per share. This values Axon at £441 million and is a premium of 8.3 per cent to Infosys’ offer. Infosys is expected to improve its 600p offer to either match or exceed HCL. HCL’s need to grow its EAS services makes Axon, a focused SAP player, an attractive acquisition candidate. It is likely that the battle for Axon will be a protracted one, possibly going on for the next few months. Uncertainty over the outcome of the bidding battle will put some pressure on the stocks in the near-term. The broking house has recommended an ‘accumulate’ rating on the stocks from a 12-month perspective.
Company: Cadila Healthcare Ltd
Broking House: Emkay
Current Price: Rs 315.05
Cadila Healthcare has been bogged down by various concerns like loss of revenue due to the generic launch of Pantoprazole, its foray into newer markets impacting profitability and slack domestic growth. However, the earnings from Hospira JV are likely to moderate the negative impact of Pantoprazole generic launch. The international business too will be a key growth driver for Cadila. The growth in the US (30 per cent), France (22.5 per cent) and Brazil (21 per cent) are expected to result in 28 per cent revenue CAGR in the international business during FY08-10E. The company’s domestic business, with its large size, lends stability to the company’s operations and we view it as a cash cow to fund its international expansion. The broking house has put a ‘buy’ rating on the stock.
Company: ABG Shipyard Ltd.
Broking House: Asit C. Mehta
Current Price: Rs 269.60
ABG Shipyard has a robust order book with a contract value of Rs 8,960 crore. Of this, orders worth Rs 1,600 crore have been already executed. The order book mainly consists of bulk carriers and offshore vessels and 44 per cent of the orders are repeat orders. The order book backlog is 7.4 x times FY08 revenues and is to be executed over 2013-14, leading to strong revenue visibility. The company has also to secured Rs 5,300 crore worth of orders in bulk carrier segment in last few years. The company’s capacity expansion at Surat and Dahej (bulk carrier) will facilitate timely execution of orders, while expansion at Dahej II will help it tap replacement demand for rigs. The broking house has a ‘buy’ rating for the stock.
Company: HCL Technology Ltd
Broking House: Prabhudas Lilladher
Current Price: Rs 206.00
HCL Technologies has entered the fray to acquire Axon, by submitting a counter offer of 650p per share as against Infosys’ 600p per share. This values Axon at £441 million and is a premium of 8.3 per cent to Infosys’ offer. Infosys is expected to improve its 600p offer to either match or exceed HCL. HCL’s need to grow its EAS services makes Axon, a focused SAP player, an attractive acquisition candidate. It is likely that the battle for Axon will be a protracted one, possibly going on for the next few months. Uncertainty over the outcome of the bidding battle will put some pressure on the stocks in the near-term. The broking house has recommended an ‘accumulate’ rating on the stocks from a 12-month perspective.
Company: Cadila Healthcare Ltd
Broking House: Emkay
Current Price: Rs 315.05
Cadila Healthcare has been bogged down by various concerns like loss of revenue due to the generic launch of Pantoprazole, its foray into newer markets impacting profitability and slack domestic growth. However, the earnings from Hospira JV are likely to moderate the negative impact of Pantoprazole generic launch. The international business too will be a key growth driver for Cadila. The growth in the US (30 per cent), France (22.5 per cent) and Brazil (21 per cent) are expected to result in 28 per cent revenue CAGR in the international business during FY08-10E. The company’s domestic business, with its large size, lends stability to the company’s operations and we view it as a cash cow to fund its international expansion. The broking house has put a ‘buy’ rating on the stock.