markettrend766
24-11-2008, 05:15 AM
Company: JSPL
Broking House: Edelweiss
Current Price: Rs 667.85
Jindal Steel and Power Ltd (JSPL) has ramped up its merchant power plant’s capacity to 1,000 MW in September 2008 as per the original schedule. This should help keep the company’s earnings to remain relatively stable next year compared to the peers. The average realisations of JSPL’s steel business is expected to dip 15 per cent in 2008-09 and 32 per cent in 2009-10, implying an overall increase of eight per cent y-o-y in the 2009 fiscal and decline of 17 per cent y-o-y in 2009-10 in realisations. Led by expectations of lower steel product realisations, the broking house has cut the earnings per share estimate for 2009-10 to Rs 121. It has downgraded the recommendation on the stock from accumulate to reduce.
Company: GCPL
Broking House: Motilal Oswal Ltd
Current Price: Rs 114.60
Godrej Consumer Products Ltd is expected to report strong margin expansion in toilet soaps segment and improved volumes in the hair colour segment in 2009-10. A 60 per cent decline in palm oil prices from the peak and six price increase in the company’s products, from August is expected to expand margins in toilet soap segment from the third quarter of this fiscal. The stabilisation of the company’s newly acquired South African hair care brand Kinky will be a key contributor to its profits in 2009-10. The improved margin is expected to result in profit after tax growth accelerating to 31 per cent in the next fiscal compared to the mediocre two per cent in 2008-09. The broking house maintains a ‘buy’ rating on the stock.
Company: Thermax Ltd
Broking House: Asit C.Mehta
Current Price: Rs 200.05
Thermax Limited has signed a 15-year technology transfer licence agreement with Babcock and Wilcox Power Generation Inc (B&W) for sub-critical utility boilers up to 800MW. This move opens up a huge market for Thermax, given the likelihood of the substantial spending in the power sector over the next five years. The company has secured orders worth Rs 2,250 crore, up 127 per cent y-o-y during the second quarter of this fiscal. The broking house expects the revenues to register a CAGR of 19 per cent between 2008 and 2010 with earnings growth of 15 per cent during the same period. The broking house reinitiates coverage on Thermax Ltd with a ‘buy’ at Declines recommendation for a target price of Rs 280.
Broking House: Edelweiss
Current Price: Rs 667.85
Jindal Steel and Power Ltd (JSPL) has ramped up its merchant power plant’s capacity to 1,000 MW in September 2008 as per the original schedule. This should help keep the company’s earnings to remain relatively stable next year compared to the peers. The average realisations of JSPL’s steel business is expected to dip 15 per cent in 2008-09 and 32 per cent in 2009-10, implying an overall increase of eight per cent y-o-y in the 2009 fiscal and decline of 17 per cent y-o-y in 2009-10 in realisations. Led by expectations of lower steel product realisations, the broking house has cut the earnings per share estimate for 2009-10 to Rs 121. It has downgraded the recommendation on the stock from accumulate to reduce.
Company: GCPL
Broking House: Motilal Oswal Ltd
Current Price: Rs 114.60
Godrej Consumer Products Ltd is expected to report strong margin expansion in toilet soaps segment and improved volumes in the hair colour segment in 2009-10. A 60 per cent decline in palm oil prices from the peak and six price increase in the company’s products, from August is expected to expand margins in toilet soap segment from the third quarter of this fiscal. The stabilisation of the company’s newly acquired South African hair care brand Kinky will be a key contributor to its profits in 2009-10. The improved margin is expected to result in profit after tax growth accelerating to 31 per cent in the next fiscal compared to the mediocre two per cent in 2008-09. The broking house maintains a ‘buy’ rating on the stock.
Company: Thermax Ltd
Broking House: Asit C.Mehta
Current Price: Rs 200.05
Thermax Limited has signed a 15-year technology transfer licence agreement with Babcock and Wilcox Power Generation Inc (B&W) for sub-critical utility boilers up to 800MW. This move opens up a huge market for Thermax, given the likelihood of the substantial spending in the power sector over the next five years. The company has secured orders worth Rs 2,250 crore, up 127 per cent y-o-y during the second quarter of this fiscal. The broking house expects the revenues to register a CAGR of 19 per cent between 2008 and 2010 with earnings growth of 15 per cent during the same period. The broking house reinitiates coverage on Thermax Ltd with a ‘buy’ at Declines recommendation for a target price of Rs 280.