Result Snapshot and Analysis Q3' 07 (Dec' 07)

Till Date: 13-Jan-08

Largecap/Midcap/Smallcap Results Analysis

Hits

1)
GM Breweries Q3 net profit up 86.02%

Snapshot:
Net sales up 10.57% y-o-y
Operating margin at 14.85% as compared to 9.99%
EPS for current quarter at Rs. 4.69

Summary:
At the current market price of 121.15 the stock trades at 7.3 times it's trailing 12 months EPS of 16.7.

2)
ABG Shipyard net up 60.81% in Dec`07 qtr

Snapshot:
Net sales up 53.83% y-o-y
Operating margin at 30.39% as compared to 30.12%
EPS for current quarter at Rs. 9.25

Summary:
At the current market price of 936 the stock trades at 28 times it's trailing 12 months EPS of 33.

3)
Prism Cement net up 28.67% for Dec`07 qtr

Snapshot:
Net sales up 20.05% y-o-y
Operating margin at 41.23% as compared to 45.36%
EPS for current quarter at Rs. 2.16

Summary:
At the current market price of 63.30 the stock trades at 8.11 times it's trailing 12 months EPS of 7.8.

4)
Axis Bank net up 66.20% for Dec`07 qtr

Snapshot:
Interest Income up 51.50% y-o-y
Profit margin at 17.02% as compared to 15.52%
EPS for current quarter at Rs. 9.09

Summary:
At the current market price of 1167 the stock trades at 39 times it's trailing 12 months EPS of 30.

5)
Rajesh Exports net soars 2.18 times in Dec`07 qtr

Snapshot:
Net sales up 10.41% y-o-y
Operating margin at 5.07% as compared to 2.16%
EPS for current quarter at Rs. 16.56

Summary:
At the current market price of 881 the stock trades at 16.62 times it's trailing 12 months EPS of 53.

6)
Infosys consolidated net up 25% for Dec`07 qtr

Snapshot:
Net sales up 15.78% y-o-y
Profit margin at 29.66% as compared to 27.74%
EPS for current quarter at Rs. 20.70

Summary:
At the current market price of 1580 the stock trades at 20.51 times it's trailing 12 months EPS of 77.

7)
Tata Metaliks swings to profit in Q3

Snapshot:
Net sales up 83.74% y-o-y
Operating margin at 11.98% as compared to 2.47%
EPS for current quarter at Rs. 6.27

Summary:
At the current market price of 187 the stock trades at 8 times it's trailing 12 months EPS of 23.5.

Other notable Hits released till now includes Jaiprakash Hydro, Jaiprakash Associates, Aban Offshore, Indian Bank, Motilal Oswal, IGate Technologies, Mastek, Steel Exchange, Ushdev and Sintex Industries.

Misses

1)
Celestial Labs net dips 45.55% for Dec`07 qtr

Snapshot:
Net sales down 26.21% q-o-q
Operating margin at 37.26% as compared to 51.17%
EPS for current quarter at Rs. 1.34

Summary:
At the current market price of 58 the stock trades at 11 times it's annualized Q3 EPS of 5.2.

2)
Bilpower net down 5.92% in Dec`07 qtr

Snapshot:
Net sales up 31.91% y-o-y
Operating margin at 11.32% as compared to 11.71%
EPS for current quarter at Rs. 7.36

Summary:
At the current market price of 297 the stock trades at 9.78 times it's trailing 12 months EPS of 30.36.

For Live Result Analysis visit the Market News page @ http://profitfrommarketnews.blogspot.com

Note :
The information above is just an update on the current quarter results. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.Please perform your analysis before entering into these scripts.

Result Snapshot and Analysis Q2' 07 (Sept' 07) - Part 2

Till Date: 20-Oct-07

Midcap/Smallcap Results Analysis

Hits

1)
Grindwell Norton net jumps 7.19 times in Sep`07 qtr

Snapshot:

Net sales up 6.04% y-o-y
Operating margin at 21.40% as compared to 20.22%
EPS for current quarter at Rs.16.49 (Includes extra ordinary item of Rs. 775 million)

Summary:

At the current market price of 133.75 the stock trades at 5.77 times it's trailing 12 months EPS of 23.16.

2)
State Bank Of Mysore net rises 53.49% for Sep`07 qtr

Snapshot:

Net sales up 45.41% y-o-y
profit margin at 14.83% as compared to 14.05%
EPS for current quarter at Rs. 253

Summary:

At the current market price of 7600 the stock trades at 9.03 times it's trailing 12 months EPS of 841.

3)
Uttam Galva net rises 10.84% for Sep`07 qtr

Snapshot:

Net sales up 32.54% y-o-y
Operating margin at 8.47% as compared to 10.90%
EPS for current quarter at Rs.2.90

Summary:

At the current market price of 39.60 the stock trades at 3.15 times it's trailing 12 months EPS of 12.56.

4)
Accentia Technologies net up 12.02 times for Sep`07 qtr

Snapshot:

Net sales up 1227% y-o-y
Operating margin at 33.11% as compared to 32.31%
EPS for current quarter at Rs.17.54

Summary:

At the current market price of 231.85 the stock trades at 6.08 times it's trailing 12 months EPS of 38.11.

5)
Godavari Fertilisers net up 47.56% in Sep`07 qtr

Snapshot:

Net sales up 24.03% y-o-y
Operating margin at 9.17% as compared to 7.97%
EPS for current quarter at Rs.15.22

Summary:

At the current market price of 149.55 the stock trades at 5.85 times it's trailing 12 months EPS of 25.55.

Note: Godavari Fertilisers sales is on a seasonal basis and the same performance may not continue in the quarters to come

6)
Prakash Industries net rises 74.31% for Sep`07 qtr

Snapshot:

Net sales up 38.43% y-o-y
Operating margin at 23.09% as compared to 23.68%
EPS for current quarter at Rs.5

Summary:

At the current market price of 128 the stock trades at 7.83 times it's trailing 12 months EPS of 16.34.

7)
Petronet LNG net up 74.31% in Sep`07 qtr

Snapshot:

Net sales up 21.48% y-o-y
Operating margin at 13.56% as compared to 11%
EPS for current quarter at Rs.1.54

Summary:

At the current market price of 73.20 the stock trades at 13.26 times it's trailing 12 months EPS of 5.52.

8)
Orchid Chemicals net doubles in Sep`07 qtr

Snapshot:

Net sales up 20.10% y-o-y
Operating margin at 34.37% as compared to 31.76%
EPS for current quarter at Rs.6.46

Summary:

At the current market price of 229.70 the stock trades at 10.32 times it's trailing 12 months EPS of 22.25.

9)
Chettinad Cement Q2 net jumps 48.55%

Snapshot:

Net sales up 25.77% y-o-y
Operating margin at 34.15% as compared to 34.97%
EPS for current quarter at Rs.16.16

Summary:

At the current market price of 436.10 the stock trades at 9.89 times it's trailing 12 months EPS of 44.07.

Misses

1)
Geometric Software consolidated net drops by 10.11% in Sep`07 qtr

Snapshot:

Net sales down 0.77% y-o-y
Operating margin at 21.09% as compared to 27.16%
EPS for current quarter at Rs.0.83

Summary:

At the current market price of 123.90 the stock trades at 17.48 times it's trailing 12 months EPS of 4.97.

Neutral

1)
Welspun India net down 8.36% in Sep`07 qtr

Snapshot:

Net sales up 6.27% y-o-y
Operating margin at 20.97% as compared to 19.94%
EPS for current quarter at Rs.2.28

Summary:

At the current market price of 62.05 the stock trades at 8.65 times it's trailing 12 months EPS of 7.17.

For Live Result Analysis visit the Market News page @ http://profitfrommarketnews.blogspot.com

Note :
The information above is just an update on the current quarter results. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.Please perform your analysis before entering into these scripts.

Rallis India - Value Buy

Rallis India is one of India's leading agrochemical companies. The company deals with pesticides, speciality fertilisers, micronutrients and seeds.

Rallis has an extensive distribution system with more than 1,500 distributors and 30,000 dealers nationwide. It also has marketing alliances with several multinational agrochemical companies, including FMC, Nihon Nihyaku, Dupont, Syngenta, Makhteshim Agan and Bayer.

Investor with Low to Medium risk horizon can consider investment into this stock with a horizon of 12 months. At the current price of Rs. 465/- the stocks trades around 5 times it's trailing 12 month EPS of 95. The current quarter results includes a one time profit from sale of land of Rs.873.8 million. Taking into account the income from company core business, excluding the one time payment on sale of land the company trades at 13.7 times it's 12 month trailing EPS of 34. At the current valuation the stock is available at a discount to it's peers like Bayer. Buy the stock with a target price of Rs. 660/- based on it's FY08E EPS of 44.

The company currently has a good domestic presence and the international business currently accounts for just 22% of the company’s revenues. The company currently is taking aggresive initiative to grow it's international business in the short to medium term. Rallis is also looking for strategic acquisitions and licensing deals in the international market to enhance it's global presence. Currently the global agrochemical business accounts for a huge $35 billion of which more than two-thirds is off-patented (without patent exclusivity) products. Rallis initiative of tapping into the off-patented international business can prove better earnings visibility and margins in the future.

Fundamentals

1) In the domestic market, Rallis is the second largest player after Bayer CropScience Ltd.
2) International business expected to grow at a faster rate in days to come.
3) Rallis currently enjoys about 14% market share in the local pesticide and crop-protection market.

Risks

1) The Company´s business is seasonal in nature and the performance can be impacted by weather conditions.
2) Delay in the initiative to increase it's international business.

Result Snapshot and Analysis Q2' 07 (Sept' 07)

Till Date: 15-Oct-07

Midcap/Smallcap Results Analysis

Hits

1)
Shri Lakshmi Cotsyn Q2 net profit up nearly 3 folds

Snapshot:
Net sales up 134% y-o-y
Operating margin at 14.58% as compared to 7.98%
EPS for current quarter at Rs.10.16

Summary:
At the current market price of 123.90 the stock trades at 3.5 times it's trailing 12 months EPS of 35.50.

2)
Bliss GVS Pharma Limited net rises around 48 times

Snapshot:
Net sales up 1900% y-o-y
Operating margin at 42.88% as compared to 27.16%
EPS for current quarter at Rs.19.38

Summary:
At the current market price of 392.80 the stock trades at 13.5 times it's trailing 12 months EPS of 29.

3)
Compact Disc net rises around 2.26 times

Snapshot:
Net sales up 74.52% y-o-y
Operating margin at 19.86% as compared to 15.33%
EPS for current quarter at Rs.4.41

Summary:
At the current market price of 67.55 the stock trades at 4.65 times it's trailing 12 months EPS of 14.5.

4)
Mangalam Timber continues to be in profit

Snapshot:
Net sales down 5.5%
Operating margin at 22.72% as compared to 3.10%
EPS for current quarter at Rs.1.29

Summary:
At the current market price of 27.75 the stock trades at 8 times it's trailing 12 months EPS of 3.5.

5)
Himalya International net jumps around 91%

Snapshot:
Net sales up 31.88%
Operating margin at 30.23% as compared to 23.92%
EPS for current quarter at Rs.1.15

Summary:
At the current market price of 17.55 the stock trades at 6.1 times it's trailing 12 months EPS of 2.86.

5)
Rallis India Limited

Snapshot:
Net sales up 16.55%
Operating margin at 49.23% as compared to 30.29%
EPS for current quarter at Rs.83.39

Summary:
At the current market price of 497.60 the stock trades at 5.23 times it's trailing 12 months EPS of 95.

Misses

1)
Abhishek Industries

Snapshot:
Net sales up 36.8%
Operating margin at 15.89% as compared to 24.85%
EPS for current quarter at Rs.0.39

Summary:
At the current market price of 20.60 the stock trades at 11.31 times it's trailing 12 months EPS of 1.82.

For Live Result Analysis visit the Market News page @ http://profitfrommarketnews.blogspot.com

Note :
The information above is just an update on the current quarter results. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.Please perform your analysis before entering into these scripts.

Buy Hotel Leela venture

Investor with medium to high risk appetite can consider investment into Hotel Leela venture with a horizon of 24 months+. Hotel Leela venture operates in the premium 5-star deluxe category owning 4 hotels in Bangalore, Goa, Kovalam and mumbai with a total of 1086 rooms.

At the current market price of Rs. 49 the stock trades at 15 times it FY08E EPS. Offlate hotel industry in Bangalore is witnessing decline in ARR (Average Room Rate) and Bangalore accounting 46% of it's revenue can impact the company's topline. On the other hand the declining ARR will be offset by better realization from the mumbai property which contributes to 32% of it's revenue.

Since there is no major additions coming on before FY09, the current market price justifies it's forward earnings. Investor considering investment into this stock can buy on declines.

Betting on upcoming projects as below

1) The company is Expanding operation by developing projects in Delhi, Chennai, Pune, Hyderabad and Udaipur.
2) Entered into a Contract for management of The Leela Kempinski Gurgaon, Delhi (NCR) 319 room, and The Leela Residences Kempinski gurgaon 90 serviced residences.
3) Additional 29 more rooms are being added in Goa and also setting up an IT park and a Commercial Complex in Chennai.

The above projects are expected to be completed by FY09 and FY10. The company plans to double it's room count after the implementation of the above projects. The company has opened sales and marketing offices in London, Dubai and appointed GSA in singapore.

After the complete expansion in place the company's revenue is set to grow @75% p.a. The stock can prove on to be a good multibagger play.

Fundamentals

1) The average occupancy rate is around 80%.
2) Strong presence in 5-star deluxe category.
3) Aggressive capex to add exponentially to the revenues.

Risks

1) A slowdown in economy can reduce the occupancy rate and also the ARR.
2) Bangalore accounting for 45% of its revenues, earnings remain vulnerable to decline in tariffs and occupancies.
3) With number of luxury service apartments increasing in last couple of years, corporate occupancy is set to decline.
4) Strong rupee appreciation can offset the margin's partially for dollar based room tariff's.

Dish TV - A Turn around story

Before I begin, If you are a short term trader please skip this recommendation.

Dish TV is one of the early entrant in the Direct-to-home (DTH) arena and currently the only listed player in this segment. As of 30th June'07 Dish TV has a strong 2.1 million subscribers. The company is currently investing to acquire subscribers and is yet to break even. The average cost of customer acquisition currently is around Rs. 2000/- per subscriber. Dish TV currently enjoys a market share of 75% in the DTH business which is going to provide a better edge for the firm when competition steps up with new entrants. The company currently has 170 channels in it's basket, which is the highest in the industry.

Dish TV is currently present in 4300 towns through more than 30000 dealers and 400 distributors. There are over 10000 service personals and 1000 call center agents to deliver more value to customers. Currently top 50 cities accounts to 33% of the subscriber base which shows the demand is equally distributed across pan India and not only in metros.

Based on the Estimates the company is expected to generate Operating profit by FY09 and net profit by FY10. Considering the current demand scenario analyst estimates the subscriber base to grow at compounded annual growth rate of 25% till FY12. The existing subscriber investment is expected to add on to the revenue growth by around 20-35% q-o-q.

The company is currently moving around it's 52 week low of Rs. 69/-. Adopt a invest on decline strategy on this stock. Invest in smaller chunks at regular intervals rather than having it brought in lots.

Fundamentals

1) Market share of 75% in the DTH segment.

2) The company has a established dealers and distributors network and wide coverage across pan India.

Risks

1) The company is currently a loss making firm. It has a negative operating profit till date.

2) Stiff competition expected from new entrants like Reliance, Sun, Barathi etc. in the years to come.

3) Initial investment being made currently per customer acquisition and advertisement costs is likely to impact the operating profit for sometime.

4) The company is planing an additional capex of Rs. 1300 crores through debt and equity. This inturn will increase the interest expense and can further dampen the earnings visibility.

5) Customer service being a key to this industry, the firm is expected to increase the on call personals and call center executive for faster and prompt service. This inturn is going to add to the expenses of the company.

Buy Chennai Petroleum

Despite it's strong underlying business, Chennai Petroleum (CPCL) has always maintained a low profile as compared to it's peers like BRPL and MRPL. With strong GRM's and refinery capacity expansion CPCL outlook seems to be positive and is expected to fetch better valuation going forward.

At the current market price of Rs. 280/- the stock traders at 7.3 times it's trailing 12 month EPS. The net profit in Q1 FY08 increased by 27% y-o-y despite 4% drop in revenues. The decrease in revenue seems to be attributed to the 15 days shutdown of one of CPCL's distillation unit. The Gross Refining Margin during the first quarter was an impressive US $8.76 per bbl as compared to US $6.64 per bbl during the corresponding quarter of the previous year. CPCL Q1 FY08 OPM stands at 7.28% as compared to FY07 OPM of 4.89%, thanks to the strong GRM's.

CPCL expects the Q2 GRM to be around the range of US $7.5 per bbl and the whole FY08 GRM in the range of USD $5.5-7. Based on the long term crude price assumption of USD 60/bbl and Re/USD assumption of USD 40 the stock trades around 5.8 times it's FY08E EPS of 48. Based on the factors discussed earlier CPCL has a target of Rs. 355/- with a time frame of 12 months.

Fundamentals

1) The company is expected to increase their refining capacity to about 12 million tonnes from the current 10.5 million tonnes by mid 2009.

2) Excellent and consistent financial track record.

3) Good track record of consistent and high dividend payment.

Risks

1) Stronger rupee can offset the realization by better GRM's.

2) Drop in price of CPCL products in International Markets.

Venkys India

At the current market price of Rs. 180/- the stock trades at 6 times it FY08E earnings of 30 per share. Investor with a medium risk profile can consider position in this stock for a duration of 9 to 12 months with a target of Rs.250. The company has seen a substantial increase in Operating margins during the last two quarters and is expected to maintain the same margin levels in the current year.

Venky's India is engaged in poultry breeding, processed chicken, poultry medicines, producing eggs and hatching layer. Venky's has a strong domestic presence and the domestic sales is expected to grow 15% this year. The company has annual service contracts with multinational giants like Domino's, Pizza Hut, KFC and McDonald's. Venky's has strong export presence in middle east and Asia pacific region. The revenues from export is expected to grow at around 30% this year.

Fundamentals:

1) Diversified product portfolio.

2) Government policy initiatives for agricultural projects.

3) Strong client portfolio.

Risks:

1) Bird flu which has been off late seen frequently appearing in some of the Asian countries can dampen the revenue forecast.

2) Competition from countries like Thailand, Vietnam and china which operate on lower cost.