This pdf contains some amazing stocks that may give you explosive return over one year period.
Plz have a look at pdf.
Plz have a look at pdf.
Positives
Strong revenue growth guidance of 25% for FY12
Order inflow growth guidance of 15%
Delhi airport in FY11 to limit margin fall
Potential write-back of provisions created for
Downside risk to earnings limited
Key risks
Macro economic uncertainties may cap orders
Higher raw input costs could hurt margins
ITC
Positives
business
Market leader in the demand-inelastic cigarettes
cost inflation
High pricing power, hence less impacted by input
FMCG business closing in towards breakeven
packaging and hotels growing strong
Other businesses viz, agri, paperboard &
Key risks
Trading at higher end of historical valuations
A mid-year excise duty hike could hurt volumes
DR. REDDY’S LABORATORIES
Positives
pending with US FDA for approval
Strong pipeline in the US business; 76 ANDAs
of strong traction in the OTC business
Robust growth in Russia continues on the back
Ten product launches in FY12
Strong growth in API business
Key risks
Muted India sales in some products
in Germany
Difficult pricing scenario hits revenue growth
HDFC BANK
Positives
Consistent track record of strong earnings
quality due to small exposure to stress sectors
High asset quality, including lowest risk on asset
to support margins
Robust borrowing mix with high CASA of 49%
floating provision it is at over 125 %)
High provision coverage ratio of 83% (including
Key risks
interest rate scenario
Moderating loan growth and NIMs in a high
Benign retail asset quality
BHARAT PETROLEUM
Positives
exploration activities in Brazil over the next
two years
Likely to derive significant value from its
Ramp, up in Bina refinery to boost GRMs
well as fuel price deregulation
Key beneficiary of cooling crude oil prices as
Trading at attractive valuations
Key risks
overhang on the stock
Uncertainty regarding subsidy burden a major
BAJAJ AUTO
Positives
Growth visibility supported by strong volumes
attractive valuations
Better return ratios, good dividend payout and
Better revenue mix will help sustain margins
and ramp up capacity
Focus on leading brands, drive to grow exports
Key risks
Increasing competition
Rise in commodity prices could hurt margins
MAHINDRA & MAHINDRA
Positives
enabling it to capture rising rural demand
M&M dominates the domestic tractors market
Enjoys good pricing power in tractors & UVs
lead incremental volume growth
The launch of its sub-tonne Maxximo and Gio to
Long-term gains from Ssangyong Motors buy
Key risks
M&M, as its entire portfolio is diesel-based
Higher duties on diesel vehicles would impact
Higher interest rates may also impact demand
TATA STEEL
Positives
Strong business model and attractive valuations
volume growth and better margins
Cash flows are expected to grow, driven by
6.8 million tonnes to 10 million tonnes moving fast
Projects in Jamshedpur to expand capacity from
after its recent restructuring at Scunthrope
Tata Steel Europe (TSE) to come out stronger
Room for TSE to improve productivity
Key risks
Demand scenario in Europe
Lower steel prices could impact earnings
SBI
Positives
do well with better loan growth
With interest rates expected to ease, SBI should
It has been able to protect its margins well
provisioning coverage is near mandated levels
Even if there are concerns over asset quality,
Market leader trading at attractive valuations
Key risks
Higher interest rates
Tightness in the G-sec yields
CMP DIV YIELD FY12 P/E FY12 P/BV
1,610 0.9 18.8 3.3
29%
CMP DIV YIELD FY12 P/E FY12 P/BV
1,494 0.8 16.6 4.2
22%
CMP DIV YIELD FY12 P/E FY12 P/BV
200 2.2 24.2 8.5
13%
CMP DIV YIELD FY12 P/E FY12 P/BV
472 0.7 21.6 3.7
30%
CMP DIV YIELD FY12 P/E FY12 P/BV
674 2.1 11.8 1.5
20%
COAL INDIA
Positives
India
Key beneficiary of the structural coal deficit in
tonnes (25% of total) by FY17 spurring margins
Washed coal volumes will surge to 150 million
than import parity price of coal
Average realisation for CIL is still 50% lower
Largest coal reserves in the world of 22 bln tonnes
Key risks
Plan of 26% profit sharing for local development
Inability to get environmental clearances or land
AXIS BANK
Positives
brisk pace of 25% plus in FY11-13
The bank’s loan book is expected to grow at a
Stable margins and healthy asset quality
drive retail fee income
Growing franchise, new products will further
of 40% with HDFC Bank will narrow
As it delivers consistent earnings, valuation discount
Key risks
in higher slippages and slow down in business
Deterioration of macro environment can result
PANTALOON RETAIL
Positives
more income to consumption, lifestyle products
Growing trend among consumers to allocate
Allowing FDI in multi-brand retailing
assets over next 12-18 months and reduce debt
The company plans to monetise its non-retail
Valuation of investment in subsidiaries is worth
`
3,000-4,000 crore
Key risks
Higher inventory days remain
Slow revenue growth due to rollout delays
BHARTI AIRTEL
Positives
by improvement in rates
Turning point for Indian telecom industry led
in voice revenue per minute (RPM) and margins
Rate hikes should lead to gradual improvement
3G services will also add 3-5% to RPM by FY13
augur well and will boost earnings in coming years
Its African business and improving cash flows
Key risks
Any move to reverse rate hike will hit profits
Trai recommendations on spectrum
CMP DIV YIELD FY12 P/E FY12 P/BV
375 1.0 13.6 5.2
23%
RELIANCE INDUSTRIES
Positives
led by huge operating cash flow and proceeds
from BP
Company will be net cash positive in FY12,
E&P business not fullly reflecting in valuations
years will boost its earnings significantly
Doubling of petchem capacity in the next 2-3
Key risks
Higher cash allocation to unrelated areas
refining businesses
Slowdown in global petrochemicals and
CMP DIV YIELD FY12 P/E FY12 P/BV
782 0.9 10.6 1.1
48%
REDINGTON INDIA
Positives
at a fast pace
India, which is 61% of PBIT, continues to grow
and iPad segments
High growth and potential in the smart phone
capital cycle
Strategic initiative to improve the working
and benefits from GST implementation
Value unlocking from business such as NBFC
Key risks
Further interest rate hikes
Currency fluctuation
CMP DIV YIELD FY12 P/E FY12 P/BV
96 1.2 13.3 2.1
34%
JINDAL STEEL & POWER
Positives
power and steel assets
Current valuations only reflect the operational
iron ore assets not fully reflected in valuations
Power expansion by 4,400 Mw, foreign coal and
Cost of power & steel production among lowest
by volume expansion
Earnings to grow at about 22% annually, backed
Key risks
Final outcome of draft mining bill
Decline in global commodity prices
CMP DIV YIELD FY12 P/E FY12 P/BV
520 0.2 10.3 2.6
35%
GLENMARK PHARMA
Positives
market by 16 % during FY11-13
Niche product launch to drive growth in the US
business to grow at 16% during FY11-13
With an increase in market share, domestic
Valuations are lower compared to peers
Upside from other products in the pipeline
Key risks
million, though it will appeal in higher court
Lost Abbott and Sanofi cases, liable to pay $16
Pricing pressure in the US market
CMP DIV YIELD FY12 P/E FY12 P/BV
325 0.1 13.2 3.3
20%
CIPLA
Positives
Company is the best play on emerging markets
products to drive growth in the medium term
Supply agreements with 22 US players for 118
to Europe will be a key positive.
Commencement of exports of CFC-free inhalers
earnings for FY12/13.
Potential MNC contracts are likely to improve
Key risks
pricing
New pharma policy creates uncertainty over
could result in a significant cash outflow
NPPA liability of ` 1,200 crore (if it materialises)
CMP DIV YIELD FY12 P/E FY12 P/BV
280 1.0 20.9 3.0
29%
JAIN IRRIGATION
Positives
30% annually over the next five years
MIS business, which is 50% of sales, will grow
higher farm income and government initiatives
Growth is backed by expansion in new states,
Improvement in capital efficiency
EV/Ebitda
Stock trading at 6-year median level at
Key risks
Capital allocation to non-MIS business
Slow turnaround in overseas markets
CMP DIV YIELD FY12 P/E FY12 P/BV
172 0.5 17.2 3.4
29%
GODREJ CONSUMER
Positives
Firm growth in all its major categories
to add to margins
Soft commodity prices and product price hike
Earnings surprise could come from Darling acquisition
two years
Earnings growth of 21 per cent over the next
Key risks
Rising competition in key segments
Sharp rise in prices of inputs
CMP DIV YIELD FY12 P/E FY12 P/BV
425 1.4 24 6.6
12%
CMP DIV YIELD FY12 P/E FY12 P/BV
1,075 1.3 10.4 2.0
63% CMP DIV YIELD FY12 P/E FY12 P/BV
294 0.3 24.7 1.8
23%
CMP DIV YIELD FY12 P/E FY12 P/BV
738 1.6 15.7 3.7
4%
CMP DIV YIELD FY12 P/E FY12 P/BV
1,571 2.5 15.6 7.2
12%
CMP DIV YIELD FY12 P/E FY12 P/BV
404 0.3 19.6 2.6
31%
CMP DIV YIELD FY12 P/E FY12 P/BV
469 2.6 6.8 1.4
58%
CMP DIV YIELD FY12 P/E FY12 P/BV
1,946 1.5 10.5 1.7
54%
Amid slowing growth and global uncertainties, here are the top recommendations of leading research houses
TAKE 20: STOCKS YOU CAN GAIN FROM
The stock recommendations
are of
Edelweiss Research,
ENAM Securities, Macquarie
Research
Securities
figures are estimates
and Motilal Oswal. All FY12 & FY13
LARSEN & TOUBRO
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