Angel Broking: Result Previews – 3QFY2011, Nagarjuna, Cipla,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Result Previews – 3QFY2011
Cipla
Cipla is scheduled to announce its 3QFY2011 results. We expect the company to post net
sales growth of 15.4% to `1,552cr, driven by exports. On the operating front, OPM
(excluding technical know-how fees) is expected to fall by 86bp yoy to 20.4% on the back of
higher employee expenses. Further, net profit is expected to register a decline of 9.5% yoy to
`261cr, as top-line growth will be offset by the fall in OPM. We currently have a Buy rating
on the stock with a Target Price of `388.

Nagarjuna Construction Company
Nagarjuna Construction Company is expected to announce its 3QFY2011 results. We
project the company to post decent revenue growth of 22.3% yoy for 3QFY2011 to
`1,452cr. Management has guided for revenue growth of ~20% for FY2011 (standalone),
which implies growth of >25% in 2HFY2011. We expect the company to deliver as per
management guidance, given its diversified order book and consistent performance over the
past quarters. We project stable EBITDA margins of 9.6% and net profit growth of 9.3% for
the quarter to `52.3cr, assuming a tax rate of 37.5%. We maintain our Buy rating on the
stock with a Target Price of `196.