Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Reviews – 3QFY2011
Mahindra and Mahindra
Mahindra and Mahindra (M&M) reported strong 36.1% yoy (12.6% qoq) top-line growth to
`6,121cr, which was in line with our expectation and aided by a robust 32.5% yoy (11.8%
qoq) jump in overall volumes and a 2.3% yoy (2.3% qoq) increase in average net realisation.
Further, a substantial increase in other operating income at `47cr (`18cr in 3QFY2010)
supported strong growth in the top line. M&M’s total market share in the UV segment and
tractor segment during 3QFY2011 stood at 62.2% and 43.3%, respectively. The company’s
EBITDA margins for 3QFY2011 came in 29bp ahead of our estimate at 15.1%, a jump of
20bp yoy; however, it fell by 138bp qoq. Margin expansion was supported by the decline in
raw-material cost as a percentage of net sales to 62.7% v/s 64.6% in 3QFY2010. However,
raw-material cost for the quarter increased by almost 58bp qoq. Better product mix along
with higher commercial vehicle volumes, improved operating leverage and cost-control
initiatives also helped the company to save on staff costs and other expenses. M&M reported
adjusted net profit growth of 49.2% yoy to `617cr (`414cr in 3QFY2010), as against our
estimate of `611cr, aided by improved operating performance and higher other income,
which increased by 72% yoy to `41.9cr (`24.4cr in 3QFY2010).
We broadly maintain our volume and earnings estimates for the company. At `654, M&M is
trading at 15.1x FY2011E and 13.8x FY2012E standalone earnings. Owing to the recent
correction in the stock price, we recommend Buy on the stock. Our SOTP Target Price for
M&M works out to `794, wherein its core business fetches `592/share and the value of its
investments works out to `202/share.
MOIL
For 3QFY2011, MOIL’s net sales decreased by 1.9% yoy to `253cr, while EBITDA increased
by 4.0% yoy to `161cr. At the CMP, the stock is trading at 4.8x FY2011E and 4.3x FY2012E
EV/EBITDA. The company is expanding its production capacity at existing mines and is
attractively valued compared to its peers. Given the current price levels, we recommend an
Accumulate rating on the stock with a Target Price of `461.
ABG Shipyard
ABG Shipyard (ABG) declared its 3QFY2011 results, which were below our estimates. The
company reported revenue growth of 12.7% yoy (down 13.0% qoq) to `482cr (excl. subsidy
of `58cr), as it delivered three vessels during the quarter, maintaining its average monthly
run-rate during 9MFY2011. However, OPM sharply declined by 171bp yoy and 918bp qoq
to 16.8% on account of a sharp increase in other expenditure. The company booked
considerably higher subsidy on a sequential basis (`1.1cr) but lower on a yoy basis (`65cr).
The company had no other income vis-a-vis a one-time gain of `34.4cr from the sale of
Great Offshore shares in 3QFY2010. Consequently, PAT declined by 35.0% yoy (5.1% qoq)
to `53.5cr. Adjusting for the subsidy income and exceptional items, PAT for the quarter
increased by 209.0% yoy but declined by 75.5% qoq to `15.4cr. We continue to remain
Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Reviews – 3QFY2011
Mahindra and Mahindra
Mahindra and Mahindra (M&M) reported strong 36.1% yoy (12.6% qoq) top-line growth to
`6,121cr, which was in line with our expectation and aided by a robust 32.5% yoy (11.8%
qoq) jump in overall volumes and a 2.3% yoy (2.3% qoq) increase in average net realisation.
Further, a substantial increase in other operating income at `47cr (`18cr in 3QFY2010)
supported strong growth in the top line. M&M’s total market share in the UV segment and
tractor segment during 3QFY2011 stood at 62.2% and 43.3%, respectively. The company’s
EBITDA margins for 3QFY2011 came in 29bp ahead of our estimate at 15.1%, a jump of
20bp yoy; however, it fell by 138bp qoq. Margin expansion was supported by the decline in
raw-material cost as a percentage of net sales to 62.7% v/s 64.6% in 3QFY2010. However,
raw-material cost for the quarter increased by almost 58bp qoq. Better product mix along
with higher commercial vehicle volumes, improved operating leverage and cost-control
initiatives also helped the company to save on staff costs and other expenses. M&M reported
adjusted net profit growth of 49.2% yoy to `617cr (`414cr in 3QFY2010), as against our
estimate of `611cr, aided by improved operating performance and higher other income,
which increased by 72% yoy to `41.9cr (`24.4cr in 3QFY2010).
We broadly maintain our volume and earnings estimates for the company. At `654, M&M is
trading at 15.1x FY2011E and 13.8x FY2012E standalone earnings. Owing to the recent
correction in the stock price, we recommend Buy on the stock. Our SOTP Target Price for
M&M works out to `794, wherein its core business fetches `592/share and the value of its
investments works out to `202/share.
MOIL
For 3QFY2011, MOIL’s net sales decreased by 1.9% yoy to `253cr, while EBITDA increased
by 4.0% yoy to `161cr. At the CMP, the stock is trading at 4.8x FY2011E and 4.3x FY2012E
EV/EBITDA. The company is expanding its production capacity at existing mines and is
attractively valued compared to its peers. Given the current price levels, we recommend an
Accumulate rating on the stock with a Target Price of `461.
ABG Shipyard
ABG Shipyard (ABG) declared its 3QFY2011 results, which were below our estimates. The
company reported revenue growth of 12.7% yoy (down 13.0% qoq) to `482cr (excl. subsidy
of `58cr), as it delivered three vessels during the quarter, maintaining its average monthly
run-rate during 9MFY2011. However, OPM sharply declined by 171bp yoy and 918bp qoq
to 16.8% on account of a sharp increase in other expenditure. The company booked
considerably higher subsidy on a sequential basis (`1.1cr) but lower on a yoy basis (`65cr).
The company had no other income vis-a-vis a one-time gain of `34.4cr from the sale of
Great Offshore shares in 3QFY2010. Consequently, PAT declined by 35.0% yoy (5.1% qoq)
to `53.5cr. Adjusting for the subsidy income and exceptional items, PAT for the quarter
increased by 209.0% yoy but declined by 75.5% qoq to `15.4cr. We continue to remain
Neutral on the stock.
No comments:
Post a Comment