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1QFY2012 Result Preview
Axis Bank
Axis Bank is slated to announce its 1QFY2012 results. We expect the bank to report
healthy NII growth of 21.0% yoy to `1,832cr. NIM on a sequential basis is likely to remain
flat with a downward bias. Non-interest income is expected to increase by 25.9% yoy to
`1,260cr. Cost-to-income ratio is expected to increase to 45.0% from 42.3% on a yoy
basis due to the recent strong branch expansion and wage inflation. Pre-provision profit of
the bank is expected to register 17.4% yoy growth. However, owing to lower provisioning
burden, net profit is expected to increase by 27.1% yoy to `943cr.
The stock is currently trading at attractive valuations of 2.0x FY2013E ABV (more than 40%
discount to HDFC Bank, despite similar earnings quality, profitability and growth
expectations over FY2011–13). Hence, we maintain our Buy recommendation with a target
price of `1,650.
Union Bank of India
Union Bank of India is scheduled to announce its 1QFY2012 results. We expect the bank
to post healthy NII growth of 28.7% yoy (1.1% qoq) to `1,735cr. Non-interest income is
expected to drop by 1.9% yoy and 29.0% qoq to `427cr. Pre-provision profit of the bank is
expected to increase by 13.6% yoy. Net profit is expected to increase moderately by 5.0%
yoy and 5.6% qoq to `631cr on account of higher provisions. At the CMP, the stock is
trading at valuations of 1.1x FY2013E ABV. We maintain our Buy view on the stock with a
target price of `357.
Colgate
Colgate is expected to announce its 1QFY2012 results. For the quarter, we expect the
company to post modest 13.9% yoy growth in its top line to `603cr, aided by steady
volume growth. Earnings for the quarter are expected to register 4.9% yoy growth to
`128.0cr, primarily led by margin expansion of 152bp yoy to 24.8%. We maintain our
Reduce view on the stock with a target price of `874.
Allahabad Bank
Allahabad Bank is scheduled to announce its 1QFY2012 results. NII is expected to grow by
36.5% yoy (0.8% qoq) to `1,161cr. Non-interest income is expected to grow moderately by
8.2% yoy (down 31.2% qoq) to `323cr. We expect provisioning expenses to increase
substantially by 162.2% yoy to `396cr. Net profit is expected to grow marginally by 3.0%
yoy (healthy 38.8% qoq) to `358cr. At the CMP, the stock is trading at valuations of 1.0x
FY2013E ABV. We maintain our Accumulate view on the stock with a target price of `222.
Thermax
Thermax is scheduled to announce its 1QFY2011 results. The company’s net sales are
expected to increase by 14.1% yoy to `901cr. OPM is expected to contract by 115bp yoy to
11%. Net profit is expected to increase by 1.6% yoy to `67cr. The stock is currently trading
at 18.2x FY2012E and 14.2x FY2013E earnings. Currently, we remain Neutral on the
stock, but will revise our estimates post the conference call.
FAG Bearings – 2QCY2011
FAG Bearings is set to announce its 2QCY2011 results. The company is expected to deliver
19% yoy growth in revenue to `322cr. On the operating front, we expect the company to
post a 37bp yoy improvement in its operating profit margin to 19.5%. Thus, net profit is
expected to increase substantially by 24% yoy to `42cr. The stock rating is under review.
NIIT
NIIT is expected to announce its 1QFY2012 results. We expect the company’s revenue to
grow by 9.7% yoy to `305cr. Revenue for the individual learning solution (ILS-IT), school
learning solution (SLS) and corporate learning solution (CLS) segments is expected to grow
by 10%, 15% and 6% yoy to `100cr, `44cr and `146cr, respectively. Revenue from the
new business is expected to grow at a scorching pace of 35% yoy to `15cr. We expect the
company’s EBITDA margin to decline by 632bp yoy to 9.8%, majorly due to an 843bp yoy
decline in the EBITDA margin of the SLS segment. PAT is expected to be at `11.4cr. We
maintain our Buy view on the stock with an SOTP target price of `68.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY2012 Result Preview
Axis Bank
Axis Bank is slated to announce its 1QFY2012 results. We expect the bank to report
healthy NII growth of 21.0% yoy to `1,832cr. NIM on a sequential basis is likely to remain
flat with a downward bias. Non-interest income is expected to increase by 25.9% yoy to
`1,260cr. Cost-to-income ratio is expected to increase to 45.0% from 42.3% on a yoy
basis due to the recent strong branch expansion and wage inflation. Pre-provision profit of
the bank is expected to register 17.4% yoy growth. However, owing to lower provisioning
burden, net profit is expected to increase by 27.1% yoy to `943cr.
The stock is currently trading at attractive valuations of 2.0x FY2013E ABV (more than 40%
discount to HDFC Bank, despite similar earnings quality, profitability and growth
expectations over FY2011–13). Hence, we maintain our Buy recommendation with a target
price of `1,650.
Union Bank of India
Union Bank of India is scheduled to announce its 1QFY2012 results. We expect the bank
to post healthy NII growth of 28.7% yoy (1.1% qoq) to `1,735cr. Non-interest income is
expected to drop by 1.9% yoy and 29.0% qoq to `427cr. Pre-provision profit of the bank is
expected to increase by 13.6% yoy. Net profit is expected to increase moderately by 5.0%
yoy and 5.6% qoq to `631cr on account of higher provisions. At the CMP, the stock is
trading at valuations of 1.1x FY2013E ABV. We maintain our Buy view on the stock with a
target price of `357.
Colgate
Colgate is expected to announce its 1QFY2012 results. For the quarter, we expect the
company to post modest 13.9% yoy growth in its top line to `603cr, aided by steady
volume growth. Earnings for the quarter are expected to register 4.9% yoy growth to
`128.0cr, primarily led by margin expansion of 152bp yoy to 24.8%. We maintain our
Reduce view on the stock with a target price of `874.
Allahabad Bank
Allahabad Bank is scheduled to announce its 1QFY2012 results. NII is expected to grow by
36.5% yoy (0.8% qoq) to `1,161cr. Non-interest income is expected to grow moderately by
8.2% yoy (down 31.2% qoq) to `323cr. We expect provisioning expenses to increase
substantially by 162.2% yoy to `396cr. Net profit is expected to grow marginally by 3.0%
yoy (healthy 38.8% qoq) to `358cr. At the CMP, the stock is trading at valuations of 1.0x
FY2013E ABV. We maintain our Accumulate view on the stock with a target price of `222.
Thermax
Thermax is scheduled to announce its 1QFY2011 results. The company’s net sales are
expected to increase by 14.1% yoy to `901cr. OPM is expected to contract by 115bp yoy to
11%. Net profit is expected to increase by 1.6% yoy to `67cr. The stock is currently trading
at 18.2x FY2012E and 14.2x FY2013E earnings. Currently, we remain Neutral on the
stock, but will revise our estimates post the conference call.
FAG Bearings – 2QCY2011
FAG Bearings is set to announce its 2QCY2011 results. The company is expected to deliver
19% yoy growth in revenue to `322cr. On the operating front, we expect the company to
post a 37bp yoy improvement in its operating profit margin to 19.5%. Thus, net profit is
expected to increase substantially by 24% yoy to `42cr. The stock rating is under review.
NIIT
NIIT is expected to announce its 1QFY2012 results. We expect the company’s revenue to
grow by 9.7% yoy to `305cr. Revenue for the individual learning solution (ILS-IT), school
learning solution (SLS) and corporate learning solution (CLS) segments is expected to grow
by 10%, 15% and 6% yoy to `100cr, `44cr and `146cr, respectively. Revenue from the
new business is expected to grow at a scorching pace of 35% yoy to `15cr. We expect the
company’s EBITDA margin to decline by 632bp yoy to 9.8%, majorly due to an 843bp yoy
decline in the EBITDA margin of the SLS segment. PAT is expected to be at `11.4cr. We
maintain our Buy view on the stock with an SOTP target price of `68.
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