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Hitachi Home & Life Solutions
Hitachi Home & Life Solutions (HHLS) reported lower-than-expected numbers for
2QFY2012. The company’s revenue declined by 2.1% yoy from `131cr in
2QFY2011 to `128cr (8.3% lower compared to our estimates of `139cr). The
company’s EBITDA margin came in at 1.6%, down 705bp yoy, due to higher
employee and other expenses. The company reported a higher forex loss on ECB
during the quarter, which led to loss of `7cr as compared to profit of `5cr in
2QFY2011.
We expect the company’s sales volume to increase at a CAGR of 14.7% over
FY2011-13E, which would lead profits to increase to `41cr in FY2013E from `29cr
in FY2011. At the CMP of `165, the stock is trading at attractive valuations with PE
of 9.3x FY2013E earnings. We maintain our Buy rating on the stock with a target
price of `212, based on a target PE of 12x for FY2013E.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hitachi Home & Life Solutions
Hitachi Home & Life Solutions (HHLS) reported lower-than-expected numbers for
2QFY2012. The company’s revenue declined by 2.1% yoy from `131cr in
2QFY2011 to `128cr (8.3% lower compared to our estimates of `139cr). The
company’s EBITDA margin came in at 1.6%, down 705bp yoy, due to higher
employee and other expenses. The company reported a higher forex loss on ECB
during the quarter, which led to loss of `7cr as compared to profit of `5cr in
2QFY2011.
We expect the company’s sales volume to increase at a CAGR of 14.7% over
FY2011-13E, which would lead profits to increase to `41cr in FY2013E from `29cr
in FY2011. At the CMP of `165, the stock is trading at attractive valuations with PE
of 9.3x FY2013E earnings. We maintain our Buy rating on the stock with a target
price of `212, based on a target PE of 12x for FY2013E.
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