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TCS
TCS is slated to announce its 2QFY2012 results. We expect the company to post revenue
of US$2,554mn, registering 5.9% qoq growth, led by robust volume growth of 6.3% qoq.
In rupee terms, revenue is expected to grow by 8.1% qoq to `11,670cr. EBITDA margin is
expected to expand by 36bp qoq to 28.43% as wage hike (given in 1QFY2011) impact will
be partially absorbed but will be partly offset by the promotion cycle. PAT is expected to
come in at `2,472cr. TCS remains our preferred pick amongst tier-I IT companies.
We recommend Neutral on the stock with a target price of `1,179.
HDFC
HDFC is scheduled to announce its 2QFY2012 results. We expect the bank to report
healthy NII growth of 16.9% yoy to `1,192cr. Non-interest income is expected to register
21.5% growth yoy, leading to operating income growth of 17.8% yoy to 1,476cr.
Operating expenses are expected to grow by 17.5% yoy to `122cr. Pre-provision profit is
expected to grow by 17.8% to `1,353cr. However, provisions are expected to increase
substantially by three times to `57cr, leading to net profit growth of 15.4% yoy to `932cr.
At the CMP, HDFC’s core business (after adjusting `225/share towards value of the
subsidiaries) is trading at 4.15x FY2013E ABV of `106.4 (including subsidiaries, the stock
is trading at 4.2x FY2013E ABV of `158.6). We maintain our Neutral view on the stock.
South Indian Bank
South Indian Bank is scheduled to announce its 2QFY2012 results. The bank is expected to
post moderate growth of 6.9% yoy in its NII; even on a sequential basis, NII growth is
expected to be muted at 2.4% due to moderate NIM compression. Non-interest income is
expected to increase by 9.2% yoy, increasing overall operating income growth to 6.9% yoy.
A considerable expected rise in provisioning expenses is likely to drag net profit growth to
7.7% yoy to `83cr. At the CMP, the stock is trading at 1.2x FY2013E ABV. We maintain our
Neutral recommendation on the stock.
MindTree
MindTree is slated to announce its 2QFY2012 results. We expect the company to post
revenue of US$97.4mn, up 5.2% qoq, majorly led by volume growth. In rupee terms,
revenue is expected to come in at `445cr, up 7.7% qoq. EBITDA margin is expected to
expand by 67bp qoq to 11.8%, as wage hikes for 74% of the employees got over in
1QFY2012; the rest 25% will flow in 2QFY2012, which will be partially absorbed by rupee
depreciation and volume growth. PAT is expected to come in at `30cr. We maintain our
Accumulate rating on the stock with a target price of `414.
Persistent Systems
Persistent Systems is slated to announce its 2QFY2012 results. We expect the company to
post revenue of US$52.7mn, up 5.5% qoq, majorly led by volume growth. In rupee terms,
revenue is expected to come in at `241cr, up 7.7% qoq. EBITDA margin is expected to
decline by 252bp qoq to 15.4% due to wage hikes given from July 1, 2011. The company
is expected to report PAT of `26.1cr. We recommend Accumulate on the stock with a
target price of `357.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Preview
TCS
TCS is slated to announce its 2QFY2012 results. We expect the company to post revenue
of US$2,554mn, registering 5.9% qoq growth, led by robust volume growth of 6.3% qoq.
In rupee terms, revenue is expected to grow by 8.1% qoq to `11,670cr. EBITDA margin is
expected to expand by 36bp qoq to 28.43% as wage hike (given in 1QFY2011) impact will
be partially absorbed but will be partly offset by the promotion cycle. PAT is expected to
come in at `2,472cr. TCS remains our preferred pick amongst tier-I IT companies.
We recommend Neutral on the stock with a target price of `1,179.
HDFC
HDFC is scheduled to announce its 2QFY2012 results. We expect the bank to report
healthy NII growth of 16.9% yoy to `1,192cr. Non-interest income is expected to register
21.5% growth yoy, leading to operating income growth of 17.8% yoy to 1,476cr.
Operating expenses are expected to grow by 17.5% yoy to `122cr. Pre-provision profit is
expected to grow by 17.8% to `1,353cr. However, provisions are expected to increase
substantially by three times to `57cr, leading to net profit growth of 15.4% yoy to `932cr.
At the CMP, HDFC’s core business (after adjusting `225/share towards value of the
subsidiaries) is trading at 4.15x FY2013E ABV of `106.4 (including subsidiaries, the stock
is trading at 4.2x FY2013E ABV of `158.6). We maintain our Neutral view on the stock.
South Indian Bank
South Indian Bank is scheduled to announce its 2QFY2012 results. The bank is expected to
post moderate growth of 6.9% yoy in its NII; even on a sequential basis, NII growth is
expected to be muted at 2.4% due to moderate NIM compression. Non-interest income is
expected to increase by 9.2% yoy, increasing overall operating income growth to 6.9% yoy.
A considerable expected rise in provisioning expenses is likely to drag net profit growth to
7.7% yoy to `83cr. At the CMP, the stock is trading at 1.2x FY2013E ABV. We maintain our
Neutral recommendation on the stock.
MindTree
MindTree is slated to announce its 2QFY2012 results. We expect the company to post
revenue of US$97.4mn, up 5.2% qoq, majorly led by volume growth. In rupee terms,
revenue is expected to come in at `445cr, up 7.7% qoq. EBITDA margin is expected to
expand by 67bp qoq to 11.8%, as wage hikes for 74% of the employees got over in
1QFY2012; the rest 25% will flow in 2QFY2012, which will be partially absorbed by rupee
depreciation and volume growth. PAT is expected to come in at `30cr. We maintain our
Accumulate rating on the stock with a target price of `414.
Persistent Systems
Persistent Systems is slated to announce its 2QFY2012 results. We expect the company to
post revenue of US$52.7mn, up 5.5% qoq, majorly led by volume growth. In rupee terms,
revenue is expected to come in at `241cr, up 7.7% qoq. EBITDA margin is expected to
decline by 252bp qoq to 15.4% due to wage hikes given from July 1, 2011. The company
is expected to report PAT of `26.1cr. We recommend Accumulate on the stock with a
target price of `357.
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