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India Equity Research Reports, IPO and Stock News
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http://www.kotaksecurities.com/pdf/dmb/MorningInsight19042012.pdf
INFOTECH ENTERPRISES LTD (IEL)
PRICE: RS.167 RECOMMENDATION: BUY
TARGET PRICE: RS.183 FY13E P/E: 8.7X
Infotech's results were marginally ahead of expectations. The fall in EBIDTA
was lower than expected, while revenues matched our estimates. The
average realisations were marginally higher QoQ in the ENGG business. The
management has indicated that, the order booking is robust, which should
support revenue growth in FY13. However, we believe that, the overall
uncertainties in the macro environment may restrict significant
improvement in revenue growth rates. We tweak our earnings estimates for
FY13. FY13E earnings now stand at Rs.19.2 per share (Rs.17.6 earlier). The
improvement is largely on the back of expectations of higher EBIDTA
margins and higher share of profits from associates. We tweak our PT to
Rs.183 (v/s Rs.163), based on FY13 estimates, in line with the higher
earnings estimates. At our target price, FY13 estimates will be discounted
by about 10x. We believe this discount to larger peers is justified due to the
lower margins. We are also concerned about the relatively high proportion
of project-based revenues (in N&CE) and the overall macro uncertainty. We
maintain BUY, purely based on valuations and continue to prefer the larger
peers. Expected cash of Rs.45 per share by FY13 end, may provide cushion to
the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/dmb/MorningInsight19042012.pdf
INFOTECH ENTERPRISES LTD (IEL)
PRICE: RS.167 RECOMMENDATION: BUY
TARGET PRICE: RS.183 FY13E P/E: 8.7X
Infotech's results were marginally ahead of expectations. The fall in EBIDTA
was lower than expected, while revenues matched our estimates. The
average realisations were marginally higher QoQ in the ENGG business. The
management has indicated that, the order booking is robust, which should
support revenue growth in FY13. However, we believe that, the overall
uncertainties in the macro environment may restrict significant
improvement in revenue growth rates. We tweak our earnings estimates for
FY13. FY13E earnings now stand at Rs.19.2 per share (Rs.17.6 earlier). The
improvement is largely on the back of expectations of higher EBIDTA
margins and higher share of profits from associates. We tweak our PT to
Rs.183 (v/s Rs.163), based on FY13 estimates, in line with the higher
earnings estimates. At our target price, FY13 estimates will be discounted
by about 10x. We believe this discount to larger peers is justified due to the
lower margins. We are also concerned about the relatively high proportion
of project-based revenues (in N&CE) and the overall macro uncertainty. We
maintain BUY, purely based on valuations and continue to prefer the larger
peers. Expected cash of Rs.45 per share by FY13 end, may provide cushion to
the stock.
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