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India Equity Research Reports, IPO and Stock News
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http://www.kotaksecurities.com/pdf/dmb/MorningInsight23052012.pdf
OIL INDIA LIMITED (OINL)
PRICE: RS.443 RECOMMENDATION: BUY
TARGET PRICE: RS.529 FY13E P/E: 6.7X
Oil India Ltd. (OINL) is the second largest government exploration and
production (E&P) company in India with presence across oil and gas value
chain. We initiate coverage on OINL with a BUY rating and price target of
Rs. 529/Share, an upside of 19.5%.
Our positive stance on OINL is premised mainly on: 1) Relatively underexploited
resource base; 2) Quality assets with relatively low finding and
development costs; 3) Resilient production growth; 4) Strong balance sheet
with net cash of around Rs.221/share (49.8% of market cap); 5) Attractive
valuation implying an EV/boe (2P) of US$3.2/bbl; and 6) OINL's potential to
maintain a reserve replacement ratio (RRR) of 1. We believe Oil India will be
able to capitalize on expected increase in domestic energy consumption and
will also benefit with any increase of oil and gas prices.
We value OINL's core business at a target PE multiple of ~7x FY13E earnings.
Further, the cash pile provides downside support and opportunities of
inorganic growth.
VOLTAMP LTD
PRICE: RS.501 RECOMMENDATION: REDUCE
TARGET PRICE: RS.450 FY13E P/E: 12.6X
Voltamp numbers are in line with our expectations. The Transformer
manufacturing sector has been going through a continued phase of margin
pressure and subdued demand conditions. There has been no visible
improvement in the industry scenario since our previous update. Given this,
we maintain our negative stance on the industry and maintain Reduce on
the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/dmb/MorningInsight23052012.pdf
OIL INDIA LIMITED (OINL)
PRICE: RS.443 RECOMMENDATION: BUY
TARGET PRICE: RS.529 FY13E P/E: 6.7X
Oil India Ltd. (OINL) is the second largest government exploration and
production (E&P) company in India with presence across oil and gas value
chain. We initiate coverage on OINL with a BUY rating and price target of
Rs. 529/Share, an upside of 19.5%.
Our positive stance on OINL is premised mainly on: 1) Relatively underexploited
resource base; 2) Quality assets with relatively low finding and
development costs; 3) Resilient production growth; 4) Strong balance sheet
with net cash of around Rs.221/share (49.8% of market cap); 5) Attractive
valuation implying an EV/boe (2P) of US$3.2/bbl; and 6) OINL's potential to
maintain a reserve replacement ratio (RRR) of 1. We believe Oil India will be
able to capitalize on expected increase in domestic energy consumption and
will also benefit with any increase of oil and gas prices.
We value OINL's core business at a target PE multiple of ~7x FY13E earnings.
Further, the cash pile provides downside support and opportunities of
inorganic growth.
VOLTAMP LTD
PRICE: RS.501 RECOMMENDATION: REDUCE
TARGET PRICE: RS.450 FY13E P/E: 12.6X
Voltamp numbers are in line with our expectations. The Transformer
manufacturing sector has been going through a continued phase of margin
pressure and subdued demand conditions. There has been no visible
improvement in the industry scenario since our previous update. Given this,
we maintain our negative stance on the industry and maintain Reduce on
the stock.
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