1QFY2012 Result Preview HDFC Bank , Ashok Leyland, Cadila, Crompton Greaves:: Angel Broking,

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1QFY2012 Result Preview
HDFC Bank
HDFC Bank is scheduled to announce its 1QFY2012 results. We expect the bank to report
healthy NII growth of 25.9% yoy to `3,023cr, in spite of the expected NIM moderation.
Non-interest income is expected to register growth of 23.1% yoy, leading to operating
income growth of 25.1% yoy. Due to relatively faster rise in operating expenses, preprovision
profit is expected to grow by relatively lower 22.1% yoy. However, provisions are
expected to decline marginally by 1.8% yoy, leading to healthy net profit growth of 32.2%
yoy to `1,073cr. At the CMP, we believe the stock is trading at fair valuations of 3.4x
FY2013E P/ABV. We maintain our Neutral recommendation on the stock.
Cadila Healthcare
For 1QFY2012, Cadila Healthcare (Cadila) is expected to post sales and adjusted net
profit of `1,281cr and `179cr, registering yoy growth of 21.4% and 35.6%, respectively.
Top-line growth would be mainly driven by domestic sales and exports. On the operating
front, margins would come at 20.5%, almost similar to the 20.7% level in 1QFY2011. At
the CMP, the stock trades at 25.1x FY2012E and 18.4xFY2013E earnings, respectively. We
recommend Accumulate with a target price of `1,053.
Crompton Greaves
Crompton Greaves is scheduled to announce its 1QFY2012 results. The company’s
revenue is expected to increase by 8% yoy to `2,486cr. On the operating front, we expect
the margin to compress by 42bp yoy to 12.5%. Net profit is expected to decline by 4.3%
yoy to `183cr. The stock is currently trading at 15.9x FY2012E and 13x FY2013E earnings.
We will revisit our estimates post the conference call. Currently, we maintain our Buy rating
on the stock with a target price of `300.
Ashok Leyland
Ashok Leyland (ALL) is slated to announce its 1QFY2012 results. We expect the company’s
top line to grow modestly by 7% yoy, driven by growth in average net realisation as
volumes during the quarter witnessed a 10% decline. On the operating front, EBITDA
margin is expected to post a decline of 53bp yoy to 9.5%, owing to higher raw-material
cost and lower operating leverage. As a result, the bottom line is expected to decline by
17% yoy to `102cr. The stock rating is under review.