Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JK Lakshmi Cement
For 1QFY2012, JK Lakshmi Cement registered 21.1% yoy growth in its net sales to `392cr
due to a 10% increase in dispatches and an ~11% improvement in realisations. The
company’s operating profit rose by 41% yoy to `79cr. However, the company faced
margin pressures due to higher power and fuel and freight costs. On the bottom-line front,
the company’s net profit rose by 35.3% yoy to `23cr. We maintain our Buy rating on the
stock with a target price of `57.
Automotive Axles – 3QSY2011
Automotive Axles (AAL) reported robust 39.6% yoy (down 1.5% qoq) growth in its net sales
to `273.9cr, driven primarily by 34.9% and 197.3% yoy growth in domestic and export
sales, respectively. On the operating front, EBITDA margin registered a 150bp yoy (flat
qoq) contraction to 12.5%. Margin contraction can be attributed to a 68% yoy increase in
other expenditure. Noticeably, AAL was able to mitigate raw-material cost pressures, which
on a yoy basis stood flat at 70% of sales. Margin contraction was further arrested due to
the 60bp fall in employee expenses. As a result, net profit increased strongly by 21.9% yoy
(down 3.6% qoq) to `17.7cr. The stock rating is currently under review.
Electrosteel Steels
Electrosteel Steels (ESL), an associate of Electrosteel Castings (34.4% stake), reported its
1QFY2012 results. The company reported net sales of `23.1cr, while it reported operating
income of `(74.9)cr in 1QFY2012. ESL’s interest income stood at `93.4cr. The company
reported net loss of `168.3cr in 1QFY2012. ESL had commenced operation of pig iron
during FY2011. However, it was subsequently shut down for synchronisation with other
facilities at the plant. We believe ESL’s financials would turn around once it receives coking
coal and iron ore from Electrosteel Castings at a substantial discount to market prices.
Meanwhile, we maintain our Buy rating on Electrosteel Castings with a target price of `35.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JK Lakshmi Cement
For 1QFY2012, JK Lakshmi Cement registered 21.1% yoy growth in its net sales to `392cr
due to a 10% increase in dispatches and an ~11% improvement in realisations. The
company’s operating profit rose by 41% yoy to `79cr. However, the company faced
margin pressures due to higher power and fuel and freight costs. On the bottom-line front,
the company’s net profit rose by 35.3% yoy to `23cr. We maintain our Buy rating on the
stock with a target price of `57.
Automotive Axles – 3QSY2011
Automotive Axles (AAL) reported robust 39.6% yoy (down 1.5% qoq) growth in its net sales
to `273.9cr, driven primarily by 34.9% and 197.3% yoy growth in domestic and export
sales, respectively. On the operating front, EBITDA margin registered a 150bp yoy (flat
qoq) contraction to 12.5%. Margin contraction can be attributed to a 68% yoy increase in
other expenditure. Noticeably, AAL was able to mitigate raw-material cost pressures, which
on a yoy basis stood flat at 70% of sales. Margin contraction was further arrested due to
the 60bp fall in employee expenses. As a result, net profit increased strongly by 21.9% yoy
(down 3.6% qoq) to `17.7cr. The stock rating is currently under review.
Electrosteel Steels
Electrosteel Steels (ESL), an associate of Electrosteel Castings (34.4% stake), reported its
1QFY2012 results. The company reported net sales of `23.1cr, while it reported operating
income of `(74.9)cr in 1QFY2012. ESL’s interest income stood at `93.4cr. The company
reported net loss of `168.3cr in 1QFY2012. ESL had commenced operation of pig iron
during FY2011. However, it was subsequently shut down for synchronisation with other
facilities at the plant. We believe ESL’s financials would turn around once it receives coking
coal and iron ore from Electrosteel Castings at a substantial discount to market prices.
Meanwhile, we maintain our Buy rating on Electrosteel Castings with a target price of `35.
No comments:
Post a Comment