cmp 161 Target Price Rs205
Value unlocking on the cards, raising Target Price
In the last three months, Madhucon Projects (MPL) has outperformed its
peers and given a return of 83.8%, as against the average return of
27.6% of our infrastructure coverage universe, and vindicated it as
our Top pick in the sector. After taking note of the latest
developments happening on various issues, including a money-raising
exercise, and the outlook on the Power, Coal and Real estate
businesses we are confident that the developments taking place at the
subsidiary level, though their are likly delays in payment from the AP
government, which would stretch the working capital requirements for
the year and would marginally impact the numbers. Against this
backdrop, we have factored in higher valuations for its subsidiary
(Madhucon Infra) – on enhanced visibility – and factored in dilution.
Therefore, our Target price stands at Rs205 , giving a potential
upside of 32%.
buy anantraj(ARIL)
cmp 128
target 148
ARIL follows the model of 'build & lease' as far as commercial real
estate is concerned. It seldom sells its commercial properties
outright. Instead, it prefers to lease them out, and in this way, over
time, creates a sustainable and steady stream of cash flows from all
its commercial properties. The company expects to get a rent yield of
about 10% to 14% on these. Future growth will be fueled by these
strong cash flows. Commercial properties for the company includes
hotels, malls (and other retail spaces), IT Parks, SEZs and other
office spaces.
Also it has not diverted its attention to large scale residential or
township development unlike many other players, which is a capital
intensive model and a big strain on liquidity. The company's cash flow
driven business model as described above is further expected to keep
it in a strong financial position with high liquidity.
A zero debt real estate company!:
- Hide quoted text -
Healthy pipeline of upcoming projects: Following are some of theprojects the company completed during FY09 -
* A mall at Karol Bagh - 82,500 Sq.ft.
* An IT Park at Manesar - 18,00,000 Sq.ft.
* First Phase of Hotel Anant Raj Exotica - 43 Rooms
* First Phase of Hotel Anant Raj Retreat - 55 Rooms
It plans on developing another 3 million sq ft in prime areas over the
next two years by executing its already available land bank.
* 5 IT Parks expected by 2012 having total constructed area of 6.5
million sq.ft.
* 2 Commercial malls expected by 2010 having total constructed
area of 0.83 million sq.ft.
* 6 Hotels expected by 2011 having a land area of 36.29 acres.
* 3 Residential buildings expected by 2011 having a land area of
8.35 acres.
Buy DIC INDIA LTD.
cmp 179
Target Price Rs 240
Company Description:
Incorporated as Coates of India in 1947, DICIL was promoted by Coates
Brothers & Company (known as Coates Brothers) in Kolkata as a wholly
owned subsidiary to manufacture and market printing inks and allied
products. It became a public limited company in 1976. It is now a part
of Dainippon Ink & Chemicals Inc. (DIC), Japan.
The first unit to manufacture printing inks, surface coatings and
allied products came up in 1947 in Calcutta, and other manufacturing
units were established in Chennai (1958), Mumbai (1960), Delhi (1966)
and Noida (1990) in a phased manner to cater to the demands of the
local market. Rohit Industries Pvt Ltd and DIC Coatings are wholly
owned subsidiaries of DIC.
This is a low floating stock company and any interest from
institutional / operators sides the stcok can jump.
MNM
Recommendation: Buy
MARKET PRICE: Rs 1015
TARGET PRICE: Rs 1184
M&M has gone from strength to strength during the quarter. Its market
share in overall tractor sales stands at over 40%. It is also expected
to benefit from the government’s thrust on the rural economy. Tractors
volume growth is seen 6-8% in 2HFY10 and 6-8% CAGR over next 2-3
years.
UNION BANK
Recommendation: Buy
MARKET PRICE: Rs 259
TARGET PRICE: Rs 320
UNION BANK has a balance sheet size of over Rs 1 lakh crore. Earnings
estimates upgraded by 2% for FY10 and by 4% for FY11. The stock trades
at 1.1 times FY11E book value
DECCAN CHRONICLE
Recommendation: Buy
MARKET PRICE: Rs 144
TARGET PRICE: Rs 180
DCHL is a print media focused company based in Hyderabad. DCHL
intends to sell part or its entire stake in its IPL venture, The
Deccan Charger Sporting Venture. The team’s recent win in the IPL2
will enable the company to get better valuation.
.
PHOENIX MILLS
Recommendation: Buy
MARKET PRICE: Rs 172.80
TARGET PRICE: Rs 240
Phoenix mills has emerged as the leader for large scale, mixed format
retailed developments. PML is a low-risk play on the domestic
consumption story, without retail specific risks. The Company has been
in news recently for its tie up with JW MARRIOT. Also the Company is
expanding in the Tier II and III cities.
SHRIRAM TRANSPORT
Recommendation: Buy
MARKET PRICE: Rs 429.35
TARGET PRICE: Rs 495
SHTF : We are surprised to see the high amount of cash on the balance
sheet over last three consecutive quarters which we believe SHTF is
consciously keeping higher cash levels on balance sheet learning
lessons from the liquidity crunch in 3QFY09 .
Plz. do ur analysis before taking any investment decisions as markets
are very volatile .
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