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20 Stocks On Investment Radar in 2012
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ong the highest on the street, led by expectation of better performance of the core business and sustainability of Henkel's profitable performance. We assign 16x to FY13E earnings and add Rs12/share NPV on tax saving of Rs1.2bn @12% discount rate to derive the TP of Rs212.
MAHINDRA & MAHINDRA : Our FY12 and FY13 earnings forecast are Rs45.7 and Rs52.9 respectively. Our FY13 earning estimate is in line with the consensus estimate. We value M&M at Rs882 using SOTP methodology, discounting the standalone business at 13x FY13E earnings.
NESTLE INDIA : Our estimates and target price are lower than the consensus, led by the expectation of pressure on EBITDA margin and argument of narrowing down of the Nestle's valuation premium. We assign P/E of 30x on the next 12-months earnings to derive a TP of Rs3,618.
NIIT TECH : Our top-line estimate for FY12 is marginally higher by 1.6% than consensus while lag the consensus for FY13 by 1.4%. Our EBITDA margin estimates for FY12 are marginally lower than consensus by 26bps and in line with consensus for FY13. Our EPS estimates for FY12 & FY13 lag the consensus by 0.5% and 4.2% respectively.
PHOENIX MILLS : Our EPS estimates for FY12 and FY13 are Rs10.8 and Rs11.9 respectively. Our FY12 earnings estimate is 21% higher than consensus estimate of Rs8.9. We have a 'BUY' recommendation on the stock with a target price of Rs265 after assigning 15% discount to FY12E gross NAV.
POWER GRID : Our FY12 & FY13 PAT estimates are in line with consensus. We value PGCIL on FCFE basis to arrive at a target price of Rs120 (terminal growth rate 3% and 13% Ke).
STERLITE : JPMorgan has reiterated OVERWEIGHT on Sterlite with a target of Rs 165. It believes any potential increase in its stake in Balco would be positive as it will lay the groundwork for potential restructuring of the aluminium and power operations.
TECPRO SYSTEMS : We expect EPS of Rs31.0 and Rs37.4 in FY12 and FY13, respectively, almost in line with consensus forecasts. We expect 9% growth in order inflow in FY12, whereas some analysts forecast de-growth of ~30-35%. However, the management has guided for ~30% growth in order inflow in FY12. We maintain a BUY recommendation on the stock with a target price of Rs375 (10x FY13E).
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. |
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