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Dolat Capital
Syndicate Bank (Buy)
CMP: Rs 91
Target: Rs 122
The bank management's moderate business growth strategy has aided in maintaining CASA share and margin.
Further, it also paved the way to better asset quality in the prevailing turbulent situation. The bank's asset quality further improved with GNPA and NNPA at 2.29 and 0.86 per cent respectively; PCR was at 78.5 per cent providing a buffer in the uncertain times.
Overall, the quarterly result shows all-round improvement with higher CASA deposit share, margin and better asset quality.
We reiterate our ‘Buy' rating on the stock with a price target of Rs 122 at 0.9x adjusted book value (ABV) FY13. At current price, the stock quotes at 0.66x ABV FY13. The stock is available at an attractive dividend yield of 4.8 per cent. The mid-sized bank is one of the best performers in recent times and available at dirt cheap valuation of 0.66x ABV FY13.
PINC Research
HT Media (Buy)
CMP: Rs 125
Target: Rs 166
HT Media registered a top-line of Rs 530 crore better than our expectations, with advertisement revenue witnessing growth of 10 per cent y-o-y to Rs 400 crore. Circulation revenue registered de-growth of -0.8 per cent Q-o-Q with English circulation de-growth of 5 per cent Q-o-Q to Rs 50.3 crore in Q3-FY12.
Raw material costs increased 13 per cent y-o-y mainly due to higher newsprint consumption and rupee depreciation.
OPM declined from 19 per cent in Q3-FY11 to 14.7 per cent in Q3-FY12, primarily due to Rs 10 crore forex loss and Rs 7.5 crore one-off item. We believe, HT Media is uniquely placed to capture growth opportunities across the media platforms — Hindi print, English print, radio and Internet portals.
UltraTech Cement (Accumulate)
CMP: Rs 1,208
Target: Rs 1,340
Considering the lacklustre scenario for cement demand across key sectors such as infrastructure and housing, we have reduced our cement volume estimates for FY12 and FY13 by 4 and 7 per cent respectively. Realisations continue to support margins currently; however, increased energy costs are expected to impact margins in FY13. We have increased FY12 margin estimate by 32 basis points (bps) while lowering FY13E by 65bps. Consequently, while FY12 earnings estimate is revised upwards by 15.6 per cent to Rs 81.8, FY13 estimate is marginally increased to Rs 95.4.
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