PINC Research has maintained its buy rating on Housing Development and Infrastructure with an 18-month price target of Rs 1212 in its May 23, 2008 research report. "Housing Development & Infrastructure Ltd.’s (HDIL) Q4FY08 results were above expectations. Net sales doubled QoQ to Rs 9.8 billion and OPM expanded 2,175bps to 88.6% on back of lower cost of land in SRS projects. HDIL posted a net profit of Rs 7.1 billion (up 162%) owing to strong operating performance."
"We have valued HDIL’s core business NAV at Rs 714 per share (pre-bonus). The airport slum project is expected to add another Rs 498 per share, boosting its total NAV to Rs 1212 per share. Considering HDIL’s strong presence in MMR (Mumbai Metropolitan Region) and its expertise in high margin slum redevelopment business, we believe HDIL should trade at par with its NAV. Thus, we maintain our ‘BUY’ recommendation with an 18-month price target of Rs 1212," says PINC's research report.
"We have valued HDIL’s core business NAV at Rs 714 per share (pre-bonus). The airport slum project is expected to add another Rs 498 per share, boosting its total NAV to Rs 1212 per share. Considering HDIL’s strong presence in MMR (Mumbai Metropolitan Region) and its expertise in high margin slum redevelopment business, we believe HDIL should trade at par with its NAV. Thus, we maintain our ‘BUY’ recommendation with an 18-month price target of Rs 1212," says PINC's research report.
PINC Research has mainatained its buy rating on Havells India with a 12-month price target of Rs 650 in its May 26, 2008 research report. "Havells India Ltd’s (Havells) consolidated Q4FY08 results were below expectations with Sylvania reporting a contraction in margins and flat net profits QoQ of Rs 78 million. While consolidated net sales rose by 2.6% QoQ to Rs 13.7 billion, OPM at 5.9% was lower by 150bps. Net profits rose by 5.4% to Rs 469 million. The growth was driven by lighting and electrical consumer durables segments."
"The CMP of Rs 470 discounts FY10E EPS of Rs 52.5 by 8.9x and the stock trades at an EV/EBIDTA of 6.7x FY10 estimates. We believe valuations do not factor in the improvement in Sylvania’s performance, which can have a significant leverage benefit in margins. With commencement of outsourcing to Havells, a significant ramp up in the same should accrue over the next 2-3 years. Thus, we maintain our ‘BUY’ recommendation with a 12-month price target of Rs 650," says PINC's research report.
