Prabhudas Lilladher has maintained its buy rating on Koutons Retail India with a price target of Rs 1140 in its May 26, 2008 research report. "Company increased number of stores from 687 in FY07 to 1,175 in FY08. It is looking to expand the store count to 1,800 in FY09 and 2,300 in FY10. This would entail expansion of space from 0.88m sq ft in FY08 to 1.45m sq ft in FY09 and 2m sq ft in FY10. Company plans to enter Middle East by tying up MBOs to place Koutons range in FY09. It would be opening 50 exclusive stores of Koutons there in FY10."
"Factoring in 6% equity dilution in FY10, we estimate EPS of Rs 35.8 in FY09E and Rs 57.0 in FY10E. At CMP of Rs 740, the stock is trading at 20.7x FY09E & 13.0x FY10E. We maintain BUY rating on the stock with price target of Rs 1,140 (20x FY10E and PEG of 0.3)," says Lilladher's research report.
IndiaInfoline has maintained its buy rating on ITC with a target price of Rs 258 in its May 26, 2008 research report. "ITC recorded 14.7% yoy growth in revenues at Rs 139.5 billion slightly below our expectation of Rs 140 billion during FY08 led by 7.7% yoy growth at Rs 138 billion in the core cigarettes segment. We believe ITC to have recorded a flat growth (or a decline of 1%) in cigarette volumes during FY08. The non-cigarette businesses recorded 18.9% yoy growth at Rs 98.4 billion driven by strong 48.6% yoy growth in FMCG [led by branded packaged foods - 57%, biscuits – 53%, confectionary – 40%, lifestyle retailing – domestic 26%, exports 17%], 10.5% yoy in agri, 12.6% yoy in paper and packaging and 11.6% yoy rise in hotels segment. The leaf tobacco exports recorded a new high in tobacco exports for the third consecutive year growing by 21% yoy in value terms and 27% yoy in volume terms (at 62mn kgs)."
"ITC has managed to sustain the extent of losses in the FMCG - others segment with a revenue growth of 50% and we expect this segment to turn profitable by FY10. With the entry into the personal care category, we expect ITC to become a tough competitor for HUL and GCPL, given its strong distribution network in the rural (6,400+ e-choupals and 21 Choupal Saagars) and urban markets. Also, strong cash flows from cigarette business can be invested in advertising heavily to build the personal care portfolio in the initial stage. At the current market price of Rs 205, the stock is trading at 18.2x FY10E EPS of Rs 11.7 per share. We maintain BUY on the stock with a one-year price target of Rs 258, an upside of 20.9%," says IndiaInfoline's research report.
"Factoring in 6% equity dilution in FY10, we estimate EPS of Rs 35.8 in FY09E and Rs 57.0 in FY10E. At CMP of Rs 740, the stock is trading at 20.7x FY09E & 13.0x FY10E. We maintain BUY rating on the stock with price target of Rs 1,140 (20x FY10E and PEG of 0.3)," says Lilladher's research report.
IndiaInfoline has maintained its buy rating on ITC with a target price of Rs 258 in its May 26, 2008 research report. "ITC recorded 14.7% yoy growth in revenues at Rs 139.5 billion slightly below our expectation of Rs 140 billion during FY08 led by 7.7% yoy growth at Rs 138 billion in the core cigarettes segment. We believe ITC to have recorded a flat growth (or a decline of 1%) in cigarette volumes during FY08. The non-cigarette businesses recorded 18.9% yoy growth at Rs 98.4 billion driven by strong 48.6% yoy growth in FMCG [led by branded packaged foods - 57%, biscuits – 53%, confectionary – 40%, lifestyle retailing – domestic 26%, exports 17%], 10.5% yoy in agri, 12.6% yoy in paper and packaging and 11.6% yoy rise in hotels segment. The leaf tobacco exports recorded a new high in tobacco exports for the third consecutive year growing by 21% yoy in value terms and 27% yoy in volume terms (at 62mn kgs)."
"ITC has managed to sustain the extent of losses in the FMCG - others segment with a revenue growth of 50% and we expect this segment to turn profitable by FY10. With the entry into the personal care category, we expect ITC to become a tough competitor for HUL and GCPL, given its strong distribution network in the rural (6,400+ e-choupals and 21 Choupal Saagars) and urban markets. Also, strong cash flows from cigarette business can be invested in advertising heavily to build the personal care portfolio in the initial stage. At the current market price of Rs 205, the stock is trading at 18.2x FY10E EPS of Rs 11.7 per share. We maintain BUY on the stock with a one-year price target of Rs 258, an upside of 20.9%," says IndiaInfoline's research report.
