Market should open positive and may touch and cross 18 K in morning session because of strong global markets opening. But remains very volatile and if effected from political reasons than market can corrects from higher levels.
Nifty Support 5160 5100 Resistance 5260 5290
Sensex Support 17500, 17300 Resistance 18000
Buys for Intraday:
RCOM (645) Target 660+ SL 640
Bharti Airtel (993) Buy above 1000 for Target 1030 SL 990
BSEL Infra (64) Target 68-70 SL 62
Kalyani Steel (478) Target 500 SL 474
Tinplate (56) Target 60 SL 54
Advanta India (1065) Target 1090+ SL 1058
Tata Power (944) Target 965 SL 938
NIIT Ltd (131) Target 135+ SL 129
IFCI (85) Target 88-90 SL 84
Astral Poly (130) Target 138-140 SL 128
Others: Reliance Industries, Ispat Industries (32), GTC Industries (280), Prajay Eng (306), KS Oils (72.5), TTML (40.5).
Good Luck
Monday, October 8, 2007
Friday, October 5, 2007
Markets Today
The markets ended the week on a flat note with a negative bias after seeing a strong rally during the week. Sensex couldn't touch the 18k mark and is at a shouting distance of 18,000 mark. But on weekly basis Sensex saw good gains of over 2.5%.
Most of the BSE sector indices closed lower, even the broader markets were lacklustre.
Select heavies were like L&T, BHEL, Reliance and Bharti Airtel were supporting the markets at the lower levels. Buying was seen in select capital goods, telecom and oil & gas stocks.Selling pressure is seen in interest rate senstives like auto, bank and realty stocks. Even FMCG and IT stocks are trading at lower levels.
Reliance hit Rs 2,500 mark and Bharti Airtel hit Rs 1000 mark.
On the macroeconomic front, inflation came in higher at 3.42% versus 3.23%.
Power Grid got listed at Rs 85 versus issue price of Rs 52/share, debuting with market cap of Rs 39,000 crore and closed at around Rs 100 levels.
Sensex was down 3.78 points or 0.02% at 17773.36, and the Nifty down 22.80 points or 0.44% at 5185.85.
About 1071 shares have advanced, 1900 shares declined, and 69 shares are unchanged.
Top gainers on the Sensex were Larsen & BHEL up 6%, ABB up over 3.5%, Bharti up 4% and Reliance Comm up 2%.
Top losers on the Sensex were NTPC, Tata Motors, ITC, Hindalco, Wipro and TCS.
The BSE Midcap Index ended at 7,485.51 down 1.2%.
The BSE Smallcap Index ended at 9,101.87 down 0.44%.
The BSE Bankex was down 2.5% at 9,177.32. Union Bank, IOB, Kotak Mahindra, Allahabad Bank, Bank of Baroda moved downwards.
The BSE Capital Goods Index was up 3% at 15,725.25. L&T, Reliance Infra, Kirloskar Bros, Greaves Cotton, Jyoti Structure closed higher
The BSE Auto Index closed at 5,356.83 down 1%. Ashok Leyland, Hind Motors, Bharat Forge, Tata Motors, TVS Motor closed higher.
The BSE Metal Index closed at 14,122.36 down 2%. JSW Steel, Hindalco, Tata Steel, JindalStainless closed lower.
The BSE FMCG Index closed at 2,107.02 down 2%. Marico, Bata India, ITC, United Spirits, United Brewerie closed lower
BSE Oil and Gas Index closed up 1% at 10,109.80. Reliance, IOC, BPCL, HPCL ended in red.
The BSE IT Index was down 0.6% at 4,740.27. Satyam, HCL Tech, Infosys, Patni Computer, Wipro, TCS, Financial Tech closed higher.
The NSE cash turnover was at Rs 20212.79 crore and the NSE F&O turnover was at Rs 64188.48 crore. The BSE cash turnover was Rs 7756.15 crore. Total market wide turnover was at Rs 92157.42 crore.
Most of the BSE sector indices closed lower, even the broader markets were lacklustre.
Select heavies were like L&T, BHEL, Reliance and Bharti Airtel were supporting the markets at the lower levels. Buying was seen in select capital goods, telecom and oil & gas stocks.Selling pressure is seen in interest rate senstives like auto, bank and realty stocks. Even FMCG and IT stocks are trading at lower levels.
Reliance hit Rs 2,500 mark and Bharti Airtel hit Rs 1000 mark.
On the macroeconomic front, inflation came in higher at 3.42% versus 3.23%.
Power Grid got listed at Rs 85 versus issue price of Rs 52/share, debuting with market cap of Rs 39,000 crore and closed at around Rs 100 levels.
Sensex was down 3.78 points or 0.02% at 17773.36, and the Nifty down 22.80 points or 0.44% at 5185.85.
About 1071 shares have advanced, 1900 shares declined, and 69 shares are unchanged.
Top gainers on the Sensex were Larsen & BHEL up 6%, ABB up over 3.5%, Bharti up 4% and Reliance Comm up 2%.
Top losers on the Sensex were NTPC, Tata Motors, ITC, Hindalco, Wipro and TCS.
The BSE Midcap Index ended at 7,485.51 down 1.2%.
The BSE Smallcap Index ended at 9,101.87 down 0.44%.
The BSE Bankex was down 2.5% at 9,177.32. Union Bank, IOB, Kotak Mahindra, Allahabad Bank, Bank of Baroda moved downwards.
The BSE Capital Goods Index was up 3% at 15,725.25. L&T, Reliance Infra, Kirloskar Bros, Greaves Cotton, Jyoti Structure closed higher
The BSE Auto Index closed at 5,356.83 down 1%. Ashok Leyland, Hind Motors, Bharat Forge, Tata Motors, TVS Motor closed higher.
The BSE Metal Index closed at 14,122.36 down 2%. JSW Steel, Hindalco, Tata Steel, JindalStainless closed lower.
The BSE FMCG Index closed at 2,107.02 down 2%. Marico, Bata India, ITC, United Spirits, United Brewerie closed lower
BSE Oil and Gas Index closed up 1% at 10,109.80. Reliance, IOC, BPCL, HPCL ended in red.
The BSE IT Index was down 0.6% at 4,740.27. Satyam, HCL Tech, Infosys, Patni Computer, Wipro, TCS, Financial Tech closed higher.
The NSE cash turnover was at Rs 20212.79 crore and the NSE F&O turnover was at Rs 64188.48 crore. The BSE cash turnover was Rs 7756.15 crore. Total market wide turnover was at Rs 92157.42 crore.
Source:moneycontrol.com
Intraday Calls for 5th October
Market should open positive and may touch 18K in today's trade.
Nifty Support 5160 Resistance 5260, 5290
Sensex Support 17500, 17300 Resistance 18000
Buys for Intraday:
Power Grid (New Listing) It can list at 80-85 and Can go for 100-120
3I Infotech (152) Target 155-158 SL 150
TV Today (152) Target 158-160 SL 150
Alstom Projects (872) Target 895-900 SL 865
UNITECH (338) Target 355-360 SL 334
RCOM (638) Target 648-660 SL 632
GIPCL (95) Target 100+ SL 92
NTPC (227) Target 235 SL 225
HDIL (707) Target 725-735 SL 700
AMD Metaplast (49) Target 52-55 SL 47
Others: Reliance Ind, REL, RPL, KPIT, Hexaware, India Infoline, Paramount Com, Cipla.
Good Luck
Nifty Support 5160 Resistance 5260, 5290
Sensex Support 17500, 17300 Resistance 18000
Buys for Intraday:
Power Grid (New Listing) It can list at 80-85 and Can go for 100-120
3I Infotech (152) Target 155-158 SL 150
TV Today (152) Target 158-160 SL 150
Alstom Projects (872) Target 895-900 SL 865
UNITECH (338) Target 355-360 SL 334
RCOM (638) Target 648-660 SL 632
GIPCL (95) Target 100+ SL 92
NTPC (227) Target 235 SL 225
HDIL (707) Target 725-735 SL 700
AMD Metaplast (49) Target 52-55 SL 47
Others: Reliance Ind, REL, RPL, KPIT, Hexaware, India Infoline, Paramount Com, Cipla.
Good Luck
Thursday, October 4, 2007
Intraday Calls for 04th October
Market may open flat to nagetive but remain very volatile like yesterday and can touch 18k very soon.
Nifty Support 5160 and Resistance 5260
Sensex Support 17300 and Resistance 18000
Buys for intraday (Buy at decline):
Torrent Power (102) Target 105-108 SL 100
Triveni Eng (109) Target 115 SL 107
Renuka Sug (742) Target 755 SL 735
Lupin (609) Target 620-625 SL 605
Cipla (185) Target 190+ SL 182
RCOM (643) Target 660 SL 639 (Short Term Target 775 if cross 660)
GTL Infra (40) Target 42-44 SL 39
DLF (892) Target 825 SL 888
IVRCL (441) Target 450-455 SL 436
ITC (187) Target 195 SL 185
Others: Reliance (2400), Welspun Gujarat(300), Kulkarni Power(177), Everonn System(665), IDFC(155), PFC(207), Gallent Metal (18.40).
Good Luck
Nifty Support 5160 and Resistance 5260
Sensex Support 17300 and Resistance 18000
Buys for intraday (Buy at decline):
Torrent Power (102) Target 105-108 SL 100
Triveni Eng (109) Target 115 SL 107
Renuka Sug (742) Target 755 SL 735
Lupin (609) Target 620-625 SL 605
Cipla (185) Target 190+ SL 182
RCOM (643) Target 660 SL 639 (Short Term Target 775 if cross 660)
GTL Infra (40) Target 42-44 SL 39
DLF (892) Target 825 SL 888
IVRCL (441) Target 450-455 SL 436
ITC (187) Target 195 SL 185
Others: Reliance (2400), Welspun Gujarat(300), Kulkarni Power(177), Everonn System(665), IDFC(155), PFC(207), Gallent Metal (18.40).
Good Luck
Wednesday, October 3, 2007
Markets Today
It was a eventful day for Indian markets as opened with bang but slipped in red taking the Sensex sub 17,300 levels but bounced back inching towards the 18,000 levels. Sensex graph was typically V shaped, closing near the high point of the day.
It was a historic day in rems of volume also with over Rs 130,000 crore. The cues from Asia were mixed and even Europe opened flat.
Asia ended mixed, Hang Seng is down over 1600 points from the day's high. Hang Seng was down over 2% as there have been talks of FIIs reducing their holdings in Hong Kong-listed Chinese firms.
Realty, IT, power, capital goods and oil & gas were among the top gainers. Selling pressure was seen in select pharma consumer durables and cement stocks. Broader markets underperformed the benchmark indices.
Top gainers on the Sensex were DLF, Infosys, HDFC, ICICI, Tata Power, Sterlite Ind, Suzlon Eergy, NTPC, Reliance Comm, Reliance Energy and Reliance.
Cipla, Ranbaxy, Ambuja Cements, SBI, Tata Steel, GAIL, MTNL were among the top losers.
Suzlon has bagged 150 MW order from DLF and the stock is up over 3%.
Sensex was up 518.42 points or 2.99% at 17847.04, and the Nifty up 141.85 points or 2.80% at 5210.80.
About 1221 shares have advanced, 1762 shares declined, and 52 shares are unchanged.
The BSE Small Cap Index closed at 9,108.70 down 0.8%.
The BSE Midcap Index ended at 7,540.54 up 0.2%.
The BSE FMCG Index closed at 2,157.31 up 0.3%. Marico, Tata Tea, Dabur India, Colgate closed in green.
The BSE Metal Index closed at 14,180.50 up 2%. Hindalco, Hind Zinc, Sesa Goa, Sterlite Ind, Jindal Steel were among the gainers.
The BSE Health Care Index was down 0.5% at 3,817.82. Orchid Chemical, Glenmark, Cipla, Sun Pharma closed higher.
The BSE Capital Goods Index was up 2.6% at 15,064.27. Greaves Cotton, BEML, Jyoti Structure, Reliance Infra, BHEL ended higher.
The BSE Auto Index closed at 5,399.60 up 1.6%. Tata Motors, Maruti Udyog, Bajaj Auto, Mah and Mah, Bharat Forge were among the gainers
The BSE IT Index closed at 4,790.90 up 4%. Infosys, TCS, I-Flex Solution, Tech Mahindra, Mphasis, HCL Tech ended higher.
The BSE Bankex was up 2% at 9,575.59. Karnataka Bank, Kotak Mahindra, ICICI Bank, Federal Bank Axis Bank, SBI, HDFC Bank closed higher.
The BSE Oil and Gas Index closed at 10,008.53 up 3.4%. Reliance, BPCL, IOC, ONGC closed in green
The NSE cash turnover was at Rs 24819.65 crore and the NSE F&O turnover was at Rs 105619 crore. The BSE cash turnover was Rs 10023.92 crore. Total market wide turnover was at Rs 140462.57 crore.
It was a historic day in rems of volume also with over Rs 130,000 crore. The cues from Asia were mixed and even Europe opened flat.
Asia ended mixed, Hang Seng is down over 1600 points from the day's high. Hang Seng was down over 2% as there have been talks of FIIs reducing their holdings in Hong Kong-listed Chinese firms.
Realty, IT, power, capital goods and oil & gas were among the top gainers. Selling pressure was seen in select pharma consumer durables and cement stocks. Broader markets underperformed the benchmark indices.
Top gainers on the Sensex were DLF, Infosys, HDFC, ICICI, Tata Power, Sterlite Ind, Suzlon Eergy, NTPC, Reliance Comm, Reliance Energy and Reliance.
Cipla, Ranbaxy, Ambuja Cements, SBI, Tata Steel, GAIL, MTNL were among the top losers.
Suzlon has bagged 150 MW order from DLF and the stock is up over 3%.
Sensex was up 518.42 points or 2.99% at 17847.04, and the Nifty up 141.85 points or 2.80% at 5210.80.
About 1221 shares have advanced, 1762 shares declined, and 52 shares are unchanged.
The BSE Small Cap Index closed at 9,108.70 down 0.8%.
The BSE Midcap Index ended at 7,540.54 up 0.2%.
The BSE FMCG Index closed at 2,157.31 up 0.3%. Marico, Tata Tea, Dabur India, Colgate closed in green.
The BSE Metal Index closed at 14,180.50 up 2%. Hindalco, Hind Zinc, Sesa Goa, Sterlite Ind, Jindal Steel were among the gainers.
The BSE Health Care Index was down 0.5% at 3,817.82. Orchid Chemical, Glenmark, Cipla, Sun Pharma closed higher.
The BSE Capital Goods Index was up 2.6% at 15,064.27. Greaves Cotton, BEML, Jyoti Structure, Reliance Infra, BHEL ended higher.
The BSE Auto Index closed at 5,399.60 up 1.6%. Tata Motors, Maruti Udyog, Bajaj Auto, Mah and Mah, Bharat Forge were among the gainers
The BSE IT Index closed at 4,790.90 up 4%. Infosys, TCS, I-Flex Solution, Tech Mahindra, Mphasis, HCL Tech ended higher.
The BSE Bankex was up 2% at 9,575.59. Karnataka Bank, Kotak Mahindra, ICICI Bank, Federal Bank Axis Bank, SBI, HDFC Bank closed higher.
The BSE Oil and Gas Index closed at 10,008.53 up 3.4%. Reliance, BPCL, IOC, ONGC closed in green
The NSE cash turnover was at Rs 24819.65 crore and the NSE F&O turnover was at Rs 105619 crore. The BSE cash turnover was Rs 10023.92 crore. Total market wide turnover was at Rs 140462.57 crore.
Intraday Calls for 3rd October
Market can open with a gap up but remain very volatile whole day. A strong rally expected.
Sensex Support 17200, 17040 and Resistance 17500
Nifty Support 5040, 5000 and Resistance 5090, 5120
Buys for Intraday:
RCOM (612) Target 630 SL 608
Tata Power (910) Target 925-935 SL 905
GMR Infra (179) Target 185
Renuka Sugar (730) Target 740-745 SL 725
NTPC (206) Target 212-215 SL 203
Aptech (407) Target 415-420 SL 404
Sel Manufacturing (118) Target 125 SL 115
GTL Infra (40.50) Target 43-45 SL 39
Divis Lab (1340) Target 1375 SL 1330
Binani Zinc (270) Target 285 SL 265
REL (1350) Target 1375-1390 SL 1340
Others: Agro Dutch, Surya Pharam, Usha Martin, Spentex Ltd., Mount Shivalik,
Good Luck
Sensex Support 17200, 17040 and Resistance 17500
Nifty Support 5040, 5000 and Resistance 5090, 5120
Buys for Intraday:
RCOM (612) Target 630 SL 608
Tata Power (910) Target 925-935 SL 905
GMR Infra (179) Target 185
Renuka Sugar (730) Target 740-745 SL 725
NTPC (206) Target 212-215 SL 203
Aptech (407) Target 415-420 SL 404
Sel Manufacturing (118) Target 125 SL 115
GTL Infra (40.50) Target 43-45 SL 39
Divis Lab (1340) Target 1375 SL 1330
Binani Zinc (270) Target 285 SL 265
REL (1350) Target 1375-1390 SL 1340
Others: Agro Dutch, Surya Pharam, Usha Martin, Spentex Ltd., Mount Shivalik,
Good Luck
Tuesday, October 2, 2007
KPIT Cummins Target Rs. 178
KPIT Cummins Infosystems Ltd.
(Rs 120, FY09E - EPS Rs 10.9, P/E 11x, Target price: Rs. 178)
(Rs 120, FY09E - EPS Rs 10.9, P/E 11x, Target price: Rs. 178)
KPIT Cummins is the first Indian Company to receive Jaspar membership
KPIT Cummins Infosystems Ltd (KPIT), one of the premium members of AUTOSAR (Automotive Open System Architecture), has joined Jaspar (Japan Automotive Software Platform Architecture). Jaspar is a consortium of automotive manufacturers and suppliers working together to develop and establish a standard Japan Automotive Platform Architecture where as AUTOSAR is a partnership between these manufacturers and suppliers to develop and establish a de-facto open industry standard for automotive electrical/electronic architectures. KPIT is the first and the only Indian company which has become part of the Japan-based consortium. KPIT had recently began its partnership with Renesas for one of the largest outsourcing deals in Japan, in the area of semiconductors.
Jaspar:
Jaspar’s objective is to promote automotive software technology and to cut development costs by encouraging Japanese companies to collaboratively develop non-competitive technologies such as automotive LAN (Local Area Network) enabling technology, middleware and software platforms. Jaspar addresses the escalating need for efficient cars and the increasingly stringent legislations for car safety in Japan. As the density of in-vehicle electrical integration and networked systems increases, there is a growing need to develop non-competitive technology on a common platform, at a reduced cost. Car safety requires complex electronic components, which need to collaborate in harmony for safer and more reliable ride. Jaspar connects auto OEMs and suppliers to understand common problems faced by the industry and provide solution by combined efforts. The
consortium carries out activities concerning software and networks for electronic vehicle control systems including survey, research, technological development, specification development and activities related to intellectual properties.
Jaspar is responsible for defining uniform, interchangeable high-speed bus architecture for the Japanese car industry and aims to contribute technical support to international standardization of communication in the areas of auto & electronic software and contribute to the development of global standards, on the whole.
Advantages to KPIT through Jaspar membership:
Having received the membership, KPIT Cummins is able to use Jaspar specifications to develop tools in compliance with Jaspar standards for the Japanese automotive market. AUTOSAR standards would be modified by Jaspar to meet Japan car makers needs/domestic needs.
Jaspar membership enables access to technology development requirements of participating OEMs as well as preferential access to the outcome of the joint development and most importantly reduces the software development cost. KPIT is going to be benifitted getting access to these requirements.
KPIT’s position will further strengthen in Japan as it can enhance its contribution to the world of automotive electronics in Japan by deeper understanding of local market and existing customers. Over the years, KPIT Cummins has established a leadership position and domain expertise in automotive & semiconductor solutions, partnering with some of the major European, North American & Japanese OEMs and Tier-1s.
Business Outlook and Valuation:
KPIT Cummins has been able to build its presence both organically and inorganically in last few quarters. Growth visibility of the company continues to be strong with recent partnerships and inorganic initiatives coupled with strong ramp up in both Star and Non Star customers.
KPIT has demonstrated its ability to grow on the back of its strong focus on the automotive and semiconductor verticals. The Japanese market is strong in both these verticals. KPIT currently gets about 12% of its revenues from rest of the world (primarily Japan) and expects this to touch to about 20% till 2010. We believe that KPIT’s membership with Jaspar is an excellent platform where the company can both gain and contribute knowledge and expertise in the focused area of Automotive Electronics in the Japanese market. At the same time, KPIT has been able to reduce its dependence on Cummins, from 44% a year ago to 39% today.
However, on the margin front, concern still remains on account of appreciating rupee scenario. About 60% of the company’s revenues come from US making it susceptible to unfavorable rupee movements. KPIT has tried to create geographical diversification, and Europe now accounts for almost 30 per cent of its turnover, which has doubtless helped manage financial results in the face of dollar depreciation.
We expect KPIT’s revenue and net profit to grow at a CAGR of 28% and 25% respectively over FY07A-09E.
Year Ended FY07A FY08E FY09E
Net Sales (Rs Mn) 4637.0 5943.0 7689.5
EBITDA (Rs Mn) 707.8 965.1 1280.4
OPM% 15.3 16.2 16.7
Net Profit (Rs Mn) 504.8 654.1 829.9
EPS (Rs) 6.6 8.6 10.9
P/E (x) @ Rs 120 18.2 14.0 11.0
KPIT Cummins Infosystems Ltd (KPIT), one of the premium members of AUTOSAR (Automotive Open System Architecture), has joined Jaspar (Japan Automotive Software Platform Architecture). Jaspar is a consortium of automotive manufacturers and suppliers working together to develop and establish a standard Japan Automotive Platform Architecture where as AUTOSAR is a partnership between these manufacturers and suppliers to develop and establish a de-facto open industry standard for automotive electrical/electronic architectures. KPIT is the first and the only Indian company which has become part of the Japan-based consortium. KPIT had recently began its partnership with Renesas for one of the largest outsourcing deals in Japan, in the area of semiconductors.
Jaspar:
Jaspar’s objective is to promote automotive software technology and to cut development costs by encouraging Japanese companies to collaboratively develop non-competitive technologies such as automotive LAN (Local Area Network) enabling technology, middleware and software platforms. Jaspar addresses the escalating need for efficient cars and the increasingly stringent legislations for car safety in Japan. As the density of in-vehicle electrical integration and networked systems increases, there is a growing need to develop non-competitive technology on a common platform, at a reduced cost. Car safety requires complex electronic components, which need to collaborate in harmony for safer and more reliable ride. Jaspar connects auto OEMs and suppliers to understand common problems faced by the industry and provide solution by combined efforts. The
consortium carries out activities concerning software and networks for electronic vehicle control systems including survey, research, technological development, specification development and activities related to intellectual properties.
Jaspar is responsible for defining uniform, interchangeable high-speed bus architecture for the Japanese car industry and aims to contribute technical support to international standardization of communication in the areas of auto & electronic software and contribute to the development of global standards, on the whole.
Advantages to KPIT through Jaspar membership:
Having received the membership, KPIT Cummins is able to use Jaspar specifications to develop tools in compliance with Jaspar standards for the Japanese automotive market. AUTOSAR standards would be modified by Jaspar to meet Japan car makers needs/domestic needs.
Jaspar membership enables access to technology development requirements of participating OEMs as well as preferential access to the outcome of the joint development and most importantly reduces the software development cost. KPIT is going to be benifitted getting access to these requirements.
KPIT’s position will further strengthen in Japan as it can enhance its contribution to the world of automotive electronics in Japan by deeper understanding of local market and existing customers. Over the years, KPIT Cummins has established a leadership position and domain expertise in automotive & semiconductor solutions, partnering with some of the major European, North American & Japanese OEMs and Tier-1s.
Business Outlook and Valuation:
KPIT Cummins has been able to build its presence both organically and inorganically in last few quarters. Growth visibility of the company continues to be strong with recent partnerships and inorganic initiatives coupled with strong ramp up in both Star and Non Star customers.
KPIT has demonstrated its ability to grow on the back of its strong focus on the automotive and semiconductor verticals. The Japanese market is strong in both these verticals. KPIT currently gets about 12% of its revenues from rest of the world (primarily Japan) and expects this to touch to about 20% till 2010. We believe that KPIT’s membership with Jaspar is an excellent platform where the company can both gain and contribute knowledge and expertise in the focused area of Automotive Electronics in the Japanese market. At the same time, KPIT has been able to reduce its dependence on Cummins, from 44% a year ago to 39% today.
However, on the margin front, concern still remains on account of appreciating rupee scenario. About 60% of the company’s revenues come from US making it susceptible to unfavorable rupee movements. KPIT has tried to create geographical diversification, and Europe now accounts for almost 30 per cent of its turnover, which has doubtless helped manage financial results in the face of dollar depreciation.
We expect KPIT’s revenue and net profit to grow at a CAGR of 28% and 25% respectively over FY07A-09E.
Year Ended FY07A FY08E FY09E
Net Sales (Rs Mn) 4637.0 5943.0 7689.5
EBITDA (Rs Mn) 707.8 965.1 1280.4
OPM% 15.3 16.2 16.7
Net Profit (Rs Mn) 504.8 654.1 829.9
EPS (Rs) 6.6 8.6 10.9
P/E (x) @ Rs 120 18.2 14.0 11.0
KPIT stock trades at a P/E of 14x FY08E and 11x FY09E. We continue to maintain a BUY on KPIT with our previous target price of Rs 178. At our target price the stock trades 20.7x and 16.3x EPS for FY08E & FY09E respectively (based on fully diluted equity of Rs 152.5 mn). We continue to maintain a BUY on KPIT with our previous target price of Rs 178.
Source:emkayshare.com
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