Recommendation: Buy
CMP = Rs 884
Price target: Rs 950
- At the current market price of Rs884 the bank's stock is quoting at 7.5x its FY2007E stand-alone earnings per share (EPS) and 1.2x its consolidated book value.
- I maintain Buy recommendation on SBI with a price target of Rs950.
Surya Pharmaceuticals
Recommendation: BuyCMP = Rs 147
Price target: Rs 205
- Surya Pharma's net sales were up 31% year on year (yoy) in Q3FY2006 to Rs60.2 crore as against Rs45.9 crore in Q3FY2005 on the back of good contract manufacturing orders.
- At the current market price of Rs147 the stock is trading at 5.8x its FY2007 earnings estimate. I maintain Buy recommendation on Surya Pharma with a price target of Rs205.
Television Eighteen India
Recommendation: BuyCMP = Rs 411
Price target: Rs 485
- Television Eighteen India (TV18) reported a strong 55% year-on-year and 23.7% quarter-on-quarter growth in its consolidated revenues for Q3FY2006 to Rs38.1 crore backed by the strong performance of the news and Internet & content operations.
- I believe that TV18's business model has become more robust with the inclusion of the channels Awaaz and CNN-IBN in the bouquet. Looking at the company's robust business model, the stock is attractively quoting at 14.6x its FY2007E EPS and 8.6x its FY2007E EBIDTA.
- I reiterate Buy recommendation on the stock with price target of Rs485.
TIL
Recommendation: Book ProfitCMP: Rs 213
- TIL's revenues grew at a low rate of 11.2% quarter on quarter (qoq) to Rs115.3 crore. The revenue growth was low despite the fact that the company does more business in the second half of the year.
- TIL's profit after tax (PAT) grew by only 71.5% yoy to Rs2.1 crore, even after considering the other income of Rs0.8 crore. The Q3FY2006 results of TIL are below expectations.
- This stock has achieved my earlier price target of Rs 224 and I recommend booking profit.
UltraTech Cement
Recommendation: BuyCMP = Rs 507
Price target: Rs 620
- UTCL's net sales for the quarter grew by 5% year on year (yoy) to Rs783 crore (after adjusting the freight and trading sales impact). The growth was driven by a 12.8% increase in cement realisation.
- Cement volumes were down 6.9% owing to floods in the southern region, which restricted production in the southern plants. The tax outgo of Rs19.2 crore (at a tax rate of 44.6%) restricted the net profit to Rs24 crore.
- Hence, I recommend Buy option on this scrip.
