KRChoksey is bearish on Suzlon Energy and has recommended sell rating on the stock with a target of Rs 15 in its November 15, 2012 research report.
"Suzlon Group reported execution of 1,268 MW (vs. estimated 932 MW), however generated Gross profit per MW is Rs 1.2 crore (vs. Rs 1.9 crore, -62%) is below our expectations in Q2FY13. It led the consol sales growth up by 12.4%, YoY. Consol EBITDA fell to negative Rs 108 crore (-123%, YoY) and margins fell by 1,127 bps on account of high raw material cost (+1064 bps, YoY) and high other expenses (+218 bps, YoY). Consol EBIT margins are -4.8% (vs. guidance of 6%-7%). No relief from debt as consol interest cost increased to Rs 418 crore (+16.7%, YoY). SUEL reported consol net loss of Rs 808 crore in Q2FY13. SUEL has submitted corporate debt restructuring (CDR) plan to lenders and seeks a 10 year long term repayment period for debt, including two year moratorium on principal and term-debt interest payments and additional working capital facilities. Management indicated that debt restructuring plan will be finalized in Q4FY13 as discussion with lenders going on."
KRChoksey is bullish on DLF and has recommended accumulate rating on the stock with a target of Rs 229 in its November 15, 2012 research report.
"DLF posted its Q2FY13 results below our expectations with a top-line of Rs2,040cr, a de-growth of 19% y-o-y and 7% q-o-q while EBIDTA income was down by 36% y-o-y, consequently margins also declined sequentially as well as y-o-y basis, primarily due to higher operating cost. Adjusted net profit declined by 68% y-o-y while margins declined 880bps y-o-y on the back of higher interest expenses during the quarter."
KRChoksey is bullish on Patel Engineering Company and has recommended buy rating on the stock with a target of Rs 94 in its November 15, 2012 research report.
"PEL reported standalone Q2FY13 PAT Rs 14.8 crore (-50.7%, YoY) that is in line to expectation of Rs 15 crore primarily driven by higher execution at on going irrigation projects. Revenue grew to Rs 729 crore (+19%, YoY) and EBITDA grew to Rs 137.2 crore (+45%, YoY) and margins fell by 57 bps on YoY on account of increase in construction cost. Interest cost grew to Rs 115.7 crore (+204%, YoY), shows higher debt utilization for working capital."
Motilal Oswal is bullish on United Spirits and has recommended buy rating on the stock with a target of Rs 1843 in its November 12, 2012 research report.
"The UB group has entered into an agreement to sell 27.4% stake (including 10% preferential allotment) in United Spirits (UNSP) to Diageo for INR57.3b. Diageo will also make an open offer to acquire an additional 26% at the same price. If the open offer is fully subscribed, Diageo will eventually own 53.4% stake in UNSP."
Sushil Finance has recommended hold rating on SML Isuzu with a target of Rs 472, in its November 15, 2012 research report.
"SML Isuzu, despite of a 3.2% YoY de-growth in SIL's volumes at 3174 units in Q2FY13, it reported net sales growth of 6% YoY at Rs. 2,613 mn vis-à-vis Rs.2,465 mn in Q2FY12 driven by better product mix (PC:GC 52:48, MCV:LCV 68:32) resulting in improved realization (+9.5% YoY). For H1FY13, the net sales stood at Rs. 5225 mn vis-à-vis Rs. 4838 mn, a growth of 8.0% YoY. During H1FY13, company's sales were affected by sand mining ban in its key operating states (Himachal, Kerala, Goa, Punjab), which according to management, should not last for long time."
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