Stock picks for November 19, 2012

Tata Motors: Quotes, News

BSE 971.4021.05 (-2.17%)

NSE 971.3521.45 (-2.21%)

Tata Motors:

FinQuest Securities is bullish on Tata Motors and has recommended buy rating on the stock with a target of Rs370 in its November 09, 2012 research report.

"Tata Motors Limited (TML) came out with Q2FY13 results which were below ours as well as consensus estimates. PAT came in at Rs21.1 bn, down 9% Y-o-Y, 21% sequentially, 30% below ours and 11% below consensus estimates. One of the main reasons for this earning miss was the drag from the India business whose EBITDA at Rs7.3 bn was down 21% Y-o-Y as EBITDA margins contracted to 5.2% from 6.7% reported last year. However the continued resilience in JLR margins saved the day for TML. JLR's EBITDA at GBP 486 mn was up 16% Y-o-Y and came in at 14.8% of total revenue. EBITDA margins should have contracted Q-o-Q in Q2FY13 due to adverse product mix (on the back of a major product upgrade, of the flagship Range Rover) but actually it expanded by 30 bps to 14.8%."

Simplex Infra:

Angel Broking is bullish on Simplex Infrastructures and has recommended buy rating on the stock with a target of Rs251 in its November 15, 2012 research report.

GMR Infra:

Emkay Global Finance Services has recommended hold rating on GMR Infrastructure with a target of Rs 21, in its November 16, 2012 research report.

"GMR Infrastructure, Revenues at Rs 19.9bn +12%yoy, airport vertical witnessed +26%yoy at Rs 11bn, EPC segment witnessed +29% at Rs3.7bn. Inter-segmental transaction more than doubled to Rs 3.4bn impacting overall growth. Although PLF for the power projects stood at 27% v/s 59% in Q2FY12, additional contribution from the mining segment led to 20% yoy growth in Power revenues at Rs 6.3bn. Lower passenger growth in aviation vertical delaying turnaround prospects for Delhi Airport. Although the near term profitability in Aero segment stands impacted owing to slow traffic growth, however truing up the tariffs of Delhi Airport will negate the impact of slow down in the longer term. Adjusted EBITDA at Rs4.7bn, a decline of 11%yoy, Power EBITDA stood at Rs 202mn sharp decline of 78%yoy, EPC EBITDA at Rs 143 mn witnessed 18% yoy contraction. Although Airport segment witnessed Rs 3.6bn EBITDA with a robust 68% yoy growth, the performance of the aviation segment could have been much better off had the momentum in passenger growth continued during the quarter."

Jaiprakash Associates:

Ventura has recommended hold rating on Jaiprakash Associates , in its November 16, 2012 research report.

"Jaiprakash Associates Ltd reported 3.5% yoy increase in revenues to Rs 3005 crore as against Rs 2902 crore in Q2FY12. EBITDA for the quarter stood at Rs 813.6 crore, up by 3% yoy, driven by strong construction margins. The net profit stood at Rs 128 crore, down 48.5% yoy led by lower other income, higher interest and depreciation costs and higher tax rate (35.6% in Q2FY13 v/s 28.6% in Q2FY12). Cement division's revenues registered a growth of 4% yoy to Rs.1371.9 crore. The EBIT margins for the cement division stood at 10%, down 500 bps qoq. The cement production for the quarter stood at 3.21 MT. Cement realization was Rs 4287/ tonne while EBITDA per tonne was Rs 785 for the quarter."

PNB:

Sell Punjab National Bank (PNB), says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Markets work in context, so we have had two big down days or two large range days. Today is expected to be choppy in any case. So any trading ideas we talk about must be taken in the context that markets are likely to remain choppy. In that choppy condition, you may or may not take a trade but within that overall environment, PNB continues to be a sell. We have been bearish on some of these banks for a long time now and that bearishness continues. If you see a small rally then look to short it."

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