Stock ideas for May 20, 2013

Amara Raja Batteries

Angel Broking's research report on Amara Raja Batteries (AMRJ)

"For 4QFY2013, Amara Raja Batteries (AMRJ) posted lower-than-expected results on the bottom-line front despite a strong growth in the top-line. The performance was impacted due to operating margin pressures (due to increase in lead prices and higher share of traded goods) and also on account of higher depreciation and tax expense. AMRJ has announced an ambitious capital expenditure plan of Rs 760cr to ease the capacity constraints across the product segments that it is facing currently.

Mahindra Satyam

Angel Broking's research report on Mahindra Satyam (Satyam)

" Mahindra Satyam (Satyam) reported in-line net profit for 4QFY2013 while disappointed on the operational front. Volume growth was decent at 2.0 percent qoq. The company added 60 new clients during the quarter. Satyam has declared dividend of 30 percent (Rs 0.6 per share) for the first time post 2009 crisis as the turnaround for Satyam is symbolically complete and the company now seems to be in good shape.

United Spirits

VK Sharma, Head Private Broking & Wealth Management, HDFC Securities advises to holdUnited Spirits for long term.

VK Sharma of HDFC Securities told CNBC-TV18, "If one were to look at United Spirits for the next two years or so, one can definitely look at a much higher levels. One just needs to remember that this was an excellent company with good products but run in a very bad manner. The cash resources of this company were being used for the group.

Bajaj Finance

Bajaj Finance (BFL) reported net profit of Rs 163.8 cr (+51.1 percent YoY) in Q4FY13 driven by strong growth across SME and consumer business. Overall disbursement growth remained healthy at 21.3 percent YoY for FY13.

However, net interest income declined sequentially and was marginally below estimates owing to the higher composition of the lower yielding SME product. The overall share of the SME segment increased to 48 percent in Q4FY13 as compared to 46 percent in Q3FY13. Cost to income ratio continued to witness improvement driven by operating leverage. The asset quality remained fairly stable with gross NPA at 1.09 percent and net NPA at 0.19 percent.

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