Stock picks for October 29, 2012

Yes Bank:

Aditya Birla Money is bullish on Yes Bank and has recommended accumulate rating on the stock with a target of Rs 460 in its October 26, 2012 research report.

"Yes Bank, growth in profit was mainly driven by strong net income growth. Net interest income grew by 35.9% YoY (11.0% QoQ) while growth in non-interest income stood at 29.3% YoY (-3.9% QoQ). The growth in NII was mainly driven by robust growth in customer assets (including credit substitutes) at 32.5% YoY (17.1% QoQ) coupled with sequentially expanding NIMs at 2.9% vs 2.8% QoQ. Non-interest income growth was driven by strong growth across all fee income streams. Retain banking fees registered a growth of 113.9% YoY (backed by bank's expanding retail franchise). Besides this transaction banking & Financial advisory registered a strong 30.7% YoY & 22.3% YoY growth respectively. Going forward, the management expects the contribution of non interest income to net income to stay in the range of 35%-40%."

Petronet LNG:

FinQuest Securities is bullish on Petronet LNG and has recommended buy rating on the stock with a target of Rs 195 in its October 26, 2012 research report.

"Petronet LNG, in the quarter, sales increased 40.7% Y-o-Y and 7.4% sequentially to Rs. 75.5 bn while PAT increased 20.9% Y-o-Y and 16.2% sequentially to Rs. 3.15 bn, ahead of our estimates of Rs. 2.48 bn, despite a lower than expected re-gasification volume on account of higher than expected trading margins. In the quarter, the company regassified 135 TBTU of LNG, flat on Y-o-Y basis, however, increased 6.3% sequentially, as against our expectations of 137.2 TBTU. In the quarter, PLNG capacity utilization increased to ~106% as against ~100% in Q1FY13 and ~107% in Q2FY12."

GIC Housing Fin:

AC Choksi is bullish on GIC Housing Finance and has recommended buy rating on the stock with a target of Rs 160 in its October 26, 2012 research report.

"GIC Housing Finance Ltd is a subsidiary of General Insurance Corporation of India. The company is engaged in the housing finance activity. They operate in the retail loan segment. They provide loans to individuals and to persons/ entities engaged in construction of houses/ flats for residential purposes."

ICICI Bank:

Emkay Global Financial Services has recommended hold rating on ICICI Bank with a target of Rs 1100, in its October 26, 2012 research report.

"ICICI Bank Q2FY13 NII at Rs33.7bn (+35% yoy) was marginally ahead of our / street est. and was aided by stable margins at 3% (stable qoq) and 18% yoy (2.5% qoq) growth in loan portfolio. Dividend income from life insurance subsidiary of Rs750mn and treasury gains came at the rescue of yet another quarter of muted fee income growth. With adequate cost controls (cost/income ratio at 41%) and stable provisioning (~74bps annualized), net profit at Rs19.6bn (+30% yoy) was inline with our estimates. Asset quality remains stable with GNPA at Rs100bn (+2% qoq). Fresh slippages at Rs7.2bn (1.0% annualized) after adjusting for one large account in media space of Rs5bn are in tandem with historical run-rate of Rs7-8bn per quarter. Mgmt has provided for upto 85% on that media account and does not foresee any major pain in H2FY13. However, with ~200bps qoq decline in PCR to 78.7%, NNPA at Rs21.3bn was up 12% qoq. Bank restructured loans of Rs1.4bn in Q2 vs Rs3.5bn in Q1. Restructured pool stands declined to Rs41.5bn (1.5% of loans) with outstanding pipeline of Rs5bn."

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