Prabhudas Lilladher is bullish on State Bank of India (SBI) and has recommended accumulate rating on the stock with a target of Rs 2500 in its February 14, 2013 research report.
"SBI reported lower than expected PAT at Rs33.9bn due to miss on NIMs and higher NPA provisions. Operating metrics continue to remain weak with margins coming off from 2Q levels and core fees continuing to contract. Slippages at 3.4% was also a negative surprise and restructuring was limited due to non-recognition of Suzlon in 3Q. We believe operating metrics will continue to disappoint for most PSUs including SBI and restrict ROA improvement even though we expect credit costs to come off. Valuations remain reasonable at 1.1x FY14 P/B and hence we retain ACCUMULATE with PT of Rs2500."
Prabhudas Lilladher is bullish on Coal India (CIL) and has recommended accumulate rating on the stock with a target of Rs 400 in its February 13, 2013 research report.
"CIL reported Q3FY13 earnings above our expectation. Stronger-thanexpected realisations in e-auction and washed coal compensated higher costs. We reiterate our .Accumulate. rating with TP of Rs400 (6.5x EV/EBITDA FY15E), supported by better outlook on volumes, attractive valuations and better positioning for price increase, driven by strong operational performance in FY13."
Motilal Oswal is bullish on DLF and has recommended buy rating on the stock with a target price of Rs 300 in its February 18, 2013 research report.
"DLF, revenue declined 36% YoY to INR13.1b (v/s our estimate of INR20.6b). EBITDA de-grew 89% YoY to INR0.87b (v/s our estimate of INR8.4b) and EBITDA margin declined from 37% in 2QFY13 to 6.6%. The subdued revenue booking and margin contraction can be attributed to the various provisions that DLF has made in 3QFY13 to the tune of INR5.62b . Cost adjustment has led to slowdown/ reversal of POCM (percentage of completion method) revenue across projects, in turn resulting in overall revenue/margin contraction.
Prabhudas Lilladher is bullish on Bharat Petroleum Corporation (BPCL) and has recommended accumulate rating on the stock with a target of Rs 441 in its February 14, 2013 research report.
"BPCL's EBITDA and PAT during the quarter stood at Rs22.8bn and Rs16.4bn, down 38.1 percent YoY and 47.5 percent YoY, respectively, with higher government support in Q3FY12. However, given the variability of government support, comparison of quarterly numbers has limited sense. Interest expenditure increased 11.3 percent QoQ on account of higher working capital borrowings, while other income was down 7.1 percent QoQ. We expect government to provide higher support during Q4FY13 to keep company profitable (9MFY13 loss of Rs21.5bn)."
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