Fundamentals: Why Phoenix Mills debt is bound to go down

FP Staff • December 20, 2014, 11:25:48 IST

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The realty firm will benefit from falling interest rates.

Fundamentals: Why Phoenix Mills debt is bound to go down

Here’s a list of stock recommendations by various analysts/ brokerage houses:

Phoenix Mills stock is up 2.2 percent today after international brokerage firm, Credit Suisse initiated an outperform rating on the company with a price target of Rs 218 per share vs its current price of Rs 187 per share, reflecting a growth of 16.5 percent. While CS expects the company’s debt levels to stabilise at the current levels, it will also benefit from falling interest rates. Its average debt cost will reduce as expensive construction finance loans get refinanced with cheaperLease Rent Discount (LRD) loans, where the loan is provided to the lessor based on the discounted value of the rentals and the underlying property value.

Also, near term headwinds in the form of losses during the opening months of the five star hotel Shangri-La have already been priced into the stock. For the year ended March 2013, the company is expected to clock a 6.3 percent jump in net profit on a 35 percent growth in sales.

The company is a retail mall developer with approximately 6.17 million square feet of retail space in eight cities.

Microsec is bullish on Apollo Tyres with a price target of Rs 92 per share vis its current price of Rs 80 per share, reflecting a growth of 14 percent. The correction in rubber prices augurs well for the company as it has provided marginal relief despite the gloom and doom caused by falling value of rupee and sluggish demand. Domestic rubber prices have come down from Rs 240 per kg to around Rs 185 per kg i.e down 23 percent from its peak. Apart from that the company is also planning to set up two new facilities in Europe and Brazil. They are also considering investing in radial capacity which would improve turnover and margin performance.

Edelweiss maintains buy call on Jain Irrigation (JISL). They predict a target price of Rs 110 vis a vis its current price of Rs 88 per share, reflecting a growth rate of 25 percent. The main reason for this could be that they have finally received the RBI approval to launch its Non Banking Finance Corporation (NBFC), which would be followed with aggressive expansion. The main activities of this would be to finance farmers for agri projects, contract farming, small business, setting up solar pumps and other appliances. For the year ending March 2013, sales are expected to grow by 14.4 percent while net profit will rose at a slower pace of 6.4 percent.

Religare recommends a hold on JSW with a target price of Rs 56 whereas the current price is Rs 53.2, a growth rate of 5 percent.

JSW imports 65 percent of its fuel requirement from overseas and hence is likely to benefit from falling coal prices globally. Every 1 percent change in INR dominated coal prices is likely to have a 1.5 percent impact on the Earnings Per Share (EPS) of 2014. They predict a growth rate in revenue by 58.4 percent in 2013 as opposed to a fall of 60.2 percent in the financial year ended 2012. JSW Energy Limited is a power company operating in the generation and transmission space with a total of 3140MW generating capacity in its Vijaynagar, Ratnagiri and Barmer thermal power plants.

Here's a list of stock recommendations by various analysts/ brokerage housesMicrosec is bullish on Apollo Tyres with a price target of Rs 92 per share vis its current price of Rs. 80 per share, reflecting a growth of 14 percent The correction in rubber prices augurs well for the company as it has provided marginal relief despite the gloom and doom caused by falling value of rupee and sluggish demand. Domestic rubber prices have come down from Rs.240/ kg to around Rs 185/kg i.e down 23 percent from its peak. Apart from that the company is also planning to set up two new facilities in Europe and Brazil. They are also considering investing in radial capacity which would improve turnover and margin performance.

Edelweiss maintains buy call on Jain Irrigation (JISL). They predict a target price of Rs 110 vis a vis its current price of Rs. 88 per share, reflecting a growth rate of 25 percent. The main reason for this could be that they have finally received the RBI approval to launch its Non Banking Finance Corporation (NBFC), which would be followed with aggressive expansion. The main activities of this would be to finance farmers for agri projects, contract farming, small business, setting up solar pumps and other appliances. For the year ending March 2013, sales are expected to grow by 14.4% while net profit is at a slower pace of 6.4 percent.

Religare recommends a hold on JSW with a target price of Rs 56 whereas the current price is Rs 53.2, a growth rate of 5 percent. It expects the company's year ended March 2013 earnings to rise by a whopping 59 percent on lower fuel cost and ramp-up in Barmer. The coal prices have been corrected 20 percent in INR terms. JSW imports 65 percent of its fuel requirement from overseas and hence is likely to benefit from falling coal prices globally. Every 1 percent change in INR dominated coal prices is likely to have a 1.5 percent impact on the Earnings Per Share (EPS) of 2014. They predict a growth rate in revenue by 58.4 percent in 2013 as opposed to a fall of 60.2 percent in the financial year ended 2012. JSW Energy Limited is a power company operating in the generation and tranmission space with a total of 3140MW generating capacity in its Vijaynagar, Ratnagiri and Barmer thermal power plants.

Daiwa Capital Markets reaffirms its buy call on Coal India. The forecast a target price of Rs. 400 showing a growth of 13. 79%

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_Here’s a list of stock recommendations by various analysts/ brokerage houses_Microsec is bullish on Apollo Tyres with a price target of Rs 92 per share vis its current price of Rs. 80 per share, reflecting a growth of 14 percent The correction in rubber prices augurs well for the company as it has provided marginal relief despite the gloom and doom caused by falling value of rupee and sluggish demand. Domestic rubber prices have come down from Rs.240/ kg to around Rs 185/kg i.e down 23 percent from its peak. Apart from that the company is also planning to set up two new facilities in Europe and Brazil. They are also considering investing in radial capacity which would improve turnover and margin performance.

_Here’s a list of stock recommendations by various analysts/ brokerage houses_Microsec is bullish on Apollo Tyres with a price target of Rs 92 per share vis its current price of Rs. 80 per share, reflecting a growth of 14 percent The correction in rubber prices augurs well for the company as it has provided marginal relief despite the gloom and doom caused by falling value of rupee and sluggish demand. Domestic rubber prices have come down from Rs.240/ kg to around Rs 185/kg i.e down 23 percent from its peak. Apart from that the company is also planning to set up two new facilities in Europe and Brazil. They are also considering investing in radial capacity which would improve turnover and margin performance.

Religare recommends a hold on JSW with a target price of Rs 56 whereas the current price is Rs 53.2, a growth rate of 5 percent. It expects the company’s year ended March 2013 earnings to rise by a whopping 59 percent on lower fuel cost and ramp-up in Barmer. The coal prices have been corrected 20 percent in INR terms. JSW imports 65 percent of its fuel requirement from overseas and hence is likely to benefit from falling coal prices globally. Every 1 percent change in INR dominated coal prices is likely to have a 1.5 percent impact on the Earnings Per Share (EPS) of 2014. They predict a growth rate in revenue by 58.4 percent in 2013 as opposed to a fall of 60.2 percent in the financial year ended 2012. JSW Energy Limited is a power company operating in the generation and tranmission space with a total of 3140MW generating capacity in its Vijaynagar, Ratnagiri and Barmer thermal power plants.

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