Earnings Review: Analysts vote for Bajaj, Dish TV

Here are some views from brokers/analyst on specific companies :

Edelweiss remains bullish on Bajaj Auto with a target price of Rs 1,830 vis- a-vis the current price of Rs 1,575 showing an increase of 16 percent, and this is despite the fact that the company reported a muted performance at the bottom line. The report cites various reasons for its optimism such as new launches and steps taken to revive export market demand which should boost sales.

Management indicated that while a weak June quarter jeopardised chances of meeting its 2012-13 sales guidance of five million units, performance of new launches in both two and three wheelers is encouraging. The brokerage firm expects the company net profit to rise by 29 for the year ended March 2014.

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Bajaj Auto is the second largest two-wheeler manufacturer in India with a domestic market share of 28 percent. It offers products in all motorcycle segments-Platina (entry), Discover (executive) and Pulsar (premium).

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Similiarly Edelweiss has a ‘buy’ rating on Dish TV with a target price of Rs 80 as against the current price of Rs. 70 registering a growth of 14 percent. Post its earnings, its stock shot up by 4 percent as it reported lesser losses for the June quarter against the preceeding quarter. Also at the operating profit it reported a 38.7 percent jump helped by healthy growth in subscribers numbers and price hikes.

Further the report says that while Dish TV is expected to benefit during the digitisation process due to its huge brand and limited ability of smaller MSOs to switch to the digital platform, it is positive on the company only from a long term perspective due to concerns about its rupee depreciation and balance sheet issues. In addition the price hike in July 2012 is sure to augur well for the company.

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Kotak Securities has an accumulate rating on NIIT Technologies Limited with a target price of Rs 314 vis-a-vis the current price of Rs 292 showing a 7.5 percent growth rate. NIIT Technologies rose 1.3 percent after it posted a higher than expected 24.5 percent quarter on quarter and 40 percent year-on-year growth in net profit to Rs 57.5 crore for the June 2012 quarter. The company has not seen any major competition from larger peers and the realisations are largely stable. Margins fell on a quarter on quarter basis despite the rupee depreciation, due to the salary increments. The company is chasing a few large deals worth more than $25million each which should help boost its earnings. In the last one year, the stock has outperformed the Sensex as it has risen by 45 percent.