 "Earnings review: What brokers say post Q1 results")
Here are some views / opinions from analyst post companies June 2012 quarter earnings :
•HSBC is overweight on Larsen & Toubro with a target price of Rs 1,651 per share against its current market price of Rs 1,365 per share, reflecting a growth of 21 percent. While the company’s net profit rose 16 percent for the June quarter, net sales rose by 26 percent. HSBC expects the robust performance to continue as it expects the company to record a robust 16 percent consolidated Compounded Annual Growth Rate (CAGR) during financial year 2012-15, driven primarily by an improvement in the business environment and increased contribution from its subsidies.
Strategic steps taken by the company over the past three to five years to diversify into structural growth segments like power equipment and manufacturing, nuclear power, defence and asset ownership augurs well for the company and this is expected to yield results.
•Kotak is bullish on Tata Global Beverages with a target price of Rs 130 per share against its current market price of Rs 120 per share, reflecting gains of eight percent. It has cited three reason. First Tetley has shown growth and market share improvement inspite of the black tea market declining by 3.6 percent in the UK. Second is the potential of Nourish Co and Starbucks and third, the benefit from the correction in commodity prices. It expects the company to report a 12.9 percent growth in revenues for the year ended March 2013 while profit is expected to rise at a faster pace of 19.1 percent.
•While HSBC maintains its neutral view on Cairn India, it has lowered its target price to Rs 362 per share citing lower value from exploration upside. However, this still translates into a 12 percent upside at its current market price of Rs 323 per share. For the June 2012 quarter, the company reported a sharp jump in net profit to Rs 3,200 mostly on forex gains and lower tax. Also concerns about changes in average oil prices and a change in the rupee-dollar exchange rate from Rs 47 to Rs 55 are some of the parameters that the company has taken into account while lowering its target price.
•Edelweiss maintains a buy call on Asian Paints despite the June 2012 quarter numbers coming below their expectations. It has a target price of Rs 4,000 against the current price of Rs 3,590, registering a growth of 11.42 percent. Despite the key negatives, Edelweiss remains positive from the long term view due to scale benefits and strong brand equity. The domestic organized paint segment is growing ahead of unorganized segment with Asian Paints being the dominant player. Impact of input pressures, currency and price hike need to be monitored closely.
Asian Paints is the largest paints company in India and figures among the top 10 players in the world. The company has 30 manufacturing plants in 22 countries, serving consumers in 65 countries globally.