Business Standard

Analysts' corner

IDFC & Biocon

Related News

IDFC
Reco price/date: Rs 116/May 21;
Current/Target price: Rs 120.4/Rs 147
IDFC has delivered strong performance on growth and margin front. Expected monetary easing and reformatory steps by the government would be major catalysts in further improving the growth and profitability outlook. Healthy asset quality track record and prudent provisioning policy makes IDFC better placed compared to its peers in infra financing. The growth in IDFC’s outstanding disbursements remained well-diversified across telecom, energy and transportation segments. Analysts expect IDFC to report an EPS of Rs 11 and Rs 13 and estimated adjusted book value (for investment in other ventures) of Rs 82 and Rs 92 for 2012-13 and 2013-14, respectively. Maintain Buy.

Motilal Oswal Securities

BIOCON
Reco price/date: Rs 217/May 21;
Current/Target price: Rs 215/Rs 186
Biocon's (BIOS) shares have had an uninspiring run after the termination of the Pfizer deal, which dealt a big blow to its biosimilar insulin aspirations. While the deal is now terminated, it would continue to throw its shadow over future earnings, thanks to an aggressive accounting policy that would see BIOS shift biosimilar insulin R&D costs off the P&L. This, along with use of a creative transaction structure for AxiCorp, leaves analyst frustrated with corporate governance standards in the company, and they have downgraded their accounting and corporate governance rating from amber to red. Stripping out biosimilar insulin (90 per cent valuation haircut) and Dificid, BIOS is currently trading at 12 times FY13 estimated earnings. Espirito has cut its fair value by 47 per cent to Rs 186 (from Rs 350 earlier). Downgrade to sell.

Espirito Santo Securities


Note: Reco price/date refers to the price and date at which the recommendation was made. Target price refers to the fair value of the stock as per the said brokerage

Read more on:   

Read More

Today's picks

The index closed bearish.

Advertisements

Quick Links

 

Market News

Maruti Suzuki India, Axis Bank joins Rs 1-lakh-cr market-cap club

Axis Bank hits a record high of Rs 440, while Maruti Suzuki touched a new high of Rs 3,349 in intra-day deals on BSE.

Marksans Pharma surges on strong Q2 results

The stock rallied 6% to Rs 64 on NSE after reporting 56% yoy growth in net profit at Rs 31 crore in September quarter.

Markets continue winning streak; Sensex up 400 points

The 30-share Sensex is up 412 points at 27,758 and the 50-share Nifty has gained 119 points to trade at 8,288.

Copper down 0.2% on weak global cues

Metal for delivery in November shed 0.14%

Silver down 0.6% on weak global trend

Weak trend trend overseas, eroding demand for the precious metals, pulled down silver prices

Back to Top