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:   

Analysts' corner

IDFC & Biocon

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.

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

image

Read More

Today's picks

The index closed bearish.

Recommended for you

Advertisements

Quick Links

Market News

Wheat output, procurement may fall

Chandigarh, 1 AprilThe recent spell of rain in major wheat-growing states has become a concern for millers. In the markets of Madhya Pradesh and ...

Govt hikes import tariff on gold, silver

During the last fortnight of March, the tariff value on imported gold was $375 per 10 grams and on silver at $512 per kg

Banks, rate-sensitives drive markets ahead of RBI policy

The Sensex surges 302 points; logs first weekly gain in three weeks. The Nifty rises 95 points

Delivery-based volumes hit one-year high in March

Earlier, in March 2014, more than half, or 51%, of the total traded shares got converted into delivery before the general elections

Gold shipments into Gujarat register highest rise in last four years: GSECL

The official added that rise in import of gold is a sign that the economy is recovering slowly

 

Back to Top