Analysts' Corner

GCPL, Kalpataru Power & Jaiprakash Associates

GODREJ CONSUMER PRODUCTS
Reco Price: Rs 390,
Target Price: Rs 425
Godrej Consumer Products(GCPL) is one of the leading players in the FMCG market, catering to Indian household with many well known brands. GCPL’ s Q4FY11 top line grew by 96 per cent YoY from Rs 999.50 crore in Mar 2011 against Rs 509 crore in the previous year aided by revenue traction from the company’s recent acquisitions on a low base. Net profit grew 55 per cent YoY, driven by strong revenue growth in almost all segments. With various acquisitions during the year and various other’s in pipeline, Company is expected to make its strong presence felt in the international markets as well. With increasing growth in the whole FMCG segment, the company is expected to continue its growth momentum at a CAGR of 18 per cent over FY11-13. Maintain buy.

— Bonanza Portfolio

KALPATARU POWER
Reco Price: Rs 120,
Target Price: Rs 160
Kalpataru Power’s (KPP) Q4FY11 results fell short of expectations essentially on modest revenue growth in the transmission and distribution segment and a revenue decline in the infrastructure segment. KPP’s order book totalled Rs 6,000 crore at the end of FY11, with 75 per cent of the order backlog covered under price variation clauses. KPP’s revenue/ net profit for Q4FY11 came in at Rs 880 crore/Rs 60 crore, up 5.5/7.2 per cent YoY. The Ebitda margin for the quarter remained flat YoY at 11.1 per cent. Revenue growth in the T&D segment moderated to 7.2 per cent YoY for the quarter versus 50 per cent growth recorded in Q4FY10 on account of delays in project execution in Algeria. The Ebit margin for the segment contracted 10bps/40bps for Q4FY11/FY11 to 9.9/10.4 per cent. Maintain buy.

— Religare Institutional Research

JAIPRAKASH ASSOCIATES
Reco Price: Rs 88,
Target Price: Rs 96
Jaiprakash Associates' adjusted net profit at Rs 287 crore (up 17 per cent yoy) is inline with estimates, led by real estate Ebit up 7.3 times yoy to Rs 285 crore. Construction Ebit was down 46 per cent yoy to Rs 218 crore, Cement Ebit up 57 per cent yoy to Rs 223 crore. Revenues at Rs 3,998 crore ( up 21.4 per cent yoy) led by real estate revenue up 4.8 times yoy to Rs 597 crore - positive surprise, Cement realizations up 8.7 per cent restricts revenue growth to 27.2 per cent yoy at Rs 1568 crore. Massive expansion of cement capacity, continue to pose pressure on realizations, coupled with input cost pressures resulted in Ebita/ton falling 36 per cent to Rs 529. Upgrade FY12E earnings by 2.7 per cent to Rs4.7/share. Accumulate.

— Emkay Research