Analysts' corner

Educomp Solutions, Mundra Port & SEZ, Gandhimathi Appliances & United Phosphorus

EDUCOMP SOLUTIONS
Reco price: Rs 174
Target price: Rs 200

Educomp Solutions's Q2FY12 net profit of Rs 12.8 crore (including MTM forex loss of Rs 37 crore) was significantly below expectation, on back of higher losses in online and higher learning segments. SmartClass performed well during the quarter and the management's FY12 guidance is aggressive. Edelweiss is 8-13 per cent below consensus on our FY12-13 EPS estimates and expects the earnings downgrade cycle to continue. Maintain hold.

Edelweiss Securities

MUNDRA PORT & SEZ
Reco price: Rs 150
Target price: Rs 171

Mundra reported revenues ahead of expectations at Rs 619 crore, a growth of 50 per cent YoY. Ebitda margins were flat YoY at 66.3 per cent for Q2FY12. Interest costs jumped sharply by 40 per cent QoQ to Rs 46 crore, partly on account of a Rs 5-crore loss on derivative contracts in Q2FY12, compared to Rs 22 crore gain in Q2FY11. Consequently, net profit grew 29 per cent YoY to Rs 273 crore. Port volumes continued their upward trajectory, witnessing a 34 per cent YoY growth. Dry bulk volumes were higher on account of a seasonally strong quarter for fertilizer volumes, and container volumes continued to witness good growth. Further increases in throughput will be led by a newly-commissioned HMEL refinery, adding four mt to crude volumes for FY12 at the port. Accumulate.

Prabhudas Lilladhar

GANDHIMATHI APPLIANCES
Current Market price: Rs 311
Fair Value: Rs 378

Gandhimathi Appliances' (Gandhimathi's) Q2FY12 results were in line with Crisil Research's expectations. Revenues grew 63.3 per cent yoy to Rs 110 crore, driven by strong consumer demand for branded kitchen appliances. The company had started supplying table-top wet grinders and mixer grinders to the government from early September and, hence, the coming quarters will see significant growth in revenues.

Crisil Research

UNITED PHOSPHORUS
Reco price: Rs 144
Target price: Rs 200

United Phosphorus is one of the leading generic agro chemical companies in the world. The total income has gone up substantially in the last 3 years showing compounded growth year on year with equal improvement in profit respectively. The recent quarterly 2QFY12 results have shown growth of 40 per cent, as against same period last year . The company's guidance is very positive with revenue guidance being increased from 30 to 35 per cent . Being a global generic agro chemical company with several unique products for crop protection, the next 3 to 4 quarters looks very promising for the company. months. Buy.

Bonanza Portfolio