LUPIN
Reco price/date: Rs 599/Dec 10
Current/Target price: Rs 600/Rs 626
Tricor being a two-player generic market and lower competition in this space, analysts upgrade their revenues in this opportunity from $16 million to $26 million for FY13 and to $39 million for FY14. Analysts have also upgraded the number of launches, excluding OCs to 10 from five earlier. The total number of launches including OCs have been increased from 15 to 20 for FY13 and FY14. Karvy has upgraded its revenues for FY13 by 1.4 per cent on account of better traction in Tricor and US launches. It has also upgraded its EPS estimates for FY13 by 3.8 per cent to Rs 25.9. Maintain 'Hold'.
Karvy Stock Broking
YES BANK
Reco price/date: Rs 455/December 8
Current/Target price: Rs 456/Rs 550
Analysts continue to like YES Bank for its high return profile and expect a 21 per cent return on equity and 1.5 per cent return on assets in FY14. A strong asset growth profile and an improving Casa ratio (which will lower funding costs) are also key positives. In its base case, UBS expects management to achieve a higher loan growth of 30 per cent in FY13/FY14 compared to its current estimates of 27-28 per cent and margins to improve by eight basis points in FY14 to 3.15 per cent, it expects four per cent upside to FY14 EPS estimate. At 1.9 times FY14 estimated book, the stock is trading at attractive valuations. Maintain 'Buy'.
UBS Securities
EROS INTERNATIONAL MEDIA
Reco price/date: Rs 225/December 10
Current/Target price: Rs 217/Rs 265
Eros International Media announced two exclusive movie channels with HBO on December 6. The company’s entry into the premium pay TV market is timed with digitisation. Analysts believe this tie-up increases its brand equity and will monetise its content, without any upfront capital investment adding to its earnings and ROE. However, HBO-EROS might take another year to penetrate at least two per cent of the existing industry subscriber base of 155 million. Analysts see a potential upside of 10 per cent to Eros’ EPS for FY14 due to this tie-up. Maintain 'Buy'.
Kim Eng India
