Angel Broking on Pantaloon Retail - Target of Rs 284Angel Broking has recommended a buy rating on Pantaloon Retail with a target price of Rs 284 in its December 1, 2008 research report. "Indian Retail Industry is a derivative of the growing economy, changing demographics and preferences of the Indian consumers. According to industry and our estimates, Nominal GDP growth of 12% over CY2008-CY2010E coupled with estimated growth of 7% in the Real private final consumer expenditure (PFCE) of Indian consumers will drive growth of the Total Indian Retail industry to reach US USD 640 billion by CY2010E. We estimate Organised Retail in India to grow at a CAGR of 35% over CY2008-10E to USD 46 billion. Few key drivers of growth of Organised Retail in India are increase in disposable income, growing aspiring middle class segment, increase in investments in Retail, Tier-II and III cities which would drive long-term growth of Organised Retail. Key challenges facing Organised Retail in India are acceptance of Organised Retail by the Traditional retailers (which is leading to tougher regulatory measures by the government), supply chain inefficiencies, high real estate costs and high execution risks in terms of store rollouts."
"Pantaloon Retail (PRIL) is our top pick in the sector as we believe that the company has competitive advantages over its peers in terms of its presence across consumption and price points of Indian consumers, has pan-India presence and lower execution risks. At Rs 210, the stock is trading at 14.2x FY2010E Earnings and 1.8x FY2010E P/BV. We Initiate Coverage on PRIL with a Buy recommendation and SOTP target price of Rs 284," says Angel's research report.
SKP Securities on Everest Kanto - Target of Rs 229SKP Securities has recommended a buy rating on Everest Kanto Cylinder (EKC) with a target of Rs 229 in its December 1, 2008 research report. "EKC has planned a capacity expansion of 2,05,000 cylinders including the capacity for 5000 jumbo cylinders, industrial cylinders at Gandhidham with an estimated capital expenditure of Rs 650 million. EKC has made an aggressive capital expenditure plan in China, through EKC Industries (Tianjin) Co. Ltd, the company’s wholly owned subsidiary in China."
"At the current market price of Rs 140, the stock is trading at a P/E of 15.05x and 12.32x of FY09E and FY10E earnings of Rs 13.37 and Rs 16.34 respectively. We recommend BUY rating on the stock with a target price of Rs 229/- (63% upside) in 18 months implying a P/E multiple of 14x of FY10E earnings," says SKP Securities' research report.
Angel Broking on Jagran Prakashan - Target of Rs 70Angel Broking has maintained its buy rating on Jagran Prakashan with a target price of Rs 70 in its November 28, 2008 research report. "Amid mounting problems for India’s print industry, a silver lining is starting to appear in the form of some easing in newsprint prices. Until now, newsprint prices, one of the largest cost factors for print media, had been rising since mid-2007 contributing to weakening profitability at most of India’s print media firms. Newsprint buyers at media houses say the situation is starting to become more favourable and they hope to drive down prices by USD 100-200 (Rs 4,990-9,980) per tonne when fresh contracts are signed in January."
"Currently, newsprint is available in the spot market at much lower prices than the listed price and buyers are taking that as a cue for lower prices in January. The average official price for imported newsprint in India for the current quarter is USD 960 per tonne. The cost of newsprint generally accounts for 55-65% of the total cost of a newspaper’s operation and a big surge, from USD 560 per tonne in early 2007 to USD 960, had sharply eaten into profitability of publishers, most of who resorted to reducing pages, copies printed or switching to inferior, domestic newsprint. Adding to their woes, an unexpectedly unfavourable exchange rate also dealt a blow as one dollar that could be bought for Rs 40.30 in March, now costs about Rs50, effectively raising the price of newsprint by another 20%. We believe this is a positive development for Print Media companies and maintain Buy on Jagran Prakashan with a target price of Rs 70," says Angel's research report.
Angel Broking on HT Media - Target of Rs 99Angel Broking has maintained its buy rating on HT Media with a target price of Rs 99 in its November 28, 2008 research report. "Amid mounting problems for India’s print industry, a silver lining is starting to appear in the form of some easing in newsprint prices. Until now, newsprint prices, one of the largest cost factors for print media, had been rising since mid-2007 contributing to weakening profitability at most of India’s print media firms. Newsprint buyers at media houses say the situation is starting to become more favourable and they hope to drive down prices by USD 100-200 (Rs 4,990-9,980) per tonne when fresh contracts are signed in January."
"Currently, newsprint is available in the spot market at much lower prices than the listed price and buyers are taking that as a cue for lower prices in January. The average official price for imported newsprint in India for the current quarter is USD 960 per tonne. The cost of newsprint generally accounts for 55-65% of the total cost of a newspaper’s operation and a big surge, from USD 560 per tonne in early 2007 to USD 960, had sharply eaten into profitability of publishers, most of who resorted to reducing pages, copies printed or switching to inferior, domestic newsprint. Adding to their woes, an unexpectedly unfavourable exchange rate also dealt a blow as one dollar that could be bought for Rs 40.30 in March, now costs about Rs 50, effectively raising the price of newsprint by another 20%. We believe this is a positive development for Print Media companies and maintain Buy on HT Media with a target price of Rs 99," says Angel's research report.
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