Stock Views on JMC Project, C and C Constuctions, Aegis Logistics, Sobha Developers

KRChoksey on JMC Project - Target of Rs 97


KRChoksey Research has maintained its buy rating on JMC Projects (India) with a target of Rs 97 in its November 17, 2008 research report. "Company’s sales increased by 76.4% y-o-y to Rs 325.5 crore. The PAT was flat at Rs 6.8 crores. We have reduced our sales estimates for FY09, as there is no visibility of fresh order inflows. However, we anticipate order execution will be at expected pace. The EBITDA margins have been revised downward, mainly due to an increasing trend in construction expenses."

"Interest cost estimates have been revised upwards due to an increase in interest cost during the quarter. It will impact the PAT margins of the company by 27bps. We have given additional liquidity discount of 10% to company’s multiples. We therefore downgrade our target price to Rs 97, maintaining a BUY rating, with an upside potential of 51.5%," says KRChoksey's research report.


KRChoksey on C and C Constuctions - Target of Rs 137


KRChoksey Research has maintained its buy rating on C and C Constuctions with a target of Rs 137 in its November 14, 2008 research report. "Company’s sales increased by 162% yoy to Rs 129 crore on the back of strong order book position. PAT was flat at Rs 4.95 crores. We have revised our sales estimates for the year upwards by 8.6% due to fresh inflow of orders. However, we anticipate slowdown in order execution thus affecting the topline. The EBITDA margins have been maintained owing to falling commodity prices. An increase in debt levels of the company is anticipated, which will impact the PAT margins of the company. We therefore downgrade our target price from Rs 265 to Rs 137, maintaining a BUY rating, with an upside potential of 25.6%," says KRChoksey's research report.



KRChoksey Aegis Logistics - Target of Rs 96


KRChoksey Research has recommended a buy rating on Aegis Logistics with a target of Rs 96 in its November 17, 2008 research report. "Net sales increased 42.5% y-o-y to Rs 130.9 crore driven by strong growth in both gas (47.6%) and liquid logistics (18.0%) divisions. Net profit dipped 13.0% y-o-y to Rs 7.8 crore."

"In the long run, we firmly believe that the key upside to Aegis’ story is its Auto Gas business, which is likely to be driven by the company’s strong expansion plan and increasing price differential between Auto LPG, with respect to diesel and petrol. At CMP of Rs 67, the stock is trading at 3.2x on FY09E EPS of Rs 20.7. We recommend a BUY on this stock with target price of Rs 96, which represents an upside potential of 43.3%," says KRChoksey's research report.


Emkay Global on Sobha Developers - Target of Rs 155


Emkay Global Financial Services has maintained its buy rating on Sobha Developers with a target of Rs 155 in its November 7, 2008 research report. "Net revenues decreased by 9.3% YoY to Rs 3.0 billion. PAT decreased by 13.0% YoY to Rs 490 million. We are revising our NAV estimates to Rs 367 / share (previous Rs 973), due to a) increase in cost of funds b) delay in projects c) factoring current net debt d) decrease in average realisations and rentals from commercial properties and e) increase in cap rate. We however maintain our BUY rating on the stock with target price of Rs 155 (earlier Rs 554) based on 60% discount to NAV and 2x EV / EBITDA of its contractual income," says Emkay Global Financial Services' research report.