Emkay Global views on Lupin, CRISIL, Sintex Industries

Emkay Global on Lupin - Target of Rs 789
Emkay Global Financial Services has recommended a buy rating on Lupin with a price target of Rs 789 in its research report.

"Lupin deserves a re-rating in valuations given its strong presence across the entire pharmaceutical gamut, outperformance of peers and just mid cap valuations. Lupin has attained sizable revenues across markets, pushing it into the league of big pharma companies. We initiate coverage on the stock with a buy rating with a price target of Rs 789," says Emkay Global Financial Services' research report.


Emkay Global on CRISIL - Target of Rs 3650

Emkay Global Financial Services has recommended a buy rating on CRISIL with a price target of Rs 3,650 in its research report.

"CRISIL’s CY08 numbers were in line with our expectations. The operating revenues have grown by 31%yoy to Rs 5.3 billion. The reported net profit at Rs 1.4 billion has grown by 67.7% yoy. However Q4CY08 performance was moderate on account of slower growth in advisory business, Forex losses and one-time expenditure. The reported operating margins contracted by 266bps yoy and 1,630bps sequentially to 27.4% during the quarter on account of higher employee expenses, goodwill write off and Forex loss during the quarter."

"The stock is currently quoting at 9.3x CY09E EPS, The company has declared a total dividend of Rs70 per share (including Rs 35 per share interim) reflecting a dividend yield of 3.3%. We maintain our BUY recommendation with price target of Rs 3650," says Emkay Global Financial Services' report.


Emkay Global on Sintex Industries - Target of Rs 112

Emkay Global Financial Services has maintained its buy rating on Sintex Industries with a target price of Rs 112 in its research report.

"The current economic situation has prompted us to re-visit our earnings estimates for Sintex. We expect stumbling blocks in key business interests including monolithic construction, important growth driver for Sintex. Consequently, we have revised our assumptions for FY08-FY11E and factored-

1) lower revenue CAGR of 68% in the monolithic construction vertical versus earlier CAGR of 93%,

2) 8% revenue CAGR in standalone custom molding vertical versus 30% CAGR earlier,

3) 25% revenue CAGR in standalone prefabs vertical versus 36% CAGR earlier and 4) 29% decline in net profit of subsidiaries versus 64% CAGR earlier. The overall impact on consolidated earnings is 13% (Rs 23.7), -19% (Rs 24.8) and -26% (Rs 29.6) for FY09E, FY10E and FY11E respectively."

"We expect revised earnings CAGR of 23% during FY08-FY11E. At CMP of Rs 88, the stock is trading at a valuation of 3.5x FY10E earnings and 0.5x FY10E book value - attractive valuations for growth business. Thus in light of strong growth prospects, healthy balance sheet, excellent track record and ROIC of 13%, we maintain ‘BUY’ with a revised target price of Rs 112," says Emkay Global Financial Services' research report.