Stock views on RIL, HT Media, Hyderabad Industries

FinQuest on Hyderabad Ind - Target Rs 850

 

FinQuest Research is bullish on Hyderabad Industries and has recommended buy rating on the stock with a target of Rs 850, in its research report.

"Hyderabad Industries (HIL) posted excellent set of numbers for 4QFY10 and FY10, surpassing  our expectations. We had post result interaction with management of HIL and it came our knowledge  that HIL is further expanding its cement sheet capacity by setting up a 90,000 MT plant at Bihar  (at cost of INR 400-450 million; expected to be operational by Mar11) and increasing capacity at  existing UP plant by 90000 MT (at cost of INR 250-270 million; expected to be operational by  4QFY11). We have fine tuned our estimates for FY11E and have incorporated our estimates for  FY12E. At CMP, HIL is trading at 5.2x and 5.0x FY11E and FY12E earnings respectively. We  roll our valuations to FY12E earnings and reiterate BUY rating with target price of Rs 850. (target  FY12E P/E ratio of 6.0x)," says FinQuest Research.

 

 

Angel Securities on HT Media - Target Rs 182

 

Angel Securities is bullish on HT Media and has recommended buy rating on the stock with a target of Rs 182, in its research report.

"For 4QFY2010, HT Media (HTML) reported an advertising growth of 8% yoy, circulation growth of 5% yoy and overall revenue growth of 10.7% yoy to Rs 374.3 crore, on a consolidated basis. However, Earnings registered a multi-fold growth to Rs 48 crore, driven by strong operating performance and a low base. We have revised our Top-line estimates by 4-6% to factor in the revenue traction from Burda JV, and have revised our Earnings estimates by 6-7% to factor in the increased revenue traction from new businesses, higher Margins and lower Interest Expenses. Hence, we revise our Target Price upwards and maintain a Buy on the stock,"says Angel Securities research report.

P Lilladher on RIL - Target Rs 1213

 

Prabhudas Lilladher has come out with its report on RIL-RNRL case. The research firm has maintain 'Accumulate' rating on Reliance Industries, with a SOTP price target of Rs 1,213.

"Reliance Industries (RIL) and Reliance Natural Resources (RNRL) will have to  renegotiate the price of Natural gas within the next six to eight weeks.  This implies that the price decided by the Empowered Group of Ministers  (EGoM) is applicable to all the parties utilizing KG D6 gas. EGoM has decided  a flat price of US$4.2/mmbtu for all the consumers utilizing the KG D6 gas.  As there is no differential pricing for different consumers like power players,  fertilizer players, petchem players etc., the verdict simply signifies that  RNRL will have to buy the gas at government-decided price of  US$4.2/mmbtu."

"The verdict is clearly in favour of RIL. The company will be selling all KG D6 gas at the EGoM decided price of US$4.2/mmbtu. Earlier for calculating KG D6 NPV, we had taken US$2.34/mmbtu gas price for RNRL; this has now increased to US$4.2/mmbtu which will increase our KG D6 NPV by Rs30/share. Consequently, our EPS for FY11E and FY12E is revised by about 4.0-8.0% to Rs69.9 and Rs75.8, respectively. We maintain our 'Accumulate' rating, with a SOTP price target of Rs 1,213."