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Analysts' corner

Source : BUSINESS_STANDARD
Last Updated: Thu, Apr 04, 2013 18:00 hrs
​Infy's business

ZENSAR TECHNOLOGIES
Reco price/date: Rs 242/April 2;
Current/target price: Rs 243/Rs 321
Zensar is through with the integration of Akibia, which it acquired in November 2010 in the IMS space and is ready to reap benefits from the same. The company has won some good deals in the past few months post its verticalised strategy. The focus also has been shifted to larger deals and better margins. We believe synergies of Akibia integration, verticalised approach for sectors like manufacturing, retail, insurance and targeting bigger deals should augur well for the company. We expect bounce back in revenues as well as uptick in the margin performance of the company in the coming quarters. The stock is trading at 5.8 times and 4.5 times its FY13E and FY14E earnings. Initiate Buy.



-NIRMAL BANG

NITIN FIRE PROTECTION INDUSTRIES
Reco price/date: Rs 60/April 1;
Current/target price: Rs 60/Rs 68
Nitin Fire Protection Industries Ltd's (NFPIL) strong position in the Indian fire protection market, coupled with the high growth outlook for the industry justify a fundamental grade of 4/5 for the company. Domestic revenue for NFPIL is expected to grow at a CAGR of around 35.8 per cent between FY13 & FY15, as against three per cent for international business. Around 94 per cent of the company's revenue comes from turnkey solutions and six per cent from manufacturing of high pressure seamless cylinders. The company is expected to maintain Ebitda margin of 15 per cent and net profit margin of 10-11 per cent in the coming years.

-CARE RESEArCH

OIL INDIA
Reco price/date: Rs 508/April 2;
Current/target price: Rs 516/Rs 610
We have raised our earnings for FY14-15E by 4-12 per cent to reflect our expectation of higher APM gas prices of $8/bbmtu (according to the recommendations of the Rangarajan committee), though the government is yet to take a final decision on this. With the oil and finance ministires, as well as the PMO all speaking in favour of a review of the domestic gas pricing policy, there appears to be greater willingness within the govt to accept higher gas prices. Also, from a political standpoint, a hike in APM gas prices could be a pre-requisite to justify higher KG gas prices w.e.f. FY15, given the recurrent controversies surrounding the KG-D6 block. We now base our upstream subsidy share assumption for FY14-15E on $56/bbl of production, in line with FY13TD trends and consistent with our assumptions for ONGC. Buy.

-citi research

HATHWAY CABLE
Reco price/date: Rs 261/ April 1;
Current/target price: Rs 273/Rs 300
Given the low digital penetration in Phase II we expect a revised deadline for 100 per cent DAS in these cities. Digitisation offers a drastic positive change in the business model for Hathway led by multiplication in subscription revenues over the next two-three years. We read the top- and mid-level changes in the management as a step to make the business more consumer focused which to our view is the way forward for MSOs. We maintain a positive stance on Hathway with an 'Add' rating and a revised one-year price target of Rs 300 (12x EV/Ebitda FY15E). Maintain Add.

-Spark Capital

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