RSS Feed
Twitter
8:43 AM
bullishmumbai
PUNTER CALL
SUJANA @13 TGT:13-25++(SUJANA UNIVERSAL IND.)
DELIVERY BASIS
BUY NATIONAL OXYGEN @53 TGT:70
(NATNOXY-507813)
BUY NOIDA TOLL TGT:65 IN ONE MONTH
BUY INOXLEISUR CODE:532706 TGT:150+
RUMOR ANIL AMBANI TAKE OVER THE COMPANY
INTRA DAY CALLS -TECHNICAL:
(NATNOXY-507813)
BUY NOIDA TOLL TGT:65 IN ONE MONTH
BUY INOXLEISUR CODE:532706 TGT:150+
RUMOR ANIL AMBANI TAKE OVER THE COMPANY
INTRA DAY CALLS -TECHNICAL:
Buy CIPLA ABOVE @ 232 Target 235-239-247. SL 227.
Buy HINDALCO ABOVE @ 194 Target 197-200-208. SL 189.
Buy JETAIRWAYS ABOVE @ 561 Target 567-574-591. SL 551.
BUY IFCI Abv 59 SL:56 TGT:65
BUY UNITECH ABV 282 SL:277 TGT:288-95
BUY INDIABULLS (Financial Services) Abv 525 SL:518 TGT:555+
BASF India
Cluster: Ugly Duckling
Recommendation: Buy and Hold
Price target: Rs330
Current market price: Rs210
Agro products boost revenues
Result highlights
The stand-alone Q4FY2008 results of BASF India (BASF) are in line
with our expectations. The net sales of the company grew by 20.3%
year on year (yoy) to Rs193.4 crore, mainly driven by a strong 29.6%
growth in the sales of agricultural products and a 20.2% growth in
the sales of performance products. The plastic division's sales also
grew by a healthy 18.1%.
The operating profit margin (OPM) during the quarter remained flat at
5.1% yoy. The margin for the performance product and chemical
divisions improved while the same for the agricultural product and
nutrition division, and the plastic division declined during the
quarter. Consequently, the operating profit grew by 18.5% to Rs9.8
crore in Q4FY2008.
Despite increased interest and depreciation charges, the company's
net profit increased by 20.2% to Rs4.4 crore during the quarter.
For FY2008, the consolidated net sales grew by 24.5% to Rs1,053.6
crore and the profit after tax (PAT) grew by 14.8% to Rs57.5 crore on
the back of the solid performance by the agricultural product and
nutrition division during the year.
We expect the consumption boom in the company's user industries
(white goods, home furnishings, paper, construction and automobiles)
to continue and hence we remain optimistic about the company's growth
prospects.
We believe the stock is trading at attractive valuations of 6.9x
FY2009E consolidated earnings and an enterprise value (EV)/earnings
before interest, depreciation, tax and amortisation (EBIDTA) of 3.9x.
We maintain our Buy recommendation on the stock with a price target
of Rs330.
Recommendation: Buy and Hold
Price target: Rs330
Current market price: Rs210
Agro products boost revenues
Result highlights
The stand-alone Q4FY2008 results of BASF India (BASF) are in line
with our expectations. The net sales of the company grew by 20.3%
year on year (yoy) to Rs193.4 crore, mainly driven by a strong 29.6%
growth in the sales of agricultural products and a 20.2% growth in
the sales of performance products. The plastic division's sales also
grew by a healthy 18.1%.
The operating profit margin (OPM) during the quarter remained flat at
5.1% yoy. The margin for the performance product and chemical
divisions improved while the same for the agricultural product and
nutrition division, and the plastic division declined during the
quarter. Consequently, the operating profit grew by 18.5% to Rs9.8
crore in Q4FY2008.
Despite increased interest and depreciation charges, the company's
net profit increased by 20.2% to Rs4.4 crore during the quarter.
For FY2008, the consolidated net sales grew by 24.5% to Rs1,053.6
crore and the profit after tax (PAT) grew by 14.8% to Rs57.5 crore on
the back of the solid performance by the agricultural product and
nutrition division during the year.
We expect the consumption boom in the company's user industries
(white goods, home furnishings, paper, construction and automobiles)
to continue and hence we remain optimistic about the company's growth
prospects.
We believe the stock is trading at attractive valuations of 6.9x
FY2009E consolidated earnings and an enterprise value (EV)/earnings
before interest, depreciation, tax and amortisation (EBIDTA) of 3.9x.
We maintain our Buy recommendation on the stock with a price target
of Rs330.
Posted in 
