Brokerage platter: Infosys, HDFC, South Indian Bank
By INDIATIMES NEWS NETWORK |
Religare downgrades Infosys to 'Hold'; lowers target to Rs 2,071
MUMBAI: Religare Securities has revised downward its share price target for Infosys Technologies. Its one-year target price is now Rs 2,071 against Rs 2,327 earlier. The target price is 22 times the expected 2008-09 (Apr-Mar) earnings per share of Rs 94.1. The discounted cash flow-based one-year price target is Rs 1,932, which is 2.2 per cent lower than the current price of 1,977.
“Considering the rising concerns of rupee appreciation and a slowing demand environment, we are downgrading our recommendation from Buy to Hold,” Religare says in its post-earnings report.
The brokerage has downgraded estimates for FY09 to factor in a strong rupee scenario. It anticipates and average realized rate of 39 per dollar for FY09 against earlier estimate of 40.5, with the current exchange rate at 39.3/$. It has revised revenue and EPS estimates down by 3.7 per cent and 7 per cent, respectively
Infosys shares closed at Rs 1930.45, down 2.31 per cent on the BSE.
Religare pegs South Indian Bank at Rs 192
Religare Securities has maintained ‘buy’ on South Indian Bank with target price of Rs 192 post quarterly results. “At Rs 162, the bank is trading at price to book value of 1.4 times and 1.2 times 2007-08 (Apr-Mar) estimate and 2008-09, respectively,” Religare says in its post earnings report.
The bank reported net profit of Rs 35.69 crore for the second quarter ended September, up from Rs 18.81 crore in the same period a year ago. Total income increased to Rs 345.82 crore from Rs 273.09 crore in the corresponding quarter previous year.
South Indian Bank reported muted net interest income growth of 7.4 per cent to Rs 90.6 crore as most loan disbursals were made in September. Hence, net interest income will be fully visible in the next quarter.
Non-interest income for the quarter jumped 91 per cent year-on-year to Rs 35.7 crore on higher fee income and strong recoveries.
Religare expects net interest margin to improve 8-10 basis points with stable yields and lower cost of funds. “The recent equity dilution via private placement at Rs 163 per share was book value accretive for the bank. It will relieve the pressure on cost of funds, improving net interest margins. The higher base would enable the bank to leverage its balance sheet and improve returns on equity in the long term,” the report says.
South Indian Bank share closed at Rs 170.05, up 2.66 per cent on the BSE.
Angel Broking 'Neutral' on HDFC Bank
Angel Broking has maintained a ‘Neutral’ view on HDFC Bank ahead of its second quarter results expected later Friday.
The brokerage expects the bank to report net interest income of Rs 1,148 crore for the quarter ended September, up 36 per cent from the year-ago period. Net profit for July-September is seen at Rs 343 crore.
At the market price of Rs 1,456, the stock trades at price earning ratio of 25.5 times and price to adjusted book value of 3.9 times 2008-09 expected earnings per share of Rs 57 and adjusted book value of Rs 374.
HDFC Bank share closed down 1.76 per cent at Rs 1,430.85 on BSE.
MUMBAI: Religare Securities has revised downward its share price target for Infosys Technologies. Its one-year target price is now Rs 2,071 against Rs 2,327 earlier. The target price is 22 times the expected 2008-09 (Apr-Mar) earnings per share of Rs 94.1. The discounted cash flow-based one-year price target is Rs 1,932, which is 2.2 per cent lower than the current price of 1,977.
“Considering the rising concerns of rupee appreciation and a slowing demand environment, we are downgrading our recommendation from Buy to Hold,” Religare says in its post-earnings report.
The brokerage has downgraded estimates for FY09 to factor in a strong rupee scenario. It anticipates and average realized rate of 39 per dollar for FY09 against earlier estimate of 40.5, with the current exchange rate at 39.3/$. It has revised revenue and EPS estimates down by 3.7 per cent and 7 per cent, respectively
Infosys shares closed at Rs 1930.45, down 2.31 per cent on the BSE.
Religare pegs South Indian Bank at Rs 192
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Religare Securities has maintained ‘buy’ on South Indian Bank with target price of Rs 192 post quarterly results. “At Rs 162, the bank is trading at price to book value of 1.4 times and 1.2 times 2007-08 (Apr-Mar) estimate and 2008-09, respectively,” Religare says in its post earnings report.
The bank reported net profit of Rs 35.69 crore for the second quarter ended September, up from Rs 18.81 crore in the same period a year ago. Total income increased to Rs 345.82 crore from Rs 273.09 crore in the corresponding quarter previous year.
South Indian Bank reported muted net interest income growth of 7.4 per cent to Rs 90.6 crore as most loan disbursals were made in September. Hence, net interest income will be fully visible in the next quarter.
Non-interest income for the quarter jumped 91 per cent year-on-year to Rs 35.7 crore on higher fee income and strong recoveries.
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Religare expects net interest margin to improve 8-10 basis points with stable yields and lower cost of funds. “The recent equity dilution via private placement at Rs 163 per share was book value accretive for the bank. It will relieve the pressure on cost of funds, improving net interest margins. The higher base would enable the bank to leverage its balance sheet and improve returns on equity in the long term,” the report says.
South Indian Bank share closed at Rs 170.05, up 2.66 per cent on the BSE.
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Angel Broking 'Neutral' on HDFC Bank
Angel Broking has maintained a ‘Neutral’ view on HDFC Bank ahead of its second quarter results expected later Friday.
The brokerage expects the bank to report net interest income of Rs 1,148 crore for the quarter ended September, up 36 per cent from the year-ago period. Net profit for July-September is seen at Rs 343 crore.
At the market price of Rs 1,456, the stock trades at price earning ratio of 25.5 times and price to adjusted book value of 3.9 times 2008-09 expected earnings per share of Rs 57 and adjusted book value of Rs 374.
HDFC Bank share closed down 1.76 per cent at Rs 1,430.85 on BSE.
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