Havells India Ltd
Industrials-Capital Goods
Valuation and Outlook:
We expect Havells to post a 27.3% CAGR revenue growth over FY17-19E including the revenues from sale of Lloyd Air conditioners. With a very good market positioning, we expect Havells EBITDA margins to reach 13.5% by FY19E. Also exiting from the international business will help the company to focus on domestic markets. We value the company to a P/E of 35.6x of FY19E EPS for an upwardly revised target price of Rs. 546.
Petronet LNG Ltd
Energy
Valuation and Outlook:
Key things to watch out for include any demand pick up from the power sector inspite of closure of Power System Development Fund (PSDF) scheme, prices of LNG, development on Kochi pipeline and any risk from new players in the industry. Given that PLNG is the oldest and largest player in the industry, the company has edge over other players in terms of capacity and cost. We continue to hold positive outlook, in the background of firm contracts from players and low LNG prices. At CMP of Rs. 435, the stock is trading at 14.3x FY19E EPS of Rs 30.4.
Ador Welding Ltd
Industrials-Metalworking Machinery
Valuation and Outlook:
At CMP of Rs. 336, AWL is trading at 17.9x to its FY19E EPS. We ascribe a multiple of 19x FY19E EPS and reiterate a “HOLD” rating for an upwardly revised target price of Rs. 356.
Industrials-Capital Goods
Valuation and Outlook:
We expect Havells to post a 27.3% CAGR revenue growth over FY17-19E including the revenues from sale of Lloyd Air conditioners. With a very good market positioning, we expect Havells EBITDA margins to reach 13.5% by FY19E. Also exiting from the international business will help the company to focus on domestic markets. We value the company to a P/E of 35.6x of FY19E EPS for an upwardly revised target price of Rs. 546.
Petronet LNG Ltd
Energy
Valuation and Outlook:
Key things to watch out for include any demand pick up from the power sector inspite of closure of Power System Development Fund (PSDF) scheme, prices of LNG, development on Kochi pipeline and any risk from new players in the industry. Given that PLNG is the oldest and largest player in the industry, the company has edge over other players in terms of capacity and cost. We continue to hold positive outlook, in the background of firm contracts from players and low LNG prices. At CMP of Rs. 435, the stock is trading at 14.3x FY19E EPS of Rs 30.4.
Ador Welding Ltd
Industrials-Metalworking Machinery
Valuation and Outlook:
At CMP of Rs. 336, AWL is trading at 17.9x to its FY19E EPS. We ascribe a multiple of 19x FY19E EPS and reiterate a “HOLD” rating for an upwardly revised target price of Rs. 356.
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