| A large portion of this growth will come through inorganic means. The company is cash rich with almost Rs 32 net cash per share post the FCCB issue. Its existing core operations are also turning around with a 57 per cent growth in PAT in FY05 and a 140 per cent y-o-y jump in the last two quarters. |
| The report adds, "We are upgrading our target price to Rs 258 based on an upside of 38.7 per cent and expect an EPS CAGR of 21 per cent in FY05-07E, not accounting for any inorganic initiatives. The stock offers good value at 6.9x FY06 EV/ EBITDA and 11.6x FY06 P/E. |
| Titan: Geared for growth |
| According to an Enam Securities report Titan Industries is aspiring for growth with a focus on time products and jewellery divisions and has lined up a slew of measures aimed at achieving its growth objective. |
| The report adds, "We believe the introduction of low priced sub-brand under Sonata umbrella, positioned in the mass segment, is expected to drive volume growth in time products. The growth in the jewellery division (28 per cent CAGR in the last five years) is expected to be maintained. |
| We expect gem-studded jewellery to contribute 40 per cent of jewellery sales in three years owing to the focus on improving revenue from high value and high margin. |
| Going forward, as the proportion of gems-studded jewellery increases and lower revenue expenditure write offs-VRS, the EBITDA margin is expected to improve from 7.4 per cent in FY05 to 10 per cent in FY08E. Revenue from precision engineering segment stood at Rs 40 crore. |
| Patni: Derisking revenues |
| Edelweiss Securities reiterates its value buy on Patni Computer Systems which witnessed a consistent improvement in business metrics. The report states that Patni has made rapid strides in derisking its revenue streams over the past two years. |
Top Section
Explore Business Standard