Garware Offshore: Cruising along

ANALYSTS' CORNER

Brics PCG Research recommends a "buy" on Garware Offshore. The report states the results for 2005 were in line with expectations and it continues to remain bullish on the company.

Although operating income was marginally down by 3.2 per cent y-o-y to Rs 30.9 crore, the EBIDTA margin has improved by 80 bps to 44.3 per cent as against 43.5 per cent in 2004. Net profit increased marginally by 0.8 per cent to Rs 10.6 crore.

This translates into an EPS of Rs 7.3. It has announced a dividend of 12 per cent. The report considers this to be good, considering the major capital outlay program being undertaken over the next three years.

The company has acquired a platform supply vessel from a Norwegian shipping company. It has been deployed on contract with British Gas Production and Exploration India from January 2006 for a period of 12 months, with an option to extend the contract for another year.

Kirloskar: Restructuring bodes well

Enam Securities, in its visit note on Kirloskar Pneumatics, states the company has almost completed its restructuring exercise and has adopted a two-pronged strategy of new product introduction and cost reduction via indigenisation.

This, coupled with a huge opportunity in gas compressors segment and expected revival in water well segment, is likely to take the company to the next level of growth.

The business restructuring and right sizing is almost complete. Economic downturn, high employee costs and legacy of bad debts affected the company's business adversely until FY05.

However, with the help of upturn in general industry, the company has restructured its operations. The company is a leading Indian players in air, gas and refrigerating compressors. From 99-03, it offered VRS to 1470 employees, closed down its Faridabad plant and has written off Rs 45.6 crore bad debts.

Zee Telefilms: Right signals

Brics PCG Research recommends a "hold" on Zee Telefilms. The report states the company has announced a 30-40 per cent hike in advertisement rates across its bouquet of channels, starting April.

The company, which operates around 26 channels in India, is upbeat after some of its programmes recently generated higher TRP ratings and thus captured a greater market share.

Advertisement earnings account for around 45 per cent of the company's total revenue and this will be further boosted by the rate hike.

The report believes that if the company's ongoing as well as future programs continue to fetch higher TRPs, it would be able to garner even higher advertisement revenues.