Prabhudas Lilladher(PL) has downgraded the Cummins India to market performer due to disappointing export performance for Q1FY02.
The exports estimates were revised downwards by 3.8 per cent due to production bottlenecks and domestic sales estimates by 4.8 per cent due to heightened despondence in investment climate. Overall sales and net profit estimates for FY2002 were downgraded by 4 per cent and 12 per cent, respectively.
Ask Raymond James have recommended sell on Gillette. According to the report, Gillette's restructuring of its inventory pipeline will hit its revenues in CY2001.
Besides, with Gillette India controlling 50 per cent of the total shavings blades and systems market in India in terms of value, it will now have to look to increase the size of the entire market rather than merely gaining marketshare, for incremental growth. And, the overall market has remained stagnant for three years (CY1997-CY2000) at Rs 5bn.
Prabhudas Lilladher (PL) has recommended an outperformer rating on Dabur India. According to PL, Dabur is expected to maintain a double-digit topline growth even under adverse overall consumer demand, notwithstanding a flat Q1FY02.
Dabur's strong brand equity and reduced raw material costs is expected to drive earnings growth in FY2002. PL projects Dabur's EPS to grow at 28.2 per cent in FY2002 and 18.1 per cent in FY2003.
Goldman Sachs has lowered its earnings estimates on HCL Technologies by 4.4 per cent in FY02. Also, the 12-month share price target has been lowered from Rs 540 to Rs 430 to reflect a slower 12-month growth outlook.
It has said that the near-term share weakness can be used to build a position as the company's underlying business remains robust. The Recommended List rating has been reiterated on the stock.
