NTPC - The Smart Investor - Business Standard

Sector Valuation Snapshot 25 November 2010MCap(Rs mn)FDEPS(Rs)FDEPS Growth(%)EBITDA Margin(%)PAT Margin(%)ROE(%)ROCE(%)Adj. Debt/EquityRatio (x)Companies CMP (Rs) Target (Rs) RecoFY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12ECEMENTACC 996 1,180 Buy 186,947 59.5 70.5 (30.4) 18.4 24.8 26.8 15.1 15.8 29.4 17.7 27.8 17.0 0.1 0.1 16.7 14.1 9.8 8.0 3.1 2.8Ambuja Cement 141 165 Buy 214,976 8.6 10.0 7.3 16.8 28.2 28.7 18.0 18.1 20.1 18.9 19.6 18.6 0.0 0.0 16.4 14.1 10.0 8.4 3.3 2.9Birla Corp 389 525 Buy 29,970 58.4 70.2 (19.3) 20.2 25.3 27.4 19.6 19.9 36.3 22.7 28.4 17.7 0.4 0.2 6.7 5.5 4.8 3.7 1.7 1.4Century Textiles 455 538 HOLD 42,308 34.9 41.3 (26.9) 18.3 16.3 18.0 7.1 7.7 17.0 17.3 9.1 9.2 1.3 1.3 13.0 11.0 5.7 4.7 2.1 1.8Grasim Industries 2,209 2,900 Buy 202,527 222.2 263.3 (33.7) 18.5 23.8 25.5 10.5 11.0 26.6 14.7 18.6 11.7 0.5 0.4 9.9 8.4 5.6 4.6 1.6 1.4India Cements 109 130 Hold 33,421 3.4 6.3 (69.4) 85.5 12.4 14.9 2.8 4.5 8.0 2.5 6.9 3.5 0.4 0.5 32.3 17.4 12.5 9.2 0.8 0.8JK Lakshmi Cement 58 94 Buy 7,060 8.6 15.1 (56.6) 75.6 19.1 23.2 7.5 10.7 26.0 10.0 15.2 6.6 0.9 1.1 6.7 3.8 6.7 4.5 0.7 0.7Mangalam Cement 139 190 Hold 3,720 29.5 34.2 (33.7) 15.9 22.7 26.0 12.8 12.6 34.9 18.9 33.9 17.0 0.0 0.4 4.7 4.1 2.5 1.8 0.4 0.3Orient Paper & Industries 57 70 Buy 11,013 7.3 9.5 (12.8) 30.7 17.0 18.3 8.3 9.5 22.5 16.9 16.1 12.1 0.7 0.6 7.8 6.0 5.2 4.2 1.4 1.2Shree Cement 2,060 2,550 Buy 71,764 124.5 159.4 (44.6) 28.1 29.1 30.7 11.7 10.7 51.4 21.3 25.0 11.9 1.1 1.0 16.5 12.9 7.2 4.9 3.9 3.2UltraTech Cement 1,126 1,260 Buy 308,638 58.4 72.7 (39.6) 24.5 21.9 23.4 10.7 11.5 28.8 16.2 21.0 12.4 0.5 0.4 19.3 15.5 9.9 8.0 3.4 2.9Aggregate 1,112,345 - - - - 22.9 24.6 11.5 12.1 14.4 11.8 7.9 6.3 2.4 2.1CONSTRUCTIONAhluwalia Contracts 161 252 Buy 10,130 16.0 19.3 23.0 20.7 11.0 10.9 5.0 4.9 33.5 29.9 25.6 24.1 0.5 0.4 10.1 8.3 4.4 3.6 2.9 2.2Hindustan Construction Co 55 73 Hold 33,632 1.8 1.9 12.9 3.9 12.3 12.2 2.5 2.2 7.0 6.9 7.5 7.7 1.9 1.8 30.4 29.3 11.7 9.7 2.1 2.0IRB Infrastructures Developers 223 287 Hold 74,084 15.0 17.5 29.2 17.1 39.6 33.1 18.2 13.7 20.2 19.6 11.7 10.7 1.9 2.1 14.9 12.7 9.0 7.0 3.0 2.5IVRCL Infrastructures 136 178 Buy 36,206 7.6 9.6 20.9 25.4 9.4 9.3 3.4 3.4 10.6 12.0 9.9 10.4 1.1 1.1 17.8 14.2 9.8 7.9 1.8 1.6Jaiprakash Associates 121 150 Buy 257,724 4.2 5.6 12.7 32.1 23.5 24.6 7.1 7.7 10.3 12.2 6.7 8.1 1.7 1.7 28.7 21.7 8.3 6.5 2.7 2.4L&T 2,017 2,330 Buy 1,225,882 73.2 90.3 32.6 23.3 13.5 13.2 8.3 8.3 28.4 27.6 12.9 13.6 1.6 1.3 27.6 22.3 18.5 15.3 5.1 4.2Nagarjuna Construction Co 134 212 Buy 34,408 9.3 10.0 17.8 7.1 10.2 10.2 4.1 3.6 10.2 10.1 8.8 8.7 1.0 1.3 14.4 13.4 9.2 7.5 1.4 1.3Patel Engineering 345 469 Buy 24,101 19.9 27.2 4.6 36.4 14.8 14.8 5.4 5.6 10.3 12.6 7.9 8.9 1.3 1.4 17.3 12.7 10.2 7.8 1.7 1.5Punj Lloyd 111 89 Sell 36,796 2.6 7.5 NM 189.0 7.2 9.5 1.0 2.2 2.8 7.8 5.1 7.5 1.2 1.4 42.8 14.8 11.6 7.1 1.2 1.1Reliance Infrastructure 933 1,390 Buy 228,513 60.6 65.8 6.9 8.7 10.7 13.0 10.2 9.0 7.5 7.3 6.9 6.9 0.6 0.7 15.4 14.2 15.8 10.6 1.0 0.9Simplex Infrastructure 421 513 Hold 20,830 28.6 34.8 11.4 21.5 10.0 10.0 2.8 2.8 13.7 14.8 7.1 7.4 1.4 1.4 14.7 12.1 6.8 5.7 1.9 1.7Aggregate 1,982,306 - - - - 13.8 14.2 7.1 7.0 23.4 19.1 13.8 10.8 2.8 2.5FMCGAsian Paints 2,604 3,000 Buy 249,655 92.7 113.1 0.7 22.0 17.4 18.0 11.6 12.1 45.7 43.9 41.4 40.3 0.1 0.1 28.1 23.0 18.5 15.3 11.4 9.0Britannia 398 450 Hold 47,571 11.0 19.8 (7.8) 79.7 4.6 6.4 2.9 4.5 43.5 66.1 16.5 25.9 2.0 1.7 36.1 20.1 26.4 15.9 14.8 12.1Colgate 876 860 Sell 119,103 32.4 35.1 4.1 8.5 22.4 21.5 19.7 18.9 129.5 129.3 128.1 128.0 0.0 0.0 27.0 24.9 22.8 21.0 33.6 30.9Dabur 94 110 Hold 164,237 3.2 4.0 13.0 24.0 18.9 19.6 14.2 15.1 50.7 47.0 42.5 40.2 0.3 0.1 29.4 23.7 22.3 18.5 12.9 9.8Emami 450 450 Sell 68,015 15.7 18.4 31.0 16.6 22.9 22.5 18.8 18.4 33.9 31.9 26.2 25.7 0.3 0.3 28.6 24.5 23.5 20.1 8.7 7.1GCPL 416 460 Hold 134,581 15.6 18.2 38.1 16.5 20.0 19.7 14.2 13.4 37.4 30.9 24.7 18.4 0.9 0.8 26.6 22.8 20.6 16.8 7.7 6.5GSK Consumer 2,313 2,200 Sell 97,286 69.0 82.3 24.6 19.4 15.7 16.2 12.6 12.6 29.2 29.1 28.4 28.4 0.0 0.0 33.5 28.1 24.5 20.0 9.0 7.5HUL 300 330 Hold 654,259 9.9 11.4 2.7 15.5 13.3 13.9 11.2 11.5 76.7 75.4 76.4 74.9 0.0 0.0 30.3 26.3 24.6 20.9 21.5 18.4ITC 174 210 Buy 1,336,006 6.2 7.6 12.6 22.2 32.1 33.7 21.5 22.6 30.6 32.2 30.4 32.0 0.0 0.0 28.0 22.9 18.6 15.2 8.0 6.9Jyothy Labs 260 305 Hold 20,980 12.3 14.2 20.3 15.2 15.7 14.7 13.5 12.7 18.6 16.1 18.4 15.9 0.0 0.0 21.2 18.4 14.9 13.0 3.1 2.8Marico 136 150 Buy 83,278 4.8 5.7 19.4 20.7 13.8 14.2 9.5 10.0 38.5 35.8 27.1 28.7 0.3 0.3 28.5 23.6 19.9 16.8 9.7 7.5Nestle 3,793 3,500 Hold 365,687 80.6 100.7 16.9 24.9 19.6 20.7 12.7 13.4 125.4 137.4 125.7 137.6 0.0 0.0 47.0 37.7 30.6 24.4 55.5 48.5Aggregate 3,340,658 20.3 21.2 14.5 15.1 30.0 24.8 21.3 17.5 11.2 9.5P/E(x)EV/EBITDA(x)P/BV(x)21