Fw: Investor's Eye: Update - Aditya Birla Nuvo (Bullishness continues), Provogue India (Price target revised to Rs35)

 

 

Investor's Eye [March 26, 2012]  Sharekhan www.sharekhan.com

Summary of Contents STOCK UPDATE Aditya Birla Nuvo Cluster: Apple Green Recommendation: Buy Price target: Rs1,050 Current market price: Rs951 Bullishness continues We continue to like the strong positioning that Aditya Birla Nuvo's businesses enjoy in their respective fields. The company is amongst the top five players in the insurance, asset management, telecommunications (telecom; Idea Cellular-the fastest growing telecom company; the third in ranking) and apparels (Madura Garments with its marquee brands, consistent and resilient growth, and profitable set-up) businesses. Given its presence in diverse businesses, we value Aditya Birla Nuvo on an SOTP basis, assigning a piecemeal value to each of its businesses and then adjusting the same with the company's consolidated debt to arrive at a price target. Thus, our price target for the stock is Rs1,050 and we maintain our Buy rating on the stock. Provogue India Cluster: Ugly Duckling Recommendation: Buy Price target: Rs35 Current market price: Rs16 Price target revised to Rs35 The event - Provogue India shares get re-listed on the exchanges with demerged status Provogue India (Provogue)'s shares that had got temporarily suspended from trading for the demerger process got listed today on the bourses at Rs17 per share.  As per the scheme of demerger every shareholder holding 1 share of Provogue has received 1 share of Prozone Capital Shopping Centers Ltd (PCSCL; face value Rs2). The face value of Provogue shares has got reduced from Rs2 to Rs1. The capital structure for both, Provogue (the demerged entity that got listed today which now only holds the core retail business) and PCSCL (which will hold all the real estate business and assets) has been illustrated below in a table. Shares of PCSCL will get relisted after it files for the same, which may take one to three months. Our fair value for Prozone works out to Rs27 per share. Based on the auditor's statement, Rs207 crore of the net book value of approximately Rs714 crore has been transferred into the demerged entity (PCSCL). Thus the pre acquisition based on this statement works out in a ratio of 29% (207/714) for PCSCL and 71% for Provogue. Post restructuring, our revised target price for Provogue is Rs35; Maintain Buy: Post restructuring Provogue now holds only the core retail assets that include brand sales- Provogue along with export sales, ie those which were part of standalone financials. Thus our standalone financials and estimates for Provogue remain intact. We expect a decline in FY2012 profits while we expect FY2013 to witness strong recovery with a 26% growth in earnings. Valuing branded business and the export business of Provogue with a blended price earning ratio (PER) at 10x FY2013, we arrive at a target price of Rs35 for Provogue. Thus our revised target price for Provogue now stands at Rs35 and we maintain our Buy rating. Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article.

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Fw: MT Educare LTD IPO: Issue Period - 27 Mar 2012 to 29 Mar 2012

 

IPO - MT Educare Limited
	Issue Period 27 Mar 2012 to 29 Mar 2012 Price Band Rs.74 - Rs.80 Lot Size 80 Equity share and multiple of 80 equity shares thereafter Issue Size Rs. 99 Crore IPO Rating 4/5 CRISIL Listing on BSE & NSE Issue allocation QIB - 50% | HNI - 15% | Retail - 35% Issue highlights (source: RHP) Company was incorporated as MT Educare Private Limited on August 19, 2006 at Mumbai as a private limited company under the Companies Act. Company provides coaching services to students in the secondary, higher secondary school and pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations. Company has operations across the states of Maharashtra, Tamil Nadu, Karnataka and Gujarat, through 190 Coaching Centers in 106 locations, as on May 15, 2011. Company also provides management consultancy services to a coaching center in Dubai which includes providing coaching and administrative support services for secondary and higher secondary school curriculum of various education boards. Funds raised via fresh issue by the company will be used for partially financing the cost of construction of a PUC campus in Karnataka (including cost of acquisition of land), establishing new coaching centres at 20 locations and for general corporate purposes. Invest only after referring to final prospectus.
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