Buy La Opala RG Ltd For Target 387.00 

La Opala RG is engaged into the manufacturing and manufacturing of lifestyle products in tableware segment. The company operates in the glass & glassware segment.
* During the quarter, the robust growth of Net  Profit is increased by 98.59% to Rs. 63.33 million.
*La Opala RG Ltd has recommended a Dividend of Rs. 3.50 per share for the year  ended March 31, 2013.
* The company has implemented an expansion in capacity at its Sitarganj unit,  while planning modernization of Madhupur plant.
* Revenue for the quarter rose 31.20% to Rs.399.33 million from Rs.304.36 million, when compared with the prior year period.
* The company entered into the crockery market and introduced a wide range of opalware with a capacity of 688 tons p.a. Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 40%  over 2012 to 2015E respectively.

Investment Highlights
Results updates- Q4 FY13,
The company’s net profit jumps to Rs.63.33 million against Rs.31.89 million in the corresponding quarter ending of previous year, an increase of 98.59%. Revenue for the quarter rose 31.20% to Rs.399.33 million from Rs.304.36 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.5.98 a share during the quarter, registering 98.59% increase over previous year period. Profit before interest, depreciation and tax is Rs.117.58 millions as against Rs.74.63 millions in the corresponding period of the previous year.

Outlook and Conclusion
* At the current market price of Rs.352.00, the stock P/E ratio is at 12.50 x FY14E and 10.73 x FY15E respectively.
* Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.28.16 and Rs.32.80 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 40% over 2012 to 2015E respectively.
* On the basis of EV/EBITDA, the stock trades at 7.52 x for FY14E and 6.53 x for FY15E.
* Price to Book Value of the stock is expected to be at 4.19 x and 3.51 x respectively for FY14E and FY15E.
* We recommend ‘BUY’ in this particular scrip with a target price of Rs.387.00 for Medium to Long term investment.
 
 Buy Wipro Ltd For Target Rs.470


Volume declined QoQ: Wipro's 3QFY13 volumes declined 1% QoQ v/s est of growth of 1.6%; impacted by seasonality and attempt to drive higher productivity. However, pick-up in deal signings partly alleviates concerns.
* PAT higher than estimate: Revenue at USD1,577m and IT Services EBIT margin at 20.2% (after adjusting for ERF) were in line, despite low volumes, due to realization improvement of +3.2% QoQ CC onsite and +3% QoQ CC offshore. However, PAT at INR17.16b beat our est (INR15.95b) on higher other income (INR3.4b v/s est of INR2.3b) and lower tax rate (21.9% v/s est of 23%).
* Guides 0.5-3% QoQ growth for 4QFY13: Prospects of growth revival remain afloat due to [1] better deal closures in 3QFY13 v/s 2QFY13,[2] 1.7x increase in the deal pipeline YoY, 2x increase in the number of large deals in the pipeline YoY. Guidance of 0.5-3% QoQ growth in 4QFY13 is due to low activity levels in 4Q amid budget finalizations, limiting visibility on ramp-ups.
* Current margins should sustain: Wipro's IT Services EBIT margin has stayed in a tight band of 20-21% as lower utilization (at historical lows), and higher SGA have offset currency and productivity tailwinds. We see current margin levels sustainable, given levers of productivity and utilization going forward.
* Upgrading estimates marginally; Buy: Post the 3QFY13 results we have upgraded our EBIT margin est by 20bp/90bp and our EPS est by 2.7%/2.3% for FY14/FY15 to factor in the improved productivity. While uninspiring volume growth has kept the valuation multiple for Wipro in check, we see some traction in revenues, going forward. Wipro's recent announcement of demerger of non-IT business will: [1] improve RoCE by over 3pp, and [2] sharpen focus on IT Services. Maintain Buy.Hold ITD Cementation India Ltd For Target 197.00

The Italian Thai Development Public Company Limited (ITD) was incorporated on 1978 as Cem India Company Limited & obtained Certificate and Commencement of Business on 6th November, 1978.
* ITD Cementation India has bagged major orders during the first quarter of the current year, January to March 2013 worth over Rs. 1500 crores.
* The company's JV with its parent, Italian- Thai Development Public Company Ltd, Thailand has received an order amounting to Rs. 752 crore from the Delhi Metro Rail Corporation.
* ITD has bagged an order from Ghaziabad Vikas Pradhikaran for constructing a sixlane link road and flyover connecting NH 24 with NH 58 for an approximate value of Rs 115.07 crore.
* ITD Cementation India is looking to enhance its presence in civil works for industrial projects.
* Net Sales and Operating Profit of the company is expected to grow at a CAGR of 3% & 8% over 2011 to 2014E respectively.

Investment Highlights
Results updates- Q1 CY13,
ITD is engaged in the business of civil and infrastructure, construction & development has been a major builder of Thailand’s infrastructure, reported its financial results for the quarter ended 31st March, 2013. During the last quarter of the year October 2012 to December 2012, the company experienced some delays and slowdown in some  projects, which affected its performance in the quarter.
The company’s net profit declines to Rs.55.72 million against Rs.119.55 million in the corresponding quarter ending of previous year, a decrease of 53.39%. Revenue for the quarter decreased 7.72% to Rs.3546.83 million from Rs.3843.61 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.4.84 a share during the quarter, registering at 53.39% decrease over previous year period. Profit before interest, depreciation and tax is Rs.414.11 millions as against Rs.507.57 millions in the corresponding period of the previous year.

Outlook and Conclusion
As per the 12th Plan, the forecast for the market size of construction industry for 12th Plan period indicate that the aggregate output of the industry during the period 2012-2013 to 2016-2017 is likely to be Rs. 52.31 lakh crore.
* At the current market price of Rs.179.00, the stock P/E ratio is at 11.44 x CY13E and 10.60 x CY14E respectively.
* Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.15.65 and Rs.16.89 respectively.
* Net Sales and Operating Profit of the company are expected to grow at a CAGR of 3% and 8% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 4.83 x for CY13E and 4.73 x for CY14E.
* Price to Book Value of the stock is expected to be at 0.49 x and 0.47 x respectively for CY13E and CY14E.
* We recommend ‘HOLD’ in this particular scrip with a target price of Rs.197.00 for Medium to Long term investment.