Stock picks and hot stock market investing ideas from stockinvest.in
Orbit Corporation
Current market price: Rs 90.10
Brokerage: Edelweiss Securities
Orbit Corporation (Orbit) reported revenues of Rs 73.8 crore, down 9.8 per cent q-o-q and 24.3 per cent y-o-y, for Q2 FY09. The sequential decline was due to lower completion percentage at Orbit WTC and Orbit Eternia. Net profit for the quarter stood at Rs 13.7 crore, as against Rs 39.9 crore in Q2 FY08 and Rs 18.2 crore in Q1 FY09, a decline of 65.6 per cent and 24.8 per cent, respectively.
Three of Orbit’s projects are nearing completion and the company expects Rs 160 crore from customers of these projects by the end of CY08. This amount will be sufficient to fund its construction cost of Rs 100 crore for the year. Further, the company has six projects under construction aggregating 1.06 million square feet of saleable area.
These projects are highly monetisable, albeit at a right price and part sale at few of these projects can generate enough funds for the company to service its debt of Rs 180 crore, including interest cost of Rs 30 crore. The current property environment is adverse and prices are expected to drop, accompanied with lower volumes.
Consequently, the brokerage has revised down its revenue estimates to arrive at an average EPS of Rs 23.1 for FY09 and FY10. At Rs 91, the stock appears attractively priced at 0.5x FY10E book value. Maintain Buy.
Read about other stock market recommendations and hot stock picks and share market investing ideas from Stockinvest.in
Stocks discussed: Infosys, P & G, Axis Bank, L& T
Orbit Corporation
Current market price: Rs 90.10
Brokerage: Edelweiss Securities
Orbit Corporation (Orbit) reported revenues of Rs 73.8 crore, down 9.8 per cent q-o-q and 24.3 per cent y-o-y, for Q2 FY09. The sequential decline was due to lower completion percentage at Orbit WTC and Orbit Eternia. Net profit for the quarter stood at Rs 13.7 crore, as against Rs 39.9 crore in Q2 FY08 and Rs 18.2 crore in Q1 FY09, a decline of 65.6 per cent and 24.8 per cent, respectively.
Three of Orbit’s projects are nearing completion and the company expects Rs 160 crore from customers of these projects by the end of CY08. This amount will be sufficient to fund its construction cost of Rs 100 crore for the year. Further, the company has six projects under construction aggregating 1.06 million square feet of saleable area.
These projects are highly monetisable, albeit at a right price and part sale at few of these projects can generate enough funds for the company to service its debt of Rs 180 crore, including interest cost of Rs 30 crore. The current property environment is adverse and prices are expected to drop, accompanied with lower volumes.
Consequently, the brokerage has revised down its revenue estimates to arrive at an average EPS of Rs 23.1 for FY09 and FY10. At Rs 91, the stock appears attractively priced at 0.5x FY10E book value. Maintain Buy.
Read about other stock market recommendations and hot stock picks and share market investing ideas from Stockinvest.in
Stocks discussed: Infosys, P & G, Axis Bank, L& T
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