(1) net-cash surplus status;
(2) strong balance sheet-relative to peer-set;
(3) improved order book and revenue visibility (post Q3FY12) until FY13E;
(4) high probability of upsides in UCP business from pick-up in demand;
(5) completion of low margin orders (Sidar and Rohini Industrial Electrical) over the next 2 quarters-to result in cleaner start to FY13E;
(6) strong 32% earnings growth in FY13E on favourable base effect.
We retain our FY13E earnings estimates of Rs.8.7 per share. We reiterate Voltas Ltd as our preferred pick in the ECG sector."
Now, I do not understand why the analysts consider previous quarter results so sacred while recommending a counter---these are dead data and we need to look forward. Isn't it? Moreover, most of them are tuned according to the market conditions, which means if the market is down show not so good results and vice-versa--most them are accounting gimmicks. When a well known analyst says its target should be Rs.150 and a reputed brokerage house gives a target of Rs.145, this fellow comes from nowhere with poor understanding of the sector/company and gives a sell call on a television channel leading to exit of some of the long term investors out of panic. But I think the markets did not believe him and stock did not break the strong support zone of Rs.115-116. Yes, once we stop believing these fools and morons, the channels would probably stop bringing these so-called analysts who have no accountability, but whose motives are to make money for their own clients at the cost of the investors on the other side of the TV screen/s.
I wrote yesterday, in this blog: Crude Oil Crashes while Gold rises: Benchmark 10-year US Treasury yields falls below 2% for the first time in over four weeks on Tuesday; German bond yields comes lower than Japanese yields for the first time since January 1988, according to a Merrill Lynch report. Moreover, India has nothing much to do, with what happens in one two distressed countries in Europe!! We have seen how we performed even in one of the worst conditions, the present situation is much better.....These newspaper reports are just for public consumption and we need to read between the lines.......