Dish TV India
Reco Price: Rs 61
Target Price: Rs 71

Dish TV reported revenues of Rs4.9bn (up 2% QoQ), EBITDA of Rs1.2bn (EBITDA margin of 24.5% v/s 25.3% in Q2FY12) and adjusted PAT loss of Rs274m (PAT loss of Rs182m in Q2FY12). PAT is adjusted for forex loss of Rs156m. The increased churn, resulting from the aggressive competition will impact subscriber additions and profitability, leading to pressure on per sub breakeven. The higher ad-spends in Q4FY12 will also push margins lower. The weakening INR v/s USD will also see Dish TV absorbing rising set-top box costs. Consequently, we reduce our FY13E EV/EBITDA-based target price to Rs71 (Rs77). We reduce the stock to ‘Accumulate’. - Prabhudas Lilladher



Hero MotoCorp
Reco Price: Rs 1,901
Target Price: Rs 2,101

Hero MotoCorp (HMCL) Q3FY12 results were a tad below our estimate with lower than expected realisations. Average realisations at Rs37.9k/unit were up 0.5% sequentially as against our estimate of 1.0% growth. This in tandem with a 1.1% QoQ increase in raw material cost per vehicle impacted margins to the extent of 10bps. Thus, despite a lower than expected tax rate, net profits at Rs6.13bn were 1% lower than our estimate of Rs6.2bn. The stock is currently trading at 14.0x its FY13E earnings. We see limited upside from the current levels and reiterate an ‘ACCUMULATE’ rating on the stock with a revised target price of Rs2,101 (earlier Rs2,055) discounting FY13E earnings 15.5x. - PINC Research



HUL
Reco Price: Rs 391
Target Price: Rs 379

HUL's strong price performance in recent quarters has been backed by earnings performance in a challenging economic environment. Several positives for near-term earnings remain - expect competitive intensity to remain contained, and expect HUL's brand investments to help industry outperformance on the topline. Going into FY13, however, we believe pricing as well as volume growth shall be under pressure (given high base), and structural issues shall dominate the determination of revenue growth. We assess the (DCF- based) fair value of HUL stock at Rs 379/ share. This corresponds to 26x PER FY13E. Given CMP, we see little opportunity in the stock. We would be more comfortable entering the stock at lower levels. We initiate with REDUCE. - Kotak Securities



HDFC Bank
Reco Price: Rs 485
Target Price: NA

For 3QFY2012, HDFC Bank reported healthy 31.4% yoy growth in net profit to '1,430cr, inline with our as well as street estimates. Steady NIMs coupled with largely stable asset quality was the key highlight of the results. HDFC Bank is trading at 3.3x FY2013 ABV, which is only slightly lower than its median of 3.45x (over FY2005-FY2011), even as the rest of the banks are trading close to the bottom of their valuation range. We believe current valuations largely factor in the positives, leaving limited upside in the stock. Hence, we maintain our Neutral recommendation on the stock. - Angel Broking