For 3Q FY 2012, Hitachi Home & Life Solutions (HHLS) reported a 13% y o y decline
in its revenue to Rs. 107 cr from Rs.124 cr in 3Q FY 2011.
In creased expenses for the quarter led to negative operating profit of Rs. 5 cr. The HHLS reported a higher
forex loss of Rs. 3.7 cr on ECB during the quarter as compared to Rs.1.2 cr during
3Q FY 2011.
Operating loss and in creased depreciation and interest cost led to loss of Rs.10 cr as compared to profit of Rs.1.7 cr in 3Q FY 2011.
We expect the company’s sales volume to register a CAGR of 14.1% over
FY 2011-13E, which would lead to its profit in creasing to Rs. 30 cr in FY 2013E from
Rs.29 cr in FY 2011.
At the CMP of Rs.113, the stock is trading at attractive valuations
with PE of 8.3x FY2013E earnings.
We maintain our Buy rating on the stock with a target price of Rs. 157, based on
target PE of 12x for FY 2013E.
Review by Angel Broking
6th Floor, Ackruti Star, Central Road,MIDC
Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956
Website : www.angelbroking.com
in its revenue to Rs. 107 cr from Rs.124 cr in 3Q FY 2011.
In creased expenses for the quarter led to negative operating profit of Rs. 5 cr. The HHLS reported a higher
forex loss of Rs. 3.7 cr on ECB during the quarter as compared to Rs.1.2 cr during
3Q FY 2011.
Operating loss and in creased depreciation and interest cost led to loss of Rs.10 cr as compared to profit of Rs.1.7 cr in 3Q FY 2011.
We expect the company’s sales volume to register a CAGR of 14.1% over
FY 2011-13E, which would lead to its profit in creasing to Rs. 30 cr in FY 2013E from
Rs.29 cr in FY 2011.
At the CMP of Rs.113, the stock is trading at attractive valuations
with PE of 8.3x FY2013E earnings.
We maintain our Buy rating on the stock with a target price of Rs. 157, based on
target PE of 12x for FY 2013E.
Review by Angel Broking
6th Floor, Ackruti Star, Central Road,MIDC
Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956
Website : www.angelbroking.com
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