Patel Engineering CMP 118
Slowdown witnessed in order inflows, especially in hydro power segment Order inflow in the hydro power segment has witnessed a slowdown in past 3-4 quarters and overall order inflow in this segment for the company is also lower than our expectations. Patel Engineering received order inflow to the tune of Rs 7bn in the last quarter from the Andhra Pradesh State Government for the modernization of the Krishna Delta System in the irrigation segment and is the lowest bidder in another Rs 15bn worth of orders. The current order book of company is expected to drive the revenue growth between FY09-FY10, however an increased pace of order inflows is required to maintain the growth momentum going forward.
ACCUMULATE Patel Engineering with a price target of Rs.227
Zee Entertainment CMP 108
Rating losses, competition, deteriorating macro to weigh on advertising revenues in FY10E; recent FWICE strike doesn't help After the recent entry of three new GECs (9X, NDTV Imagine and Colors), Zee TV's ratings have been under tremendous pressure. The impressive launch and programming of Colors has resulted in it gaining the No.2 position from Zee TV. Zee TV's GRP share has declined from an average of 25.8% in Q4FY08 to 18.5% in Q2FY09. Zee TV has also lost out on share of the top 100 programs,
over the period.
Accumulate with a target of 140
Slowdown witnessed in order inflows, especially in hydro power segment Order inflow in the hydro power segment has witnessed a slowdown in past 3-4 quarters and overall order inflow in this segment for the company is also lower than our expectations. Patel Engineering received order inflow to the tune of Rs 7bn in the last quarter from the Andhra Pradesh State Government for the modernization of the Krishna Delta System in the irrigation segment and is the lowest bidder in another Rs 15bn worth of orders. The current order book of company is expected to drive the revenue growth between FY09-FY10, however an increased pace of order inflows is required to maintain the growth momentum going forward.
ACCUMULATE Patel Engineering with a price target of Rs.227
Zee Entertainment CMP 108
Rating losses, competition, deteriorating macro to weigh on advertising revenues in FY10E; recent FWICE strike doesn't help After the recent entry of three new GECs (9X, NDTV Imagine and Colors), Zee TV's ratings have been under tremendous pressure. The impressive launch and programming of Colors has resulted in it gaining the No.2 position from Zee TV. Zee TV's GRP share has declined from an average of 25.8% in Q4FY08 to 18.5% in Q2FY09. Zee TV has also lost out on share of the top 100 programs,
over the period.
Accumulate with a target of 140
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