FEW INVESTMENT IDEAS

1. WHIRLPOOL: CMP 263 TARGET 337 FOR 12 MONTHS
At the CMP of Rs. 263, it is trading at 17x its FY11E EPS of
Rs 15.40 and 12.89x its FY12E EPS of 20.40. We value the stock at 18x its FY12 earnings to arrive at a target price of Rs. 337, which represents an upside of 28%. We thus recommend a BUY

Fiscal Year Ending 3/09 3/10 3/11E 3/12E
Revenue (Rs.mn) 18,615 24,421 30,566 36,842
EBITDA (%) 2.9 6.0 6.8 7.7
PAT (%) 3.8 6.0 6.4 7.0
EPS (Rs.) 5.6 11.5 15.4 20.4
EPS Growth (%) (3.9) 106.2 34.7 31.9
P/E (x) 47.1 22.9 17.0 12.9
P/B (x) 11.9 9.4 7.2 5.4
EV/EBITDA(x) 61.5 22.1 15.5 11.1
ROCE (%) 21.7 49.2 61.2 62.9
ROE (%) 27.5 44.0 46.5 46.9
Dividend Yeild (%) 0 0 0.4

2. TRANSFORMER & RECTIFIER: CMP 437 TARGET 590 12 MONTHS

At the CMP of Rs. 436, TRIL is trading at 8.9x its FY11E EPS of
Rs 48.90. We value the stock at 12x its FY11 earnings to arrive at a target price of
Rs. 588, which represents an upside of 35%. We thus recommend a BUY

3. VST TILLERS: CMP 508 TARGET 690 AND 838

All figs in Rs mn FY 2008 FY 2009 FY 2010 FY 2011 FY 12E
Net sales 1886 2741 3445 3873 4404
EBITDA 229 427 623 697 837
EBITDA margins(%) 12.1% 15.6% 18.1% 18.0% 19.0%
PAT 144 289 423 497 601
EPS (Rs) 24.8 49.8 49.2 57.7 69.9
P/E(x) 13.4 7.3 7.7 6.6 5.5
EV/EBITDA(x) 9.7 5.2 5.4 4.4 3

At the CMP VST is trading at 8.80 its FY11E earning. We value the stock at 12x its FY11 earnings to arrive at target of 690 and 12x its FY12E earnings to arrive at the target of 838.

4. VIP IND : CMP RS. 370 BUY VIP FOR A SHORT TERM TARGET OF 488.00 (ONE MONTH) AND LONG TERM TARGETS OF 568, 688 AND 882. (1-2 YEARS)

5. SHILPA MEDICARE: CMP RS. 315 BUY SHILPA MEDICARE FOR A SHORT TERM TARGET OF RS. 380-Rs. 420 (2-3 MONTHS)