Wednesday 15 October 2008

Buy Indo Tech Transformers, target of Rs 280: PINC

PINC Research has recommended a buy rating on Indo Tech Transformers with a target of Rs 280 in its October 14, 2008 research report. "Indo Tech Transformers Ltd�s (Indo Tech) Q2FY09 results were above expectations. Net sales rose by 27% YoY to Rs 654 million and net profits by 39% to Rs 14 million."

"The CMP of Rs 220 discounts FY09E EPS of Rs 41.7 by 5.3x. The stock trades at an EV/Sales of 0.7x and EV/EBIDTA of 2.9x FY09 estimates. While industrial and export orders are helping boost margins, we expect the same to contract as competitive pressures increase in both SEB and industrial segments. Despite the above, margins should remain healthy and a higher share of industrial orders should help improve turnaround of orders. We recommend a �BUY� with a 12-month price target of Rs 280," says PINC's research report.

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Source: Moneycontrol

Posted by Harsh at 17:11

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