Friday, 7 November 2008

Buy Ballarpur Industries; target Rs 37: Emkay Global

Emkay Global Financial Services has recommended a buy rating on Ballarpur Industries, with price target of Rs 37, in its reports dated November 4, 2008. "Ballarpur Industries (BILT) on consolidated basis reported 17.3% growth in revenues and 34.9% growth in EPS in Q1FY09, which was broadly inline with our expectations. However results are not strictly comparable on YoY basis due to financial and business restructuring done by the company during the year. Company reported net revenues of Rs 7.7 billion (+ 17.3% YoY), driven by 3.8% volume growth and 13% realization growth. PAT (after minority interest) declined by 9% YoY to Rs 673 million. However EPS increased by 34.9% to Rs 1.1 due to recent financial and business restructuring. We are downgrading our price target from Rs 45 to Rs 37 based on 10% discount (historical last five year average) of FY09 estimated book value of Rs 41. However given 68% upside from current level, we maintain our BUY recommendation," says Emkay Global Financial Services' report.

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Source: Moneycontrol

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