Thursday, 6 November 2008

Buy Great Offshore; target Rs 536: HDFC Securities

HDFC Securities has recommended a buy rating on Great Offshore, with price target of Rs 536, in its report dated November 5, 2008. "Great Offshore is growing with aggressive fleet addition and diversification into newer segments rather than depending on older assets alone. We expect the overall CAGR growth in the next three years to be 27% in revenue and 11% in profits. At the CMP of Rs 340, the stock trades at 5.7x and 4.5x its FY10E and FY11E earnings of Rs 60 and Rs 75. We have arrived at a DCF based target price of Rs 536, an upside of 57% from current levels. While our bear case target price is Rs 377 (upside of 10%), the bull case target price is Rs 704 (upside of 107%) from current levels. We initiate coverage with a Buy rating on the company," says HDFC Securities' report.

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Source: Moneycontrol

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