Sunday 2 November 2008

Buy HEG, target of Rs 319: SKP Securities

SKP Securities has maintained its buy rating on HEG with a target price of Rs 319 in its October 31, 2008 research report. "Net sales were up 14.61% for Q2FY09 at Rs 295.39 crores. At the current level of Rs 135.25 and excluding the investment value ,HEGL is trading at 2.74 x FY09E earnings and 1.74 x FY10E earnings of Rs. 35.90 and Rs 56.58 respectively. We have valued the core business of the company at 5 x FY10E earnings, taking value of the stock to Rs 282.91 per share. The value of the company is further increased by Rs 37 per share by discounting HEGL's investment value in Bhilwara Energy Ltd. by 50%. We maintain our BUY recommendation on the stock with a target price of Rs 319 per share, upside potential of 137%," says SKP Securities' research report.

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Source: Moneycontrol

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