Friday 7 November 2008

Buy Praj Industries, target of Rs 100: Karvy

Karvy Stock Broking has maintained its buy rating on Praj Industries with a target price of Rs 100 in its November 7, 2008 research report. "For Q2FY09 (standalone), Praj reported the revenue increase of 17.6% YoY (QoQ increase of 29.4%) to Rs 2 billion. The revenue was 19% lower than our expectations of Rs 1.67 billion. The company has current order book of Rs 9.5 billion. We expect the consolidated profit to increase at a CAGR of 17.3 % over next two years to Rs 1.83 billion in FY10. At current market price of Rs 72, the stock is trading at 8.4xFY09 and 7xFY10 earnings and EV/EBIDTA it is trading at 4.3xFY09. We maintain our valuation at 10xFY10 in line with de-rating in equity market with target price of Rs 100. We maintain BUY," says Karvy's research report.

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Source: Moneycontrol

Posted by Harsh at 07:40

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