Thursday, 6 November 2008

Buy Puravankara Projects, target of Rs 77: PINC Research

PINC Research has maintained buy rating on Puravankara Projects with a price target of Rs 77 in its November 5, 2008 research report. "The company's sales were flat at Rs 1.4 billion in Q2FY09. OPM shrank 709bps to 34.5% owing to higher selling costs at Rs 82 million (+63%YoY), higher admin. expenses and staff costs. Consequently net profit was down 16% to Rs 505 million. We would assign a discount of 50% to our NAV estimate citing deteriorating property markets and hence arrive at a value of Rs 77/sh. At the CMP of Rs 54, PPL is trading at a 30% discount to our estimated value of Rs77/sh. We maintain a ‘Buy’ recommendation with a price target of Rs 77 (a potential upside of 43%)," according to research report.

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Source: Moneycontrol

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