Monday, 24 November 2008

Buy Shanthi Gears, target of Rs 56: LKP Shares

LKP Shares has recommended a buy rating on Shanthi Gears with an one-year price target of Rs 56 in its research report. "H1FY'09 results of SGL were below expectations on the revenue front clearly reflecting the slowdown in core sector demand during the second quarter. However SGL has been able to maintain profitability due to reduction in material costs and better product mix towards customized gears. Given the strong balance sheet and virtually debt-free status we believe that SGL trading at 6xFY'10E is a good investment bet and we recommend a BUY with a one-year price target of Rs 56," says LKP Shares' research report.

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Source: Moneycontrol

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