Tuesday 4 November 2008

Buy Shiv Vani Oil, target of Rs 607: HDFC Sec

HDFC Securities has maintained its buy rating on Shiv Vani Oil & Gas Exploration Services with a target of Rs 607 in its November 4, 2008 research report. "It reported a Net Sales of Rs 1876 million (divergence of -5.3%), higher by 92% yoy and lower by 1% qoq. PAT was Rs 476 million (divergence of +14.1%) higher by 141% yoy and 31% on qoq basis."

"Shiv-Vani Oil is the largest private onshore oil field service provider in India. It has a strong order book position of Rs 48 billion that is 4.8 (x) its FY09E turnover, providing clear visibility of its future revenues. We expect the revenues and profits of the company to grow at a CAGR of 62% and 62% from FY08 to FY10E. At the CMP of Rs 307 it is trading at 8.6x and 5.4x its FY09E and FY10E FDEPS. We have revised our DCF based target price from Rs 744 earlier to Rs 607 (upside of 102% from current levels). We maintain our BUY rating on the stock," says HDFC Securities' research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

No comments:

Post a Comment

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.