Thursday 13 November 2008

Buy Sintex India, target of Rs 314: Hem Securities

Hem Securities is bullish on Sintex India and has recommended buy rating on the stock with a target of Rs 314, in its November 11, 2008 research report. “Sintex Industries’ consistent performance in both top line and bottom line, vig-orous growth in order book and it’s recent acquisitions show phenomenal growth in the company’s financials. Due to its ability to quickly deliver affordable housing projects, the company has secured a strong order book of Rs. 14 billion for monolithic construction which will be executed over 1-2 years. The company has got approval from 16 states for its prefab business which is the biggest entry barrier for any new entrant. So, the company is shifting its focus from textiles to plastic division to grab the growing opportunities and thereby continue on its growth trajectory. Therefore, the company’s revenue which is coming from 3-4 segments shall provide a hedge against cyclicality of its operations.”

“The stock at the current market price of Rs 218 will trade 11.24 times to its earnings of Rs 19.38 (TTM) and 1.97 times to its book value of Rs. 110.74 and is expected to provide huge upside potential in medium term. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 314 in the medium term investment horizon with an appreciation of approximately 44%,” says Hem Securities' research report.

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Source: Moneycontrol

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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.