Tuesday, 18 November 2008

Buy Thermax at declines: Asit C. Mehta

Asit C. Mehta has recommended to buy Thermax at declines with a target of Rs 280 in its November 18, 2008 research report. "Looking forward we expect the revenues to register a CAGR of 19% during FY08-10E with earnings growth of 15% during the same period. However, we remain cautious and expect the sluggishness in the economy to continue. In view of these factors, we believe that valuing the company on a book value basis would be the most appropriate valuation in the current market conditions. Therefore, we assign a Price/Book Value multiple of 2.5 to the FY10 book value of Rs 111.1 and arrive at a target price of Rs 280. At a current market price of Rs 229 we reinitiate coverage on Thermax Ltd with an “BUY AT DECLINES” recommendation for a target price of Rs 280," says Asit C. Mehta's research report.

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Source: Moneycontrol

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