Thursday 6 November 2008

Hold Consolidated Const: PINC Research

PINC Research has downgraded Consolidated Construction Consortium to hold rating in its November 5, 2008 research report. "The company posted net sales of Rs 4.7 billion (+21.9% YoY). OPM for the quarter dipped to 6.8% (down 189bps YoY). Net profits stood at Rs 191 million (down 36.9% YoY). At the CMP of Rs 300, CCCL trades at a P/E of 6.3x and EV/EBIDT of 4.8x its FY10E earnings. The overall economic slowdown impacted CCCL’s project execution in Q2FY09 owing to delays by its commercial & industrial clients. We believe such delays to persist & impact its performance over the next 8-10 months. Hence, we downgrade our earnings estimates by 15% in FY09 & 20% in FY10. Though the stock has undergone a steep correction over the past couple of months, it appears fairly valued at the current levels vis-a-vis our DCF valuation. Thus, we downgrade our recommendation to ‘Hold’." According to research report.

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Source: Moneycontrol

Posted by Harsh at 08:17

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