Tuesday 11 November 2008

Reduce Bharati Shipyard: Emkay Global

Emkay Global Financial Services has recommended a reduce rating on Bharati Shipyard in its report dated November 3, 2008. "Bharati Shipyard (BSL) reported below expected results in Q2FY09 revenue up 44% yoy to Rs 2.1 billion, operating margins decline 170 bps yoy to 19.6% and net profit grew 29% yoy to Rs 332 million. Management has clarified that FCCB worth Rs2.2 bn (USD 33.1 million) are due for conversion by December 2010 versus Media speculation of December 2008. This addresses the key overhang and investor concern on the company. We will fine tune our earnings estimates for FY09E and FY10E to factor the delays in Dabhol and Mangalore Expansion and higher than expected slowdown in incremental order inflows. Post our initiating coverage with ‘REDUCE’ rating, BSL has corrected by 88%. We will review our ‘REDUCE’ rating amidst sharp decline in stock price," says Emkay Global Financial Services' 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

Posted by Harsh at 07:39

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
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.