PINC research has maintained buy rating on Garware Offshore with target price of Rs 300, in its April 28, 2008 report. "Garware Offshore Services Ltd’s (GOSL) Q4FY08 results were in line with expectations as net sales rose 21% to Rs234 million. However, net profits were below estimates as they grew by 9% to Rs 58 million. At the CMP of Rs 250, GOSL trades at a P/E of 8.1x and EV/EBITDA of 6.9x FY10 estimates. GOSL’s plans to expand its fleet size by 3 AHTSVs and 2 PSVs remains on track. It also plans to induct higher tonnage OSVs and a construction barge to expand its presence in the offshore value chain. GOSL has further plans to diversify its revenues to include commission and brokerage earned from inchartering as well as sale of vessel designs of Havyard. Such an aggressive expansion imparts considerable risk of slippage, which can significantly impact earnings potential. However, we are confident of the company achieving its targeted expansion and despite richer valuations, we maintain our ‘BUY’ recommendation with a 12- month price target of Rs 300" according to PINC 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.

For further details click on attachment......