Accumulate Gammon India, tgt Rs 415: Religare

Religare research has maintained accumulate rating on Gammon India with target price of Rs 415, in its July 03, 2008 report. "The order book of the company stood at Rs 75 bn as against Rs 74 bn as on December 2007 and Rs 76 billionn as on March 2007. Apart from this, the company has an L1 status for Rs 18 bn worth of orders.  At the CMP of Rs 223, the stock trades at a P/E of 15.9x FY09E diluted earnings. After adjusting for the value of GIPL (Rs 146), Associated Transrail (Rs39), and Sadbhav Engineering (Rs 9), the stock trades at 2.1x FY09E diluted earnings. We are downgrading our 1 year forward target price to Rs415 from Rs630 mainly due to a downgrade in our earnings estimates. We maintain our Accumulate rating on the stock" according to Religare report.  

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