Moneycontrol
Feb 16, 2017 06:14 PM IST | Source: Moneycontrol.com

Hold Dredging Corporation; target of Rs 480: ICICI Direct

ICICI Direct recommended hold rating on Dredging Corporation with a target price of Rs 480 in its research report dated February 14, 2017.

Hold Dredging Corporation; target of Rs 480: ICICI Direct


ICICI Direct's research report on Dredging Corporation


Revenues de-grew 6% YoY (down 6% QoQ) to Rs 151.9 crore (I-direct estimate: Rs 164.6 crore). Other operating income continued to remain high at Rs 12.5 crore compared a negligible amount in Q3FY16. Revenues for the quarter were adversely impacted by dry dock (repairs), which were, to an extent, guarded by improved realization.


Outlook


These very large opportunities would require acceleration of government investments. With the revival in revenue visibility we upgrade our assigned multiple to 12x (10x earlier) with implied P/BV of 0.7x maintaining HOLD with revised TP of Rs 480 (vs. Rs 400 earlier). We believe execution would remain crucial for revision in our earnings estimates.

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