Accumulate Easun Reyrolle: Anagram

Anagram Research has recommended an accumulate rating on Easun Reyrolle in its August 23, 2008 research report. "Easun being one of the leading players in power management–power system protection, control and automation, would benefit from the investments in the power sector, especially transmission and distribution space. The company has a comfortable order book position. With the commissioning of the switchgear unit, we expect this segment to grow 100% by FY09, as well as its foray into other value adding spaces like power generation; we expect the company to post better revenues and enhanced profitability going forward. Company has announced capex of Rs 10-20 crore for next 2 years to mainly focus on IT in power sector."

"APDRP Phase 2, focusing on improved efficiencies and loss reduction through use of IT in power sector, is now approved-Providing significant opportunities to ERL. At CMP, stock trades at 7.2X FY09E and 4.4X FY10E earnings with an EPS of Rs. 14.42 and Rs. 23.40 respectively. The stock looks attractive from a medium–to-long-term perspective and hence we recommend Accumulate the stock," says Anagram's research report.

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