Accumulate Reliance Infra; target of Rs 734: P Lilladher

59066 Investors following Reliance Infra. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate Reliance Infra; target of Rs 734: P Lilladher

Prabhudas Lilladher is bullish on Reliance Infrastructure (RInfra) and has recommended accumulate rating on the stock with a target of Rs 734 in its May 30, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy IVRCL; target of Rs 100: Angel Broking Buy Anant Raj Ind; target of Rs 130: PINC Research Buy Sun TV Network; target of Rs 515: PINC Research ALSO READ See previous views by Prabhudas Lilladher See what other Experts & Brokerages are saying about Reliance Infra See messages about Reliance Infra Reliance Infra BSE | NSE 30/05/12 Are Mutual Funds betting on Reliance Infra?

Prabhudas Lilladher is bullish on Reliance Infrastructure (RInfra) and has recommended accumulate rating on the stock with a target of Rs 734 in its May 30, 2011 research report.

"Reliance Infrastructure (RInfra), in Q4FY11, has reported revenue de-growth of 12.5% YoY and 4.1% in FY11 at Rs24bn and Rs96bn, respectively. EPC division recorded 510bps YoY improvement in EBIT margins YoY in Q4FY11. However, sales were down by 23.3% for the same period. For FY11, income from distribution declined by 7% YoY and EPC business was flat. Volumes in Mumbai Distribution declined by 9.6% YoY in FY11 and the power purchased from third parties also came down by 20% YoY (on account of lower demand). However, number of customers have increased by 90000 in FY11. Tax has been negative in Q4FY11 on account of refunds pertaining to earlier years. Other income was down 35% YoY during the year. Hence, the standalone PAT de-grew by 6.2% YoY to Rs10.8bn.

Delhi Distribution clocked sales of Rs62bn, up 16.9% YoY and number of units also increased by 9.2% YoY to 13.3bn units. Revenue from WRSS and Delhi Metro segments started contributing marginally from Q4FY11 to the tune of Rs1.2bn. Number of units traded continued to increase and stood at 5.6bn units. Thus, total revenues stood at Rs154bn, growing by 3.7% YoY and PATAMI stood at Rs15.6bn, posting a growth of 2.1% YoY. EPC order book stands at Rs296bn, up 26% QoQ. RInfra has infused close to Rs33bn in various SPV's in FY11. The company is leasing out real estate at Delhi metro at rentals of around Rs730 sq/ft.

The stock of RInfrahas taken a hit in the last six months on account of various news. However, with new assets getting into operations in the next 12 months, the earnings on consolidated basis should be benefited. At CMP, the stock trades at 0.7x P/BV FY13E. We maintain 'Accumulate' on the stock," says Prabhudas Lilladher research report.

What stocks does Citi hold?

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.

To read the full report click on the attachment