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Accumulate Sanghvi Movers; target of Rs 161: Asit C. Mehta
Asit C. Mehta is bullish on Sanghvi Movers (SML) and has recommended accumulate rating on the stock with a target of Rs 161 in its February 16, 2011 research report.
Asit C. Mehta is bullish on Sanghvi Movers (SML) and has recommended accumulate rating on the stock with a target of Rs 161 in its February 16, 2011 research report.
"Sanghvi Movers' (SML) revenue decreased by 2.4% YoY to Rs 807.9 million.Operating profit margin dipped by 350 bps to 72.1% and net profits decreased by 23.3% to Rs 160.6 million. SML's revenue decreased by 2.4% to Rs 807.9 million in Q3 FY11 vs Rs 827.7 million in Q3 FY10 on account of lower capacity utilization and lower yield. Operating margin dropped to 72.5% in Q3 FY11 vs 75.6% in Q3 FY10 on account of higher operating expense and other expenditure. Other income stood at Rs 13.8 million as SML sold 4 cranes and booked profit on the same. Depreciation increased to Rs 237.5 million in Q3 FY11 vs Rs 226.9 million in Q3 FY10, on account of new crane addition. Net profits decreased by 23.3% to Rs 160.6 million in the current quarter vs Rs 209.2 million in Q3 FY10 on account of drop in sales and lower operating margins."
"At CMP of Rs 146, SML is trading at 8.2x FY11E earnings and 7.2x FY12E earnings. Looking at forward P/E chart, we assign 8x and recommend a Accumulate with a price target of Rs 161," says Asit C. Mehta research report.
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