Buy Arshiya Intl, target of Rs 342: India Capital Markets

RELATED NEWS Buy Suzlon Energy, target of Rs 194: Nirmal Bang Buy DLF, target of Rs 330: Emkay Global Buy IRB Infra, target of Rs 137: Emkay Global Buy Jyoti Structures: SKP Securities Sell Titan Industries below Rs 953: ICICIdirect.com ALSO READ See previous views by India Capital Markets See what other Experts & Brokerages are saying about IID Forgings Lt See messages about IID Forgings Lt Arshiya Intl BSE | NSE 10/02/12 Are Mutual Funds betting on Arshiya Intl?

India Capital Markets has maintained its buy rating on Arshiya International with a target of Rs 342 in its November 5, 2008 research report. "Arshiya International has reported a consolidated revenue of Rs 1.46 billion in Q2FY09, up by 63% on yoy basis and 4% on qoq basis. Arshiya has reported 133% growth in net profit after minority interest on yoy basis to Rs 192 million."

"In our view, Arshiya's scale of operations & increasing its asset base can provide competitive advantages, both in terms of services reliability and cost. FTWZs & rail container operations will improve the visibility of the business. We have a concern with a decline in EXIM trade and increasing global growth uncertainty that may challenge our estimates. We maintain our earnings estimates and expect Arshiya to report consolidated revenues of Rs 6.33 billion in FY09E & Rs 12.19 billion in FY10E. At current market price, stock is trading at 10.2x FY09E and 4.7x FY10E earnings. We remain positive on the stock with a target price of Rs 342,Buy," says India Capital Markets' research report.

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......