Buy BGR Energy; target of Rs 625: Hem Securities

ALSO READ See previous views by Hem Securities See what other Experts & Brokerages are saying about BGR Energy See messages about BGR Energy BGR Energy BSE | NSE 10/02/12 Are Mutual Funds betting on BGR Energy?

Hem Securities is bullish on BGR Energy Systems and has recommended buy rating on the stock with a target of Rs 625, in its March 10, 2010 research report.

"Increasing GoI thrust on power sector via plan allocation for power sector doubling under Budget 2010-2011, BGR Energy Systems' unique position as a singlepackage BOP/EPC solution provider, robust order book and an edge of cost advantage over its peer competitors are the key growth drivers for the company going forward. Enhancement of manufacturing capabilities and expansion of product range and strong revenue visibility will add value to the company. In the wake of such growth, BGR Energy Systems seems to be extremely attractive investment opportunity."

"Presently, the stock is trading at Rs 508 (price on 9/3/2010) which is at 26.19 times to its TTM earnings and 6.49 times to its book value of Rs 78.32. Since the stock offers good opportunity, we initiate a 'BUY' signal on the stock with a target price of Rs 625.00 in short to medium term investment horizon expecting an appreciation of about 23% from the current level of Rs 508," says Hem Securities 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