Buy HBL Power Systems, target of Rs 430: Hem

Hem Securities has initiated a buy rating on HBL Power Systems with a target price of Rs 430 in its August 13, 2008 research report. "The company has posted excellent results for the first quarter of FY09 by registering phenomenal growth across all the parameters. The Net Sales have grown massively by 127% over the last 4 quarters to Rs 3164.30 million in Q1FY09 against Rs 1389.60 million clocked in Q1FY08, at the same time the expenditures grew slower at 107.49 % leading to significant increase in the Operating Profit."

"Presently, the stock is trading at Rs 305 which is at 7.61 times to its earnings and 2.18 times to its book value of Rs 140.16. Since the stock seems to offers extremely good investment opportunities, we initiate a ‘BUY’ signal on the stock with a target price of Rs 430 in medium to long term investment horizon expecting an appreciation of about 41% from the current level of Rs 305," says Hem's research report.

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