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Buy Jyoti Structures; tgt of Rs 143: Anand Rathi Securities
Anand Rathi Securities is bullish on Jyoti Structures and has recommended buy rating on the stock with a target of Rs 143 in its February 1, 2011 research report.
Anand Rathi Securities is bullish on Jyoti Structures and has recommended buy rating on the stock with a target of Rs 143 in its February 1, 2011 research report.
"Jyoti Structures' revenue grew 7.7% yoy, to Rs 5.5 billion, 10.2% lower than our estimate mainly on account of deferred revenue booking on projects. EBITDA grew 5.9% yoy, to Rs 629 million. Net profit grew 5.7% yoy, to Rs 247 million, sharply lower than we expected. However, management has maintained its revenue guidance for FY11, at Rs 24 billion. The order book was Rs 41 billion, 2x FY10 sales. Orders in 3Q were Rs 4 billion (9MFY11: Rs 16.4 billion). We expect orders of Rs 8 billion in 4Q and an order book of Rs 43 billion by Mar'11."
"We lower our revenue forecasts 3.4%/ 6.2% for FY11/FY12 respectively owing to lower assumptions of execution rates and order inflows. We lower our earnings estimates 5.3%/9% for FY11/12 respectively on account of minor changes to net interest costs and taxation. At the current price, the stock trades at PE of 8.7x and PBV of 1.1x FY12 estimates. We maintain our Buy rating, with a target of Rs 143, based on 12x FY12e earnings. Key risks are rising commodity prices and interest costs and competition," says Anand Rathi Securities research report.
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