6758 Investors following Kalindee Rail. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Kalindee Rail Nirman; tgt Rs 163: Emkay Global
Emkay Global Financial Services has recommended a buy rating on Kalindee Rail Nirman, with price target of Rs 163. Kalindee Rail Nirman’s reported revenue growth of 100% in Q2FY09 to Rs 878 million, ahead of estimates of Rs 731 million.
Emkay Global Financial Services has recommended a buy rating on Kalindee Rail Nirman , with price target of Rs 163, in its reports dated November 5, 2008. "Kalindee Rail Nirman's (KRNL) reported revenue growth of 100% in Q2FY09 to Rs 878 million, ahead of our estimates of Rs 731 million. PAT increased by only 9.5% to Rs 32 million, which was lower than our expectation of Rs 39 million. EPS for the quarter stood at Rs 2.5 as against Rs 2.3 previous year. Company's order book as of now stands at approximately Rs 4.5 billion however company expects orders worth Rs 3-4 billion in next 6 months."
"To factor current economic slow down, risk of delays in upcoming projects along with rising interest cost, we are downgrading our earnings estimates for the company by 24.2% and 33% for FY09E and FY10E, respectively. We are also cutting target multiple from 8x to 6x inline with shrinkage in PE multiple of other infrastructure companies. Resultantly we are downgrading our price target from Rs 324 to Rs 163 and maintain BUY recommendation on the stock considering 46% upside from current level," says Emkay Global Financial Services' 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......
