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Buy Lloyd Electric with target of Rs 142: Emkay
Emkay Research has recommended a buy rating on Lloyd Electric with a target price of Rs 142. At the CMP of Rs 98, the scrip trades at 4.5xFY09E and 3.3xFY10E earnings respectively, which is at a discount to its peers.
Emkay Research has recommended a buy rating on Lloyd Electric with a target price of Rs 142 in its June 20, 2008 research report. "Lloyd Electric and Engineering Ltd (LEEL), the market leader in the domestic AC coil segment, is likely to continue its upward march over the next few years. A buoyant demand scenario for the AC coil segment combined with LEEL's foray into the AC contract manufacturing segment has helped boost its earnings. LEEL, which was traditionally an AC coil manufacturer, ventured into contract manufacturing of ACs, AC equipment for metro rails, etc three years back."
"LEEL is planning to invest Rs 200-300 mn per annum for the next three years in order to expand its production capacity. Given the strong growth prospects for LEEL, we expect the standalone revenues, EBITDA and PAT to grow at a CAGR of 27%, 30% and 33.2% respectively during FY08A- 10E. At the CMP of Rs 98, the scrip trades at 4.5xFY09E and 3.3xFY10E earnings respectively, which is at a discount to its peers. We initiate coverage on the stock with a BUY rating and a price target of Rs 142." According to Emkay Research report.
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