IIFL has recommended buy rating on Nagarjuna Construction, with 12-month price target of Rs 210, in its report dated 1 August, 2008."1QFY09 revenue grew 27.4% YoY to Rs 9.71 billion, marginally ahead of our estimate of Rs 9.53 billion. Nagarjuna Construction reported strong growth in revenue. However, a sharp 64% increase in interest costs combined with 98 bps contraction in EBITDA margin restricted net profit growth to 3% YoY. We revise our interest cost estimates upwards. This translates to downward revisions in our earnings estimate, for FY09 by 9% and for FY10 by 9.6%”.

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