Buy Omaxe, target Rs 744 : Finquest

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Finquest research has maintained buy rating on Omaxe with target price of Rs 744 in its January 09, 2008 research report. "Omaxe Limited is a real estate development and construction company with business spread across 30 cities of 9 states in India. The company has proven track record of delivering 120 projects aggregating 30 million sqft for third parties as civil contractors. This also proves the operational efficiency of the company and capability to deliver in future as well. Omaxe's main focus remains Tier II-III cities, which is obvious from the fact that 83% of its real estate revenues for FY2007 resulted from sale in these cities vis-a-vis 62% in FY2006. Omaxe's development projects range from integrated townships, group housing, commercial properties, hotels, IT and bio-tech parks to Special Economic Zone.  At CMP of Rs 547, the stock trades at a P/E of 11.4x FY2009E and 7.4x FY2010E and EV/EBIDTA of 9.1x FY2009E and 6.0x FY2010E. We Initiate Coverage on OMAXE with a price target of Rs 744. Our price target is at a 10% premium to our NAV estimates. Our NAV estimate is based on the discounted cash flows from the development schedule for the current landbank," according to Finquest research report.   

 

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