9067 Investors following Orbit Corporation. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Orbit Corporation, tgt Rs 1060: Sharekhan
Sharekhan research report has maintained buy rating on Orbit Corporation with target price of Rs 1060. We believe Orbit will exploit the massive redevelopment opportunities in Mumbai based on its focused business model and ability to convert a large number of projects in a short span of time.
Sharekhan research report has maintained buy rating on Orbit Corporation with target price of Rs 1060 in its December 17, 2007 report. "Generally, real estate companies are valued using the net asset value (NAV) method. However, for Orbit, we prefer the price/earnings (P/E) multiple approach, primarily because Orbit has a unique business model that is focused on redevelopment projects. Furthermore, we believe Orbit will exploit the massive redevelopment opportunities in Mumbai based on its focused business model and ability to convert a large number of projects in a short span of time. We expect Orbit 's revenues and net profit to grow at CAGR of 89.2% and 99.3% respectively over the period FY2007- 10. At the current market price of Rs800, the stock trades at P/E multiples of 14.8x and 10.4x based on the FY2008 and FY2009 earnings per share (EPS) estimates respectively. We recommend a Buy call on the stock with a price target of Rs1,060," according to Sharekhan 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 decision.
