Firstcall Research is bullish on Pratibha Industries and has recommended buy rating on the stock with a target of Rs 60 in its December 24, 2012 research report.
“Pratibha Industries Ltd (PIL), the flagship company of the Pratibha Group is dedicated and committed to providing the society at large with quality infrastructure in its field of expertise which currently include design, engineering and execution/construction of complex & integrated water transmission & distribution projects, water treatment plants, elevated and underground reservoirs, mass housing projects, commercial complexes, pre-cast design & construction, road construction and real estate. The company which started with pre-cast products in just over two decades has created a technical niche for itself graduating into a multifunctional construction and infrastructure development company of repute with annual turnover of INR 8060 million.”
“Company’s rapid and consistent growth over the years bear testimony to its focus on dedication, quality of production and services through continuously evolving technologies along with timely execution of projects which has won it accolades and repeated business from their clientele. The Company is having a wholly owned subsidiary Company i.e. Pratibha Infrastructure Private Limited (PIPL). In 2009, the company has set up its PPP Division (Public Private Partnership). The Public-Private Partnership (PPP) Project would be a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.”
“Pratibha Industries Ltd, together with its subsidiary, Pratibha Infrastructure Private Ltd, operates as a construction and infrastructure development company in India, reported its financial results for the quarter ended 30th Sep, 2012. The second quarter witnesses a healthy increase in overall sales as well as profitability on account of a healthy growth in execution of its construction projects and start of revenue recognition in its large sized projects. The company’s net profit jumps to Rs.213.29 million against Rs.163.35 million in the corresponding quarter ending of previous year, an increase of 30.57%. Revenue for the quarter rose 31.23% to Rs.4433.67 million from Rs.3378.50 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.2.11 a share during the quarter, registering 28.47% increase over previous year period. Profit before interest, depreciation and tax is Rs.719.36 millions as against Rs.461.54 millions in the corresponding period of the previous year.”
“At the current market price of Rs 52, the stock P/E ratio is at 5.50 x FY13E and 4.92 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.9.46 and Rs.10.57 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 24% and 14% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.06 x for FY13E and 3.41 x for FY14E. Price to Book Value of the stock is expected to be at 0.82 x and 0.71 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 60 for medium to long term investment,” says Firstcall Research report.
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