Motilal Oswal has maintained a buy rating on Simplex Infra, with target of Rs 600, in its report dated November 4, 2009. The stock closed at Rs 518.30 on November 9, 2009.

"Order book for Simplex stands at Rs 105 billion (down 1.5%YoY, up 5%QoQ), and is largely stagnant for past 6 quarters. Power segment contributed 61% of order intake in 1QFY10 and ~47% in 2QFY10. While the order intake during 2QFY10 has been moderate, bids submitted pipeline stands at Rs 390 billion (up 30% YoY, up 20% QoQ) indicating improved environment as compared to past 2-3 quarters. Management guidance lowered (for revenues): Revenue growth is expected to be 10% in FY10, vs initial expectation of 15-20%; EBITDA margins of 10-10.5%. Maintain buy with a price target of Rs 600/sh (based on 14x FY11 earnings)," says Motilal Oswal report.

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