Broking house, P-Sec is bullish on Simplex Infrastructures and has recommended buy rating on the stock.
P-Sec report on Simplex Infrastructures:
"Simplex announced a 30% y-o-y growth in the topline and 21% y-o-y fall in the bottomline in Q2FY07. Increase in interest cost is the major reason which has hit the bottomline of the company. The company expects a good performance in Q3FY07 and Q4FY07 since majority of the revenues incur in these two quarters. The current order book of the company is Rs 56 billion. The average execution period of the order book is 2 years. Simplex has secured new contract at Qatar where they have to construct a 50 floor luxury residential tower the total project cost is Rs 825 crore. Foreign projects has been a major revenue contributor to the topline of the company. At a CMP of Rs 365 the stock is trading at a PE of 14.96 x FY08. We recommend a Buy on the stock at current level. "
