Sharekhan has recommended a buy rating on Sunil Hitech Engineers , with price target of Rs 295, in its report dated March 12, 2010. The stock closed at Rs 224.15 on March 12, 2010.
"Sunil Hitech Engineers has grown at an exponential rate of 103% over FY2007-09. In view of its strong order book, the huge opportunity in its chosen niche space and its initiatives to undertake large projects, we expect SHEL to double its net revenues and earnings over FY2009-12. The stock trades at a substantial discount to its peers and its current valuation leaves significant scope for re-rating. Moreover, we have not factored in any value from SHEL's 20% stake in the GangaKhed project and 49% stake in its joint venture for coalmines. Historically SHEL has traded at an average multiple of 8.1x its one-year forward earnings per share (EPS). We initiate coverage on SHEL with a Buy recommendation and a price target of Rs 295 (8x average EPS of FY2011 and FY2012)," says Sharekhan report.
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