ULJK Securities has initiated buy rating on Sunil Hitech Engineers with a price target of Rs 282 in its report dated February 25, 2010.
The Planning Commission has targeted 78700 MW of capacity addition by 2012 out of which around 60000 MW will be thermal power, which is the key area of operations of Sunil Hitech Engineers (SHEL). SHEL is moving up in the value chain and is capable and prequalified for executing BOP works on an individual basis. SHEL is now prequalified to bid for a 500 MW BOP project. SHEL enjoys a strong order book of about Rs. 2062 cr, which leads to a revenue visibility for next three years. SHEL has a good track record in project execution. SHEL having good execution capabilities and a robust order book, we see the stock has a potential upside with a very low downside risk at its current price of Rs 198. We have initiated a coverage on SHEL with a BUY recommendation for a target price of Rs 282, "says ULJK Securities research report.
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