Buy Tecpro Systems; target of Rs 322: Nirmal Bang

2584 Investors following Tecpro Systems. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Tecpro Systems; target of Rs 322: Nirmal Bang

Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 322 in its August 22, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate VST Tillers; target of Rs 592: Sushil Finance Accumulate Anant Raj; target of Rs 84: Prabhudas Lilladher Buy Deepak Fert; target of Rs 190: KRChoksey ALSO READ See previous views by Nirmal Bang See what other Experts & Brokerages are saying about Tecpro Systems See messages about Tecpro Systems Tecpro Systems BSE | NSE 29/05/12 Are Mutual Funds betting on Tecpro Systems?

Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 322 in its August 22, 2011 research report.

"Tecpro Systems delivered first quarter FY12 results in line with our expectations. Management seems to be confident on achieving a growth of 35-40% in top-line and 35% growth in order intake for the year. However, we are cautious since the order book inflow was quite low during the first quarter. The performance of the stock would depend on healthy intake of orders in the coming quarters."

"The company's revenues grew by 40% YoY at Rs.349.75 crore in Q1FY12 against Rs.250.2 crore in Q1FY11. Total expenditure for the quarter stood at Rs.311.09crore as compared to Rs. 232.92crore in corresponding quarter last year, up by 33. 6%. EBIDTA margins reported were 11.82% as compared to 7.88% in previous year's corresponding quarter, which shows an improvement of 3.94% YOY, resulting from increase in sales growth and improved operational efficiency. Profits stood at Rs.5.38crore, a rise of whopping 275% YoY. EPS reported was Rs.1.07 per share, which is up by 234.48% YOY. Order book inflow during the quarter was Rs.210crore taking the order backlog to Rs.4222crore. Material Handling segment contributed 45%, Ash Handling 8% and BOP contributed 47% of the order book."
 
"Over the past few years, the company has grown at a phenomenal pace along with entry into the booming BOP-EPC space. Current order book of Rs. 4222 Crs gives revenue visibility for next 2-3 years. In addition, tie up with the US firm AC-Tek for overland conveyor projects and foray into water treatment projects provides diversification to the company. Considering the overall macro sentiment we are assigning a Target PE multiple of 10x (earlier 11x) to the stock and arrive at a new price target of Rs 322 (earlier Rs.354). At CMP, the stock is trading 8 x the EPS of Rs 32.2 of FY12E and we reiterate BUY rating on the stock," says Nirmal Bang research report.

Shares held by Central Governments/State Governments

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment