Buy Unity Infra: target of Rs 605: India Capital Markets

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India Capital Markets has recommended buy rating on Unity Infraprojects with a price target of Rs 605, in its November 24, 2009 reports.

"Unity Infraprojects has a robust order book position of Rs 40.4 bn, executable over the period of 28-30 months translating into 3.57x its FY09 revenues. As on Sept'09, of the total order book, the share of Civil Construction stands at 73%, Irrigation at 14% & Transportation at 13%. The order intake during Q2FY10 has been robust at Rs 14.50 bn, providing strong income visibility for next 3 years."

"Unity Infraprojects is all set to deliver a topline CAGR growth of 28% and a bottomline CAGR growth of 25% over FY2009-11E.Thus, at the CMP of Rs 484, UIL is trading at a 7.3x and 5.5x P/E multiples with EPS of Rs 66.4 and Rs 88.6 for FY10E & FY11E respectively. We recommend a "BUY" with a price target of Rs 605, over a one year time frame, providing an upside of 25% from current levels, "says India Capital Markets research report.

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