Bharati Shipyard has target of Rs 300: Mukadam

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Bharati Shipyard has target of Rs 300, says Shahina Mukadam , Varun Capital Markets.

Mukadam told CNBC-TV18, "The way Bharati Shipyard is picking up stake in Great Offshore they would land up with 51% equity very soon. Just last week their equity has increased to about 48%. When Bharati shipyard is able to reflect its investment in Great Offshore onto its books, I think the numbers will really change for the better that should happen in the medium term."

She further added, "At the same time, I think the business prospects of Bharati are likely to improve much more going forward considering that their investments in its two new facilities at Ratnagiri and Mangalore are due for completion in the next couple of months. Also its new rig that it is suppose to supply to Great Offshore is likely to be delivered over the next couple of months, so all these things should augur very well for the company. Valuation wise if you look at one year forward it is very cheap just about 2-3 times earnings one year forward, which makes it a very good medium to longer term play. Buy Bharati Shipyard. The target is Rs 300."

At 12:14 hrs the share was quoting at Rs 268.75, up Rs 4.95, or 1.88% with volumes of 345,972 shares.

The company touched its 52 week high Rs 352.80 and 52 week low Rs 52.60 on 15 Jan, 2010 and 19 Mar, 2009, respectively. Currently, it is trading -23.82% below its 52-week high and 410.93% above its 52-week low. Market capitalisation stands at Rs 740.92 crore.