Buy Punj Lloyd at Rs 175-180, says Suhas Samant, Head PMS, Sharekhan.

Samant told CNBC-TV18, "Punj Lloyd has been terribly disappointed results for Q2. They have been substantially down on the expectations for the revenues, which have been down by 1.7% on the consolidated levels. But at the same time on standalone, they have not performed well. Margins have substantially declined and because of the delays and cost overruns in the UK projects as well as the retrenchment in the employment cost, which has gone up by 16%, so we are downgraded on Punj Lloyd. At these levels it will be a good buy somewhere around Rs 175 to 180 levels but our target price has been downgraded from Rs 294 to Rs 229.”

Disclosure: Personally I am not holding the above stock but we are recommending to our clients.