GVK Power has target of Rs 54: Pankaj Pandey

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Pankaj Pandey See what other Experts & Brokerages are saying about GVK Power See messages about GVK Power GVK Power BSE | NSE 13/02/12 Are Mutual Funds betting on GVK Power?

GVK Power has target of Rs 54, says Pankaj Pandey , Head Research, ICICI Direct.

Pandey told CNBC-TV18, "With the kind of quarterly results what we have seen GVK Power is doing pretty well in terms of its overall business segments and in terms of EBITDA margin, in terms of topline growth especially in the power segment the company has an operating capacity of 901 mega watt. Earlier they were struggling in their power segment. Now that segment has come up pretty well. We are expecting out of this 901 mega watt about 138 mega watt to be sold under the merchant power route, so in terms of overall numbers going forward we are expecting from FY09 to FY11 about 4.3 times jump in topline and about 2.7 times jump in profitability."

He further added, "In terms of airport numbers we are seeing a good amount of growth especially the fact that FY09 we have seen a 9% de-growth in terms of passenger traffic and in this particular quarter we are seeing about 9% growth. In terms of airport also the cost realization the company could be saving to the tune of about Rs 7 crore a quarter when they shift to Tata Power . So we are quite positive on the stock and we have a target price of about Rs 54 on the counter."

Disclosure: It is safe to assume that analyst and his clients  could be holding positions into the above stock.