Buy OM Metals Infra; target Rs 25: Firstcall Research
Firstcall Research is bullish on OM Metals Infraprojects and has recommended buy rating on the stock with a target price of Rs 25 in its March 01, 2013 research report.
March 04, 2013 / 12:50 IST
Firstcall Research is bullish on OM Metals Infraprojects and has recommended buy rating on the stock with a target price of Rs 25 in its March 01, 2013 research report.
"OM Metals Infraprojects is in the field of execution, design, detailed engineering, manufacture, supply, installation, testing & commissioning of complete range of hydro mechanical equipments. During the first quarter ended the robust growth in the Net Profit of the company & rose by 20.63% to Rs. 53.03 million. Om Metals Developers Pvt Ltd (OMDPL), a 100% subsidiary of Om Metals Infraprojects Ltd, with Mahindra Lifespaces has entered into a developer-owner collaboration agreement and has launched “Ashvita” a premium residential project at Kukatpally, Hyderabad. OM Metals Infraprojects Ltd has bagged hydromechanical orders worth Rs. 405.00 millions from Bharat Heavy Electricals (BHEL) and Moser Baer Power Madhya Pradesh (MBPIL). OM Metals Infraprojects has successfully completed installation & commissioning of three radial gates at Chamera III hydro-electric project. The construction contract of Jaipur Hi-end Luxury Residential Project with M/s Shapoor ji Palonji is under speedy execution. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 13% over 2011 to 2014E respectively.The company’s net profit jumps to Rs.53.03 million against Rs.43.96 million in the corresponding quarter ending of previous year, an increase of 20.63%. Revenue for the quarter increase 77.13% to Rs.910.61 million from Rs.514.08 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.0.55 a share during the quarter, registering 20.63% increase over previous year period. Profit before interest, depreciation and tax is Rs.142.93 millions as against Rs.156.11 millions in the corresponding period of the previous year.Outlook and Conclusion: At the current market price of Rs.20.00, the stock P/E ratio is at 6.33 x FY13E and 4.62 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.3.16 and Rs.4.33 respectively. On the basis of EV/EBITDA, the stock trades at 4.64 x for FY13E and 3.81 x for FY14E. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 13% over 2011 to 2014E respectively. Price to Book Value of the stock is expected to be at 0.42 x and 0.39 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 25 for Medium to Long term investment," says Firstcall Research report.Institutional holding more than 40% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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 
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