Buy Selan Exploration; target Rs 339: Firstcall Research
Firstcall Research is bullish on Selan Exploration Technology and has recommended buy rating on the stock with a target price of Rs 339 in its February 20, 2013 research report.
February 21, 2013 / 14:01 IST
Firstcall Research is bullish on Selan Exploration Technology and has recommended buy rating on the stock with a target price of Rs 339 in its February 20, 2013 research report.
"Selan Exploration Technology is a private sector listed company, incorporated in 1985, engaged in oil-gas exploration & production. Selan Exploration Technology Ltd announced sharp growth of 15.14% in its net profit to Rs 120.90 million for the quarter ended Dec. 31, 2012 as compared to Rs 105.00 million in the same period last year. During the quarter, Revenue for the company rose 2.54% to Rs.246.00 millions from Rs.239.90 millions, when compared with the prior year period. Selan Exploration Technology Ltd has declared an Interim Dividend of 50% (i.e. Rs. 5.00/- per equity shares) for the financial year 2012-13. The Company has laid down diverse growth and expansion plans for its oil and gas fields; which shall lead to higher production of crude oil / gas. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 21% over 2011 to 2014E respectively.The company’s net profit rose to Rs. 120.90 million against Rs. 105.00 million in the corresponding quarter ending of previous year, and increase of 15.14%. Revenue for the quarter rose 2.54% to Rs. 246.00 million from Rs. 239.90 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.7.18 a share during the quarter, registering 16.17% increase over previous year period. Profit before interest, depreciation and tax is Rs. 180.60 millions as against Rs.151.30 millions in the corresponding period of the previous year.At the current market price of Rs.303.00, the stock P/E ratio is at 10.15 x FY13E and 9.14 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.29.85 and Rs.33.15 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 21% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.68 x for FY13E and 6.12 x for FY14E. Price to Book Value of the stock is expected to be at 1.98 x and 1.63 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 339 for Medium to Long term investment," says Firstcall Research report.Non-Institutions holding more than 90% 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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