Angel Broking is bullish on Unity Infraprojects and has recommended buy rating on the stock with a target of Rs 58 in its February 13, 2013 reseach report.
“Unity Infraprojects (UIP) posted better-than-expected numbers on the revenue and operating fronts for 3QFY2013,, which led to a higher-thanexpected growth in earnings. The company secured orders worth Rs1,192cr in 9MFY2013, taking the order book to Rs4,045cr (2.0x trailing revenue) as on date.”
“On the top-line front, UIP reported a growth of 12.6percent yoy to Rs551cr, which was ahead of our estimate by 1.1percent. UIP reported an EBITDA of Rs76cr for the quarter, indicating a growth of 7.9percent yoy. The EBITDA margin stood at 13.9percent, higher than our estimate of 13percent, owing to better execution during the quarter. The PAT increased 13.8percent yoy to Rs28cr (ahead of our estimate) while the PAT margin stood at 5.1percent, a growth of 6bp yoy. This was mainly due to better-than-expected performance at the operating level. The high interest expense, at 7.7percent of revenues, continues to remain a concern.”
“Going forward, given the current order book mix, we estimate UIP to report a revenue and PAT CAGR of 11.5percent and 3.0percent respectively over FY2012-2014. The stock is currently trading at a P/E of 2.8x and 2.5x our FY2013 and FY2014 diluted earnings estimates. We have used the SOTP method to value the stock. We value the construction business at a P/E of 3.5x FY2014 estimated earnings (~30percent discount to larger companies under coverage) and BOT projects on a DCF basis at a CoE of 16percent. We maintain our buy rating on the stock with a SOTP target price of Rs58 per share,” says Angel Broking research report. FIIs holding more than 30% 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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