Buy NESCO; target Rs 845: Firstcall Research
Brokerage house Firstcall Research is bullish on NESCO and has recommended buy rating on the stock with a target price of Rs 845 in its June 19, 2013 research report.
June 20, 2013 / 12:03 IST
Firstcall Research report on NESCO
"NESCO's net profit jumps to Rs.239.69 million against Rs.223.98 million in the corresponding quarter ending of previous year, an increase of 7.01 percent. Revenue for the quarter rose 8.29 percent to Rs.431.09 million from Rs.398.10 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.17.01 a share during the quarter, registering 7.01 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.359.29 millions as against Rs.336.45 millions in the corresponding period of the previous year.""Outlook and Conclusion: At the current market price of Rs.774.00, the stock P/E ratio is at 12.17 x FY14E and 11.42 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.63.61 and Rs.67.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 10 percent and 12 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 8.23 x for FY14E and 7.63 x for FY15E. Price to Book Value of the stock is expected to be at 2.43 x and 2.00 x respectively for FY14E and FY15E.""The Company is plan to investing in construction of a new building and other capital expenditure to set up a Research and Development Centre for Indabrator, its Industrial Capital Goods Division. Construction of this new building is progressing well, besides several new equipment and facilities will also be installed. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 845 for Medium to Long term investment," says Firstcall Research report.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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
