Buy Reliance Ind Infra; tgt of Rs 510: Firstcall Research

Firstcall Research is bullish on Reliance Industrial Infrastructure and has recommended buy rating on the stock with a target of Rs 510 in its April 17, 2012 research report.

“Reliance Industrial Infrastructure Limited is a Reliance Group Company. The Company was incorporated in September 1988 as a Public Limited Company in the name of "Chembur Patalganga Pipelines Limited". The Company commenced its commercial operation in March 1992 ant the name of the Company was subsequently changed to "CPPL Limited" in September 1992 and thereafter to its present name viz., "Reliance Industrial Infrastructure Limited" in March 1994.”

“Reliance Industrial Infrastructure Ltd disclosed a phenomenon rise in standalone net profit for the quarter ended December 2011. During the quarter, the profit of the company surged 43.39 % to Rs 62.36 million from Rs 43.49 million in the same quarter previous year. Net sales for the quarter decline to 12.76 % to Rs 157.41 million from Rs 180.44 million, when compared with the prior year period. It reported earnings of Rs.4.13 a share during the quarter, registering 43.39% increase over previous year period. Reliance Industrial Infrastructure Ltd has declared the Dividend of Rs. 3.50 per Equity Share of Rs. 10/- each on the Paid-up Capital of Rs. 15.10 crores. The Company will remain closed from May 30, 2012 to June 05, 2012 for the purpose of Payment of Dividend. The Dividend will be paid / dispatched on July 06, 2012.”

“At the current market price of Rs 444, the stock is trading at 25.66 x FY13E and 23.54 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.17.30 and Rs.18.86 respectively. Net Sales and Operating Profit of the company are expected to grow at a CAGR of 9% and 14 % over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 16.00 x for FY13E and 14.69 x for FY14E. Price to Book Value of the stock is expected to be at 3.00 x and 2.66 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 510 for long term investment,” says Firstcall Research report.  

FIIs holding more than 30% in Indian cos

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