Lakshmi Electrical has target of Rs 380: Tater

Lakshmi Electrical Control Systems has target of Rs 380, says Ashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Lakshmi Electrical Control Systems
is right now hovering around Rs 250-260 odd mark. The company charges a depreciation of Rs 20 per share. We have seen what happened to players in the industrial machinery segment and even in the capital goods segment and I think this stock will also not be able to restrain from a similar impact. But what is comforting me is the cash EPS front even if the company is able to maintain its topline growth, that means the company would still be doing somewhere around that 150 mark in terms of topline. On conservative side, if I estimate because of shrinkage of margin and other execution problems, they would still be delivering Rs 28, its 20% less than from last year. But I think with Rs 20 of depreciation plus Rs 28 it gives you a cash EPS of close to Rs 50 on the most conservative estimates."
He further added,