Angel Broking neutral on Indraprastha Gas, Punj Lloyd
Angel Broking has come out with its research reports on Indraprastha Gas and Punj Lloyd and has maintained a 'Neutral' rating on both the stocks in its November 2013 reports.
November 09, 2013 / 15:24 IST
Angel Broking's research report
Indraprastha Gas (IGL)"IGL has frequently raised prices of CNG and PNG. However, as the proportion of costly gas is expected to increase, we expect the company’s margin growth to remain muted in the years ahead. Further, the proposal to cap gas marketing margin by PNGRB remains an overhang on the stock. The Supreme Court judgment on this issue is awaited. On the valuation front, at the current level, the stock is trading at 11.2x and 10.5x FY2014E and FY2015E earnings, respectively. We maintain our Neutral rating on the stock."Punj Lloyd"Based on 1HFY2014’s operational performance and current order book mix, we are revising our EPS estimates for FY2014 and FY2015 to Rs (0.6) and Rs (0.5) respectively. Punj has been looking to reduce its debt through sale of its non-core assets and replacing Indian debt with foreign debt. However, given the difficult environment we believe these steps would not yield results before the next six to nine months. Further, there is no clarity on the timeframe of recovering various outstanding claims as legal issues such as litigation and arbitration usually are lengthy processes. We continue to remain Neutral on the stock due to headwinds faced by the company."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. 
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