Buy Rajoo Engineers; target of Rs 65.60: Khambatta Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Khambatta Securities' research report on Rajoo Engineers

Rajoo Engineers Limited (REL) reported a strong set of numbers for FY18 led by healthy growth in revenue and earnings, and robust margin expansion. Operating revenue increased 32% to Rs 147 crore in FY18. This was higher than management’s earlier expectation of Rs 125 crore. EBITDA expanded 71% to Rs 21 crore in FY18, aided by a 332 bps rise in EBITDA margin to 14.4%.

Outlook

Based on the scope for growth and expected healthy performance going forward, we value REL at 20x FY19E EPS of Rs 3.28, generating a target price of Rs 65.60. Our price target informs a BUY rating with a potential upside of 20% from current levels.

For all recommendations report, click here

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