Moneycontrol
Get App
Last Updated : Sep 01, 2017 06:23 PM IST | Source: Moneycontrol.com

Hold Power Mech Projects; target of Rs 578: Reliance Securities

Reliance Securities is bullish on Power Mech Projects has recommended Hold rating on the stock with a target price of Rs 578 in its research report dated August 24, 2017

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Reliance Securities' research report on Power Mech Projects


Power Mech Projects (PMPL) has delivered a healthy performance in 1QFY18 with its consolidated revenue growing by 10.0% YoY to Rs3.58bn owing to continued strong growth in Civil & Other Works segment. However, revenues from Erection Testing & Commissioning (ETC) segment declined by 17.97% YoY to Rs1.44bn due to slowdown in domestic thermal power capacity addition. We believe that dominant position in power EPC business, impressive order book and superior execution capability will drive PMPL’s profitability, going forward.

Outlook

Hence, we change our recommendation to HOLD with an upwardly revised Target Price of Rs 578 (from Rs 565 earlier) based on multiple of 9x P/E of FY19E.

Close

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.



Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Sep 1, 2017 06:23 pm
Sections
Follow us on