Hold Reliance Infra for target of Rs 1300 says Firstcall Research
February 11, 2010 by admin
Filed under Brokerage Recommendations
Firstcall Research has come out with a research report on Reliance Infrastructure. The research firm has recommended holding this stock with a target price of Rs 1300 for medium to long term perspective, in its report dated February 10, 2010.
The report says, “At the current market price of the stock Rs 1075, the stock trades at a P/E of 19.82 x and 16.42 x for FY10E and FY11E respectively. The EPS of the stock is expected to be at Rs 54.25 and Rs 65.46 for the earnings of FY10E and FY11E respectively. The topline and bottomline of the company are expected to growth a CAGR of 21.25% and 10.79% respectively over FY08 to FY11E. On the basis of EV/EBDITA, the stock trades at 13.90 x and 13.81 x for FY10E and FY11E respectively. Price to Book Value of the stock is expected to be at 2.06 x for FY10E and 1.83 x for FY11E.”
“The company’s current EPC order book stands at Rs 190 billion. The company expects revenue from EPC to increase substantially over the next two years. The future opportunities in this segment remain strong with 14 projects of Reliance power with a capacity of 32,200mw in the pipeline to be executed over the long-term. The company has over Rs 78 billion of cash & cash equivalents. We recommend hold this stock with a target price of Rs 1300 for medium to long term perspective,” according to Firstcall Research report.
Source: Moneycontrol.
