Patel Engineering an outperformer, tgt Rs 1028: Macquarie

Patel Engineering an outperformer, tgt Rs 1028: Macquarie

 
 

Macquarie research has maintained outperformer rating on Patel Engineering with target price of Rs 1028 with 12 month prespective, implying upside potential of 34%, in report dated on November 28, 2007. "We have valued PEC using a sum of the parts methodology. Core business has been valued at Rs 502 per share based on 18x average of FY09 and FY10 earnings. To the core business, we have added Rs517 for the real estate business (1.5x NAV of the phase I of development) and Rs 13 per share for the BOT business. We subtract Rs 4 per share for the accumulated taxes on account of withdrawal of 80IA benefits. We have an Outperform rating on the stock. We believe PEC is one of the best plays on the huge opportunity in the hydropower sector with a quality land bank. We transfer coverage of Patel Engineering (PEC) to Inderjeetsingh Bhatia with an Outperform rating and 12-month target of Rs 1028, based on a sum of the parts methodology. This represents 34% upside potential from current levels" according to Macquaire report.