BUY PUNJLLOYDS

-


 
 

BUY PUNJLLOYDS

Punj Lloyd took a hit on its bottom line last quarter due to project delay and cost overrun. However, the markets have reacted more than necessary considering the strong order-book the company enjoys.

 
 

Punj Lloyd's management expects to settle these losses once the projects get over by March-April 2008. In that case, losses may get reversed. Kotak expects blended operating margins to be around 9% in FY08 and expect it to improve to 10.3% in FY09 and 11% by FY10.

 
 

The company's revenues to grow at a CAGR of 39% between FY07-FY10 and profits to grow at a CAGR of 61% between FY07-FY10. At the current price of Rs.401, the stock is trading at 21.1x and 14.9x its P/E multiples on FY09 and FY10 estimates, respectively.

 
 

Sum of the parts Valuation:

Value of core business 576 At 21.5 x FY10 estimated earnings

Value of JV with Ramaprastha grp 14 At 2.5x its book value of investment

 
 

 
 

 
 

 
 

 
 

 
 

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of
Read more
-
https://economictimes.indiatimes.com/markets/stocks/news/companies-trading-at-values-cheaper-than-assets-and-still-have-no-takers/articleshow/71471784.cms
Read more