CMP: Rs 949.70
Target price: Rs 1,149
Macquarie has maintained an 'outperform' on Patel Engineering after the company announced better-than-expected margins, which made up for marginal disappointment on the topline. "The topline in (third quarter) came in marginally below expectations.
However, EBITDA margins more than made up for the shortfall," said the report, adding, "the company recorded an EBITDA of Rs 592 million (Rs 59.2 crore), up 26% Y-o-Y." According to the brokerage, the company is pre-qualified for Rs 60 billion (Rs 6,000 crore) worth of projects, processing of which is expected in the near term.
The management has indicated that they would bid for orders worth Rs 100 billion over next 12 months, adds the report. The company's order book currently stands at Rs 55 billion (Rs 5,500 crore), 3.4 times trailing 12 months' revenues. The order book number does not include any in-house build-operate-transfer (BO…