Firstcall Research on Patel Engineering

Firstcall Research on Patel Engineering - Target Rs 500

Firstcall Research has come out with a research report on Patel Engineering. The research firm has recommended buy this stock with a target price of Rs 500 for long term perspective, in its report.

The report says, "At the market price of Rs 422.05, the stock is trading at 16.14 x and 13.04 x for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 6.47 x for FY10E and 6.20 x for FY11E. Price to book value of the company is expected to be at 2.45 x for FY10E and 2.06 x for FY11E respectively. EPS of the company is expected to be at Rs 26.15 and Rs 32.37 for the earnings of FY10E and FY11E respectively. The company's topline and bottomline is expected to grow at a CAGR of 17% and 14% over FY08 to FY11E."

"The company has an order book of Rs 93000 million, including Rs 30000 million of L-1 orders. 47% of order book is from Hydro power projects, 45% is from irrigation and balance from roads and transportation. The company has a strong order book which gives clear visibility for next two years. The strong thrust on infrastructure and irrigation projects has enabled its top line to grow at a healthy pace. We recommend buy this stock with a target price of Rs 500 for long term perspective," according to Firstcall Research report.

Firstcall Research has come out with a research report on Patel Engineering. The research firm has recommended buy this stock with a target price of Rs 500 for long term perspective, in its report

The report says, "At the market price of Rs 422.05, the stock is trading at 16.14 x and 13.04 x for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 6.47 x for FY10E and 6.20 x for FY11E. Price to book value of the company is expected to be at 2.45 x for FY10E and 2.06 x for FY11E respectively. EPS of the company is expected to be at Rs 26.15 and Rs 32.37 for the earnings of FY10E and FY11E respectively. The company's topline and bottomline is expected to grow at a CAGR of 17% and 14% over FY08 to FY11E."

"The company has an order book of Rs 93000 million, including Rs 30000 million of L-1 orders. 47% of order book is from Hydro power projects, 45% is from irrigation and balance from roads and transportation. The company has a strong order book which gives clear visibility for next two years. The strong thrust on infrastructure and irrigation projects has enabled its top line to grow at a healthy pace. We recommend buy this stock with a target price of Rs 500 for long term perspective," according to Firstcall Research report.