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Right Direction; Reiterate BUY |
BUY
CMP: Rs465 Target Price: Rs505
n Strong all-round performance – (1) Revenues up 27% yoy to Rs3.8 bn (2) 100 bps yoy expansion in EBITDA margins to 15.8% (3) Net profits up 52% yoy to Rs363 mn
n Continued traction in Engines division – Revenues grew 25% yoy to Rs3.2 bn while EBIT margins improved 50 bps yoy
n Infrastructure division heading towards break-even with 46% yoy revenue growth and EBIT loss at a mere Rs0.4 mn
n Maintain our earnings estimates of Rs30.7 for FY11E and Rs36.1 for FY12E. Reiterate BUY with target price of Rs505/Share (at 14X FY12E earnings)
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