Visit http://indiaer.blogspot.com/ for complete details Transformers & Rectifiers |
Order Inflows – a positive |
ACCUMULATE
CMP: Rs380 Target Price: Rs448
n Q2FY11 with (1) 29% growth in revenues yoy & (2) 185% yoy growth (on low base) in order inflows continuing momentum from Q1FY11 signaling a gradual turn
n EBITDA margins (-300bps yoy) little subdued but partly due to employee expenses led by new plant in full swing, expect gradual improvement going forward on increasing volumes
n H1FY11 EPS of Rs14.4/Share; implied H2FY11E EPS of Rs30.4/Share (growth of 22% yoy); Expect Q3FY11E to be better on low base; MOU with MNC for 765kv – positive
n Maintain Earnings; Valuations at 7.1xFY12E EPS - 15% discount to peers; Maintain Accumulate
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