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Punj Lloyd bags orders worth `1,461cr
Punj Lloyd has bagged two orders (one international and one domestic) aggregating to
`1,461cr. The first order worth `1,292cr from PTT Public Company, Thailand, involves EPC
and commissioning of onshore gas pipeline. The second order for `169cr from IOCL’s
Paradip Refinery in Orissa involves mechanical and piping work. The expected execution
period for the projects is 20–36 months. This is positive for the company as order inflow
for 2QFY2011 was disappointing at `1,030cr, so this order further enhances the revenue
visibility taking the outstanding order book to `28,526cr (3.1x FY2011E revenue).
The stock has been down (~50%) over the last 12 months, which we believe has brought it
to trough valuations given the company’s scale of operations and the opportunities that lie
ahead. Against this backdrop, we expect the stock to outperform over the medium to long
term. Hence, we maintain Buy on the stock with a Target Price of `153.
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