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Shiv-Vani (Weak order flow to hit growth rates, BUY):
Shiv-Vani Oil & Gas, a leading domestic player in onshore oil & gas exploration, has made aggressive investment to capitalise on the ~US$4bn pa onshore opportunity in India, but new order wins have been rather lean in the current fiscal. While current capacity utilisation levels is close to 100%, we have pared down our revenue growth estimates for FY11-12 to 10-12%. This translates to an 18-26% downgrade in our FY11-12ii earnings estimates. Lower capex assumptions mean leverage should reduce. Also, the current valuation of 7.1x FY11ii EPS remains attractive. We cut our target price to Rs480 (from Rs600) but retain BUY.
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