Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Areva T&D India secures orders worth `220cr
Areva T&D India has won a contract for constructing two 765kV sub-stations valued at
`220cr from Bhopal Dhule Transmission Co. Ltd. (subsidiary of Sterlite Technologies Ltd.).
This will refill the order book up to some extent; however, concerns loom as order inflows
have been dismal in the T&D segment. Similar to the previous quarter, we believe that the
company is likely to witness base/low value orders as a bigger portion of order inflows for
the current quarter. This will categorically lead to a dip in order backlog growth, thereby
raising concerns on future visibility. In addition, we also believe the near-term outlook will
be challenging – ordering activity in the T&D space is likely to be muted given the overall
malaise in the T&D space. The stock currently trades at rich valuations of 27.4x and 19.3x
CY2011E and CY2012E EPS, respectively. Given fewer triggers, the stock seems to be
fairly valued and upside from the current level seems limited. Hence, we continue to
remain Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Areva T&D India secures orders worth `220cr
Areva T&D India has won a contract for constructing two 765kV sub-stations valued at
`220cr from Bhopal Dhule Transmission Co. Ltd. (subsidiary of Sterlite Technologies Ltd.).
This will refill the order book up to some extent; however, concerns loom as order inflows
have been dismal in the T&D segment. Similar to the previous quarter, we believe that the
company is likely to witness base/low value orders as a bigger portion of order inflows for
the current quarter. This will categorically lead to a dip in order backlog growth, thereby
raising concerns on future visibility. In addition, we also believe the near-term outlook will
be challenging – ordering activity in the T&D space is likely to be muted given the overall
malaise in the T&D space. The stock currently trades at rich valuations of 27.4x and 19.3x
CY2011E and CY2012E EPS, respectively. Given fewer triggers, the stock seems to be
fairly valued and upside from the current level seems limited. Hence, we continue to
remain Neutral on the stock.
No comments:
Post a Comment