Punj Lloyd Stable operating performance… But reiterate HOLD ::Emkay

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Punj Lloyd

Stable operating performance… But reiterate HOLD

HOLD

CMP: Rs59                                        Target Price: Rs63

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n     Punj reports net profit of Rs0.3 bn – Led by (1) healthy revenue growth at 20% yoy (2) EBITDA margins at +8% for 3rd consecutive quarter and (3) forex gains – above estimates

n     YTD secures Rs103 bn orders – or 88% of FY12E target. Shares encouraging outlook for domestic offshore and international orders

n     Debt rises 10% to Rs51.5 bn; DER up to 1.62X. Arbitrations remain unresolved – over-shadowing stable operating performance of past 3 quarters

n     See no re-rating catalysts. Reiterate Hold rating with price target of Rs63 per share