Pratibha Industries - Value Pick:: Anand Rathi

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  Pratibha Industries                         Closing 46                                                                                                                          Target   74

Investment Arguments

~ Order book advantage

~ Going the partnership and JV way

~ Financial Strength

~ Execution run rate on track - Over

~ Scheme of Arrangement – A good move

~ Improving Industry Outlook

  

~Valuation

We are positive on Pratibha Industries owing to its sturdy order book with visibility for next 2-3 years. Firm footage in executing various water related projects and any positive trigger from the scheme of arrangement leads to attractive valuations. Currently the stocks trades at 5.7x and 4.8x its FY12 and FY13 earnings respectively. We see a price target of Rs. 74 for a 2 year time horizon.