Buy Emco, target of Rs 108: India Capital Markets
India Capital Markets has recommended a buy rating on Emco with a target price of Rs 108 in its July 29, 2009 research report.
“Emco Limited registered a growth of 5.1% in revenues during Q1FY10 to Rs 1926 million as against Rs 1833 million in the same quarter last year. Emco Limited’s Q1FY 10 results were below our expectations in terms of revenue and profitability. We introduce our FY 11 numbers. The current order book position of the company provides decent visibility for the entire current financial year, also the government emphasis on the power sector as a whole will help provide decent revenue and earnings opportunity for the company in the near future and therefore we upgrade our rating and recommend ‘BUY’ rating to the stock with a target price of Rs 108 (9x its FY 11E earnings) i.e. a potential upside of 20% from the current price levels,” says India Capital Markets’ research report.