Pratibha Industries: Target Rs. 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
ValuationWe 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.
Review by Anand Rathi
Anandrathi, 4th Floor, Silver Metropolis, Jai Coach Compound, Opposite Bimbisar Nagar, Goregaon(East), Mumbai - 400 063. India
Tel No: + 4001 3700, Fax No: + 4001 3770, Website: www.rathi.com
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
ValuationWe 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.
Review by Anand Rathi
Anandrathi, 4th Floor, Silver Metropolis, Jai Coach Compound, Opposite Bimbisar Nagar, Goregaon(East), Mumbai - 400 063. India
Tel No: + 4001 3700, Fax No: + 4001 3770, Website: www.rathi.com
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