Praj Ind an outperformer, tgt Rs 235: Karvy

Karvy has maintained outperformer rating on Praj Industries with target price of Rs 235 in its may 09, 2008 research report. "For Q4FY08 (standalone), Praj reported the marginal revenue increase of 5.5% YoY (QoQ growth of 18%) to Rs 2.12 billion. The revenue was in line with our expectations of Rs 2.19 billion. The company has current order book of Rs 9.5 billion. We have revised our revenue estimates downwards by 9.9% to Rs 10.78 billion and profit estimates upward by 43% to Rs 1.94 in FY09. We have revised operating margin estimates from 14.4% to 18% on back of Q4FY08 results and positive management guidelines. At current market price of Rs 199, the stock is trading at 26.5xFY08 and 20.6xFY09 earnings and EV/EBIDTA it is trading at 22xFY08 and 15.4xFY09. We maintain our valuation at 25xFY09 and revising our target price from Rs 185 to Rs 235 and rate the stock as Out performer (Previous BUY)" according to Karvy report.

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