Hold McNally Bharat Engineering: PINC

PINC research has come out with research report on McNally Bharat Engineering and has maintained hold rating on the stock, as per research report dated  November 07, 2007.

"At the CMP of Rs238, MBEL trades at a P/E of 16.3x and EV/EBITDA of 10x its FY09 estimates. MBEL has improved margins and inducted margin accretive orders. It is targeting newer areas like BOP packages for power plants, civil construction for projects, nuclear power and airport handling equipment, which would give it earnings momentum. Though MBEL is taking a number of initiatives to improve margins and scale, we believe valuations have factored in a large part of the same. Our price target has been achieved and we await clarity on order flows from the new target segments like steel, BOP etc. Thus, we downgrade our recommendation to ‘HOLD’. " According to PINC research report.