HDFC Securities has maintained buy rating on Elecon Engineering, EEL in its December 19, 2007 report. "We believe that the performance of the company going forward is likely to grow at a robust pace, mainly due to the large investment capex lined up by Indian corporates across the industries, which will create a huge demand for the company’s products. EEL, given its expertise and scale, is likely to see brisk order flows augmenting revenue. Initiatives of the company in tapping the growing windmill gear box market and windmills, will also result in further revenue flow. At the CMP of Rs 322, the stock is trading at 22.5x FY2009E EPS and 16.1x its FY2010E EPS. Over the last few years, the stock has got significantly re-rated on the back of robust growth momentum. Thus, with a target P/E of 20x FY10E earnings, we maintain the ‘BUY’ recommendation with and upgraded price target of Rs 400 (an upside of 24.5%)," says HDFC Securities research report.
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Source: Moneycontrol.com
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