Sejal Doshi, CEO of Finquest Securities feels that Gayatri Projects has target of Rs 450. It is a midsize player, having an order book of Rs 35 bn, and order pipeline is also pretty strong. It is available just at 10-11 times its ’09 earnings. Further there is upside on the BOT valuations, because the BOT projects will get executed by March 2009.
Doshi told CNBC-TV18, "We like Gayatri because it is a midsize player, having an order book of Rs 35 billion, and order pipeline is also pretty strong. But we feel that current Rs 35 billion is enough for execution over 24-30 months. So, we are expecting this to be expected over the next two years and we are expecting an EPS somewhere around Rs 37.”
He further added, “If I compare, it is available just at 10-11 times its ’09 earnings. Further there is upside on the BOT valuations, because the BOT projects will get executed by March 2009. So, that is where we see a lot of value unlocking coming because they have already invested Rs 150 crore in BOT projects. So we expect a conservative target of Rs 450, but a rerating in the stock could come up from their BOT valuations. And also in the order pipeline, we feel irrigation would be the major driver as more states get into that drive."
Disclosures: Analyst has been recommending above stocks to their clients. So he may be having some positions on that, and his clients may also be holding the stock.
Source: Moneycontrol.com
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