Emkay sees McNally Bharat, TRF, Elecon engineering growth
The India growth story has set the wheels of fortune rolling for the material handling equipment industry.
By INDIATIMES NEWS NETWORK |
MUMBAI: The India growth story has set the wheels of fortune rolling for the material handling equipment industry. The cumulative proposed investment in the industry rests at Rs 1,66,51,00 crore and the total outstanding investment in the economy is a whopping Rs 46,98,000 crore.
Given the positive outlook of the sector, Emkay Stock Broking has initiated its coverage with a ‘buy’ rating on McNally Bharat, TRF and ‘accumulate’ rating on Elecon Engineering.
The report has initiated coverage on McNally Bharat with a buy call. It expects earnings of Rs 9.5 and Rs 17.3 in 2007-08 (Apr-Mar) estimates and 2008-09 estimates respectively.
“The stock trades at attractive valuations of 11.8 times 2008-09 estimates and market cap to order book of 0.3 times. We initiate coverage on the stock with a buy rating and price target of Rs 255,” it says.
The share closed at Rs 203.35, down 3.63 per cent on the BSE.
The brokerage is bullish on the business model of TRF. It feels that higher proportion of fast moving and high margin product business offers resilience to the model and negates impact of volatility in the project business
“We expect earnings of Rs 60.5 and Rs 94.5 in 2007-08 estimates and 2008-09 estimates respectively. The stock trades at attractive valuations of 11.3 times 2008-09 estimates and market cap to order book of 1.1 times. We initiate coverage with a BUY rating and price target of Rs 1500.”
The share closed at Rs 1065, down 0.59 per cent on the BSE.
Emkay expects Elecon Engineering to gain from multiple growth triggers like strong business momentum in material handling division, continued business momentum in IG business and new initiatives of windmill erection and windmill gear box manufacturing.
“We expect earnings of Rs 25.3 and Rs 46.7 in 2007-08 estimates and 2008-09 estimates respectively. Stock trades at attractive valuations of 13.8 times 2008-09 estimates and market cap to order book of 1.7 times. We initiate coverage on the stock with an accumulate rating and price target of Rs 700.”
The share closed at Rs 665.65, up 0.12 per cent on the BSE.
Given the positive outlook of the sector, Emkay Stock Broking has initiated its coverage with a ‘buy’ rating on McNally Bharat, TRF and ‘accumulate’ rating on Elecon Engineering.
The report has initiated coverage on McNally Bharat with a buy call. It expects earnings of Rs 9.5 and Rs 17.3 in 2007-08 (Apr-Mar) estimates and 2008-09 estimates respectively.
“The stock trades at attractive valuations of 11.8 times 2008-09 estimates and market cap to order book of 0.3 times. We initiate coverage on the stock with a buy rating and price target of Rs 255,” it says.
The share closed at Rs 203.35, down 3.63 per cent on the BSE.
The brokerage is bullish on the business model of TRF. It feels that higher proportion of fast moving and high margin product business offers resilience to the model and negates impact of volatility in the project business
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“We expect earnings of Rs 60.5 and Rs 94.5 in 2007-08 estimates and 2008-09 estimates respectively. The stock trades at attractive valuations of 11.3 times 2008-09 estimates and market cap to order book of 1.1 times. We initiate coverage with a BUY rating and price target of Rs 1500.”
The share closed at Rs 1065, down 0.59 per cent on the BSE.
Emkay expects Elecon Engineering to gain from multiple growth triggers like strong business momentum in material handling division, continued business momentum in IG business and new initiatives of windmill erection and windmill gear box manufacturing.
“We expect earnings of Rs 25.3 and Rs 46.7 in 2007-08 estimates and 2008-09 estimates respectively. Stock trades at attractive valuations of 13.8 times 2008-09 estimates and market cap to order book of 1.7 times. We initiate coverage on the stock with an accumulate rating and price target of Rs 700.”
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The share closed at Rs 665.65, up 0.12 per cent on the BSE.
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