Analysts' Picks: DS Kulkarni

DS KULKARNI

CMP: RS 94.20

TARGET PRICE: RS NA

ICICI Securities has reiterated its ���buy��� rating on DS Kulkarni while lowering its net asset value (NAV) estimates , after first quarter results.

���We are lowering DSK���s NAV estimates 58% from Rs 11.2 billion (Rs 512/share) to Rs 5.6 billion (Rs 216/share). Further, we believe that DSK will trade at over 30% discount to its NAV, given the market discount to small-cap property companies and due to company-specific concerns in terms of slower execution and high NAV concentration on a single project (SEZ contributes 64% to NAV),��� the brokerage said in a client note.

���DSK���s earnings growth has slowed down, mainly due to sluggish pick-up in key projects. However, we expect the trend to reverse once the work on multiservices SEZ in Fursangi, Pune picks pace. We expect the company���s revenue and PAT to record CAGR of 25% and 31% over the next three years,��� ICICI Securities said in a client note.