Analysts' Picks: Lanco Infratech
Lanco has emerged as the sole bidder for the 1,320 MW coal-based power plant at Rajpura, Punjab. We expect the tariff of the project to be lucrative, providing healthy upside along with Rs 70 billion EPC potential.
By ET Bureau |
Lanco Infratech
cmp: Rs 145.30
target price: 171
ICICI Securities has maintained its ���buy��� rating on the stock. ���We believe that the expected commissioning of Amarkantak I (300MW) by end-November 2008 would result in reducing execution risk/discount associated with Lanco���s power portfolio,��� said ICICI Securities in a note to its clients. According to ICICI Securities, Lanco���s ongoing litigation with MPSEB to convert Amarkantak I from PPA (power purchase agreement) to merchant is expected to be resolved soon and even 50% conversion will provide upside of Rs 35/share.
���Lanco has emerged as the sole bidder for the 1,320 MW coal-based power plant at Rajpura, Punjab. We expect the tariff of the project to be lucrative, providing healthy upside along with Rs 70 billion EPC potential,��� said the note. The NAV (net asset value) estimates for Lanco stand at Rs 65 billion or Rs 296 per share, the ICICI note said. ���Based on our FY09E, FY10E & FY11E EPS estimates of Rs 16, Rs 19.3 & Rs 26.3, Lanco trades at P/E (price to earning) of 10.7 times, 8.8 times & 6.5 times, respectively,��� the note added.
target price: 171
ICICI Securities has maintained its ���buy��� rating on the stock. ���We believe that the expected commissioning of Amarkantak I (300MW) by end-November 2008 would result in reducing execution risk/discount associated with Lanco���s power portfolio,��� said ICICI Securities in a note to its clients. According to ICICI Securities, Lanco���s ongoing litigation with MPSEB to convert Amarkantak I from PPA (power purchase agreement) to merchant is expected to be resolved soon and even 50% conversion will provide upside of Rs 35/share.
���Lanco has emerged as the sole bidder for the 1,320 MW coal-based power plant at Rajpura, Punjab. We expect the tariff of the project to be lucrative, providing healthy upside along with Rs 70 billion EPC potential,��� said the note. The NAV (net asset value) estimates for Lanco stand at Rs 65 billion or Rs 296 per share, the ICICI note said. ���Based on our FY09E, FY10E & FY11E EPS estimates of Rs 16, Rs 19.3 & Rs 26.3, Lanco trades at P/E (price to earning) of 10.7 times, 8.8 times & 6.5 times, respectively,��� the note added.
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