Analysts' Picks: Reliance Infrastructure

Reliance Infrastructure
CMP: Rs 1,243
Target price: Rs 1,438

Prabhudas Lilladher has initiated coverage on Reliance Infrastructure with a ���buy��� rating and a price target of Rs 1,438. ���Reliance Infrastructure is in the prequalification and bidding stage for projects worth Rs 1 lakh crore. We have assigned 18% Weighted Average winning probability, which translates into ownership of new assets worth Rs 19,400 crore,��� the brokerage said in a report to clients.

���We expect the company to amass huge EPC (engineering, procurement and construction) projects from the assets under development and those in the pipeline. Based on our assumption of project wins/financial closures and subsequent handover of construction to the EPC division, we expect a CAGR (compounded annual growth rate) of 20% over FY09-12E in the order inflow,��� it said. The brokerage said the outcome of the ongoing RIL-RNRL gas dispute, timely financial closures and EPC awards, would be key triggers for rerating the stock.