'Bullish on McNally Bharat, target Rs 400'

In a chat with ET Now, Sharmila Joshi, Co-head PCG Sales, Emkay Global Financial Services, talks about the outlook of McNally Bharat.

Does your bullish stance on McNally Bharat remain in light of winning its orders?

Yes. Overall, if you look at the space, we are very comfortable with the kind of order visibility we see in McNally Bharat. Currently, they have bought up a 51.3 billion order book, which is 2.5 times their FY10 estimated sales. They also seem to be moving up the value chain and are getting more of balance of power orders and their largest order was something which did got a couple of months ago. So, these are very good signs for the company. The company has a very strong set of numbers and a strong order book moving of the value chain, and therefore, it should begin to attract better valuations than what it has currently. So, this stock remains the top pick in that space with a target of Rs 400.