Buy BGR Energy for Rs 826 target: Seshadri Bharathan

In a chat with ET Now, Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd., talks about the outlook of BGR Energy.

Why do you like BGR Energy also as a stock?

I am bullish on capital goods space, and BGR is into power equipment manufacturing and EPC. My sense is that over the next two years, we will see robust order book increase by around $4-5 billion for this company and we will see a sales CAGR growth of more than 45% for this company and ROE of around 33%. The stock currently trades around 17 times the FY12 expected earnings of around Rs 43. Investors can buy into this stock and can hope to reap benefit of investing in this stock. My target price is around Rs 826 for this stock.