Citigroup Global Markets downgrades Punj Lloyd to 'hold'
Citigroup Global Markets has downgraded its rating on Punj Lloyd from buy to ‘hold’, cut earnings forecast, and lowered price target to Rs 142 from Rs 218 earlier. “Punj Lloyd is attempting a transformation into a successful global EPC player.
By ET Bureau |
Punj Lloyd
cmp: Rs 113.65
target price: Rs 142
Citigroup Global Markets has downgraded its rating on Punj Lloyd from buy to ���hold���, cut earnings forecast, and lowered price target to Rs 142 from Rs 218 earlier. ���Punj Lloyd is attempting a transformation into a successful global EPC player.
However, it is a fact that transforming a small-, or mid-sized, company into a larger company happens during extended periods of robust economic growth. In a slow-down, mid-sized companies have a comparatively difficult time accessing capital,��� a Citigroup note to clients said. ���Contractual disputes do not help the case ��� Punj Lloyd has a history of contractual disputes with clients ��� (IOCL, PIL, GAIL, Petronet, Spie Capag Petrofac, and SABIC).
Punj Lloyd���s balance sheet has Rs 275 crore of auditor qualifications. Around 66% of the backlog is from oil & gas (a worry in a depressed oil price scenario),��� the note added.
cmp: Rs 113.65
target price: Rs 142
Citigroup Global Markets has downgraded its rating on Punj Lloyd from buy to ���hold���, cut earnings forecast, and lowered price target to Rs 142 from Rs 218 earlier. ���Punj Lloyd is attempting a transformation into a successful global EPC player.
However, it is a fact that transforming a small-, or mid-sized, company into a larger company happens during extended periods of robust economic growth. In a slow-down, mid-sized companies have a comparatively difficult time accessing capital,��� a Citigroup note to clients said. ���Contractual disputes do not help the case ��� Punj Lloyd has a history of contractual disputes with clients ��� (IOCL, PIL, GAIL, Petronet, Spie Capag Petrofac, and SABIC).
Punj Lloyd���s balance sheet has Rs 275 crore of auditor qualifications. Around 66% of the backlog is from oil & gas (a worry in a depressed oil price scenario),��� the note added.
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