Karvy Stock Broking maintains ‘buy’ on Nitin Fire Protection
Karvy Stock Broking has maintained a ‘buy’ rating on Nitin Fire Protection even while lowering the target price by 33.60% to Rs 239
By ET Bureau |
CMP: Rs 193.95
Target price: Rs 239
Karvy Stock Broking has maintained a ���buy��� rating on Nitin Fire Protection even while lowering the target price by 33.60% to Rs 239. ���We are downgrading our earnings estimates by 4% and 11.5% for FY09 and FY10, respectively. We expect the company���s fire protection safety and security business to be impacted on account of slowdown in the construction sector and corporate capex plans,��� says a report.
The brokerage has also lowered its revenue estimates from the company���s high pressure cylinder business on account of lower-than-expected capacity utilisation at the Vizag plant. ���We are reducing our sales estimates for the cylinder business by 8.1% and 15% to Rs 1,508 million and Rs 2,036 million for FY09E and FY10E, respectively,��� says the report. On consolidated basis, Karvy has lowered its sales estimates by 5.5% for FY09E and 12.6% for FY10E. It expects the company to report net profits of Rs 402 million (lowered by 4%) and Rs 502 million (lowered by 11.5%) for FY09E and FY10E, respectively.
Target price: Rs 239
Karvy Stock Broking has maintained a ���buy��� rating on Nitin Fire Protection even while lowering the target price by 33.60% to Rs 239. ���We are downgrading our earnings estimates by 4% and 11.5% for FY09 and FY10, respectively. We expect the company���s fire protection safety and security business to be impacted on account of slowdown in the construction sector and corporate capex plans,��� says a report.
The brokerage has also lowered its revenue estimates from the company���s high pressure cylinder business on account of lower-than-expected capacity utilisation at the Vizag plant. ���We are reducing our sales estimates for the cylinder business by 8.1% and 15% to Rs 1,508 million and Rs 2,036 million for FY09E and FY10E, respectively,��� says the report. On consolidated basis, Karvy has lowered its sales estimates by 5.5% for FY09E and 12.6% for FY10E. It expects the company to report net profits of Rs 402 million (lowered by 4%) and Rs 502 million (lowered by 11.5%) for FY09E and FY10E, respectively.
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