UBS puts 'buy' rating on Lanco Infratech
It has factored in a 10% discount to power, EPC (engineering, procurement & construction) and infrastructure valuations.
LANCO INFRATECH
RESEARCH: UBS INVESTMENT
RATING: BUY
CMP: Rs 179
UBS Investment has upgraded its rating on Lanco Infratech to ���buy��� , but has reduced the target price by 28% to Rs 250. It has also cut its EPS estimates by 10%/20%/19% to Rs 19/22.4/33.3 for FY09/10/11E to reflect a slowdown in project execution.
It has factored in a 10% discount to power, EPC (engineering, procurement & construction) and infrastructure valuations. The contributions to value are from power (44%), EPC (40%) and real estate (15%).
The stock is trading at 9.5x FY09E EPS, which is a good buying opportunity. The key risks are fuel availability , execution and a further slowdown in the real estate sector.
RESEARCH: UBS INVESTMENT
RATING: BUY
CMP: Rs 179
UBS Investment has upgraded its rating on Lanco Infratech to ���buy��� , but has reduced the target price by 28% to Rs 250. It has also cut its EPS estimates by 10%/20%/19% to Rs 19/22.4/33.3 for FY09/10/11E to reflect a slowdown in project execution.
It has factored in a 10% discount to power, EPC (engineering, procurement & construction) and infrastructure valuations. The contributions to value are from power (44%), EPC (40%) and real estate (15%).
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The stock is trading at 9.5x FY09E EPS, which is a good buying opportunity. The key risks are fuel availability , execution and a further slowdown in the real estate sector.
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