Emco
Cluster: Apple Green
Recommendation: Buy
Price target: Rs450
Current market price: Rs421
Healthy order book
At the current market price (CMP) of Rs421 Emco trades at 0.9x EV/order book. Going forward, we expect this trend to continue mainly on account of the huge investment lined up in upgrading the existing power infrastructure as well as in setting up new power facilities. We will review our recommendation and estimates at the time of Q2FY2006 results.
Thermax
Cluster: Emerging Star
Recommendation: Buy
Price target: Under review
Current market price: Rs797
Strong order book
We expect Thermax's earnings to grow at a compounded annual growth rate (CAGR) of 36.8% over FY2005-07, driven by a 20.5% CAGR in the revenues and a modest margin recovery. At the current market price the stock quotes at 1.0x EV/order book. We will review our recommendation and estimates upon receipt of Q2FY2006 results.
Sintex Industries
Cluster: Apple Green
Recommendation: Buy
Price target: Under review
Current market price: Rs690
Raising funds
Sintex Industries, a dominant player in the textiles and plastic businesses, has raised USD50 million (approximately Rs220 crore) through a zero coupon unsecured and un-rated 5-year foreign currency convertible bond (FCCB) issue, with a yield to maturity set at 6.85%..