Kotak - Unity Infraprojects

Kotak in their report on Unity Infraprojects say

Unity Infraprojects is one of the leading players in the infrastructure segment with its key expertise in civil construction projects. The company has also diversified its presence in irrigation and transportation related projects. With the continued focus of the government on infrastructure development, Unity Infraprojects is expected to benefit from increased order inflows in the civil infrastructure, roads and irrigation segment. With the current order book of Rs.21 bn, we expect Unity Infraprojects's revenues to grow at a CAGR of 42% and profits to grow at a CAGR of 36% over the next two years. At the current price of Rs.465, the stock is trading at 10.3x and 8.3x P/E multiples on FY08 and FY09 estimates, respectively. We recommend a BUY call with a price target of
Rs.636, over a one year time frame, providing an upside of 37% from current levels.