GVK Power & Infrastructure : Strong Buy Recommendation

by khalid on 10/08/2010 · 1 comment

GVK Power & Infrastructure (GVKPIL) is engaged in infrastructure development in areas of power, airports and roads. Incorporated in 1994, the company till date has invested over Rs 5,000 crore in infrastructure projects. Research group ICICI Direct recommends to STRONG BUY on shares of GVK Power & Infrastructure at present price level of Rs 44.00 for a period of 12 to 15 months.

Recommend Price : Rs 44.00
Target Price : Rs 53.00
Stop Loss : Rs 38.00
Potential Upside : 20%

Q1FY11 results of GVK Power & Infrastructure (GVKPIL) came below the expectations of ICICI Direct due to one off expenses of Rs 11 crore. The management expects these expenses to continue for the next three quarters.

GVK Power & Infrastructure (GVKPIL) is trading at 1.9x FY12E P/BV at CMP of Rs 44. Any favourable ruling for merchant power sale, the fund raising through private equity player in GVK Energy would be key catalyst for the stock in near term. ICICI Drect maintain a Strong Buy recommendation with price target of Rs. 53.

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