Gammon
CMP: Rs 550 Target Price Rs 690
Awaiting best……
Q3FY2008 Result Update
Gammon India Limited (GIL) has reported moderate performance for Q3FY2008. The topline grew by 18.8% YoY and was marginally below our expectations.
However there was a bottom-line de-growth of 21.8% YoY and was below our expectations. The company had faced some problems at their North Eastern sites on account of which there was a lower revenue accretion for the said quarter.
Valuation
At the CMP 550, the scrip trades at 36x FY2009E EPS of Rs 15.3 & 23.3x its FY2010E EPS of Rs 23.6. We maintain a Buy on the stock with a SOTP Target Price of Rs 690 which translates into annualized returns of 25.4%.
FINQST
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