CEBBCO : JHP Securities Initiating Coverage ( Accumulate )

JHP Securities secured an Initiating Coverage on our Client "CEBBCO" (Commercial Engineers & Body Builders Co Ltd) dated 30th June 2012; an "Accumulate" appraisal at current level of Rs. 88. With a one-year time horizon in place, the stock is expected to generate 30.9% returns to reach a price objective of Rs. 115. JHP expects CEBBCO to post a Net Profit CAGR of a phenomenal 60.7% over the next couple of years. owing to its robust topline and bottomline growth for FY'12 to Rs. 4630.6 mn and Rs. 408.1 mn respectively. The rating is based on positive triggers such as increasing capacity by 50% in FBVs and executing orders from Indian Railways for Wagon manufacturing and refurbishment, falling interest rates, removal of mining ban along with GoIs targeted higher spending on Infrastructure projects- all of which are likely to spur the business of CEBBCO and result in the stock's outperformance.

Source : Equity Bulls

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