Commercial Engineers & Body Builders Company Ltd - Confluence of positives, Maintain BUY - Emkay

Reco: BUY
CMP: Rs 96
Target Price: Rs 115

- Q1FY13 results beat estimates on higher-than-anticipated FBV volumes and wagon supplies to railways.

- Running at 100% utilization of expanded capacity despite M&HCV slowdown; re-iterates shifting preference for FBVs.

- Product portfolio diversifying with increasing share of non-tippers, railway wagons and replacement segments.

- Upgrade TP to Rs 115 on higher volume estimates; stock currently trading at 4.9x/4.2x FY13/FY14E EV/EBITDA - BUY.

- Our TP does not build in any benefits from the TRIFAC subsidy (NPV of Rs 22/share).

Source : Equity Bulls

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