Sunidhi Securities & Finance has recommended a buy rating on Parekh Aluminex with a target price of Rs 95 in the medium term in its April 24, 2009 research report. “During Q3FY09, sales have gone by 28 per cent to Rs 108 crore whereas net profit has moved up by 13 per cent to Rs 18.1 crore. During the 9 months of FY09, sales have gone up by 46 per cent to Rs 311 crore and net profit by 33% to Rs 27.1 crore. OP & NP margin during the nine months of FY09 stood at 17% and 8.7% respectively against 16.2% and 9.5% (YoY).”
“It has ventured into the new export markets of Greece, USA, South Africa, Dubai and Germany. It has bagged orders from some airlines for the first time including a large order from Air India for the newly developed Teflon coated AFCs. At the current market price of Rs 64, the share is trading at a P/E of 2.3x on FY09E earning and 2.1x on FY10E. We recommend ‘BUY’ with a target price of Rs 95 in the medium term,” says Sunidhi Securities & Finance’s research report.
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