MUMBAI:
Kotak Securities has maintained ‘buy’ recommendation on BGR Energy
after the company clarified that it has no dealing with companies involved in
bribe-for-loan scam. However, the brokerage has reduced the price target to Rs
836 per share due to delay in getting new projects.
“The company has clarified that it has no dealings with LICHF and Money Matters Pvt Ltd. BGR Energy has also given the required details of transactions with Bank of India to the investigating authorities.
Though all projects are progressing on schedule, but award of new projects has got delayed a bit. This doesn't have any impact on FY11 or FY12 estimates but may have an impact going forward beyond FY12.
Thus we slightly reduce our one year forward target P/E multiple from 17x given earlier to 16x now. We continue to remain positive on the company and maintain BUY with a price target of Rs 836 (Rs.890 earlier),” the brokerage said.
“The company has clarified that it has no dealings with LICHF and Money Matters Pvt Ltd. BGR Energy has also given the required details of transactions with Bank of India to the investigating authorities.
Though all projects are progressing on schedule, but award of new projects has got delayed a bit. This doesn't have any impact on FY11 or FY12 estimates but may have an impact going forward beyond FY12.
Thus we slightly reduce our one year forward target P/E multiple from 17x given earlier to 16x now. We continue to remain positive on the company and maintain BUY with a price target of Rs 836 (Rs.890 earlier),” the brokerage said.
