Sell,Patel,Engineering,target, education Sell Patel Engineering; target of Rs 75: KRChoksey
Translation jobs are undertaken by professional translators who are well versed with at least two languages.Translation can work at two levels: inter-state or regional language translation and inter-national or foreign language translation. Some forms of parent involvement with the school such as communications with school, volunteering, attending school events and parent--parent connections appeared to have little effect on student achievement, especially in high school. Helpi
PEL reported revenue of Rs 569 crore (+5.1%, YoY) is below to our expectation, primarily impacted by lower execution on going irrigation projects. EBITDA is flat to Rs 74.8 crore (+1.3%, YoY) and margins fell by 49 bps on YoY on account of increase in construction cost. Interest cost grew to Rs 58 crore (+21%, YoY), shows higher debt utilization for working capital. PAT fell to Rs 3.4 crore (-67%, YoY) impacted by higher tax rate and interest cost.PEL didnt announce any major orders in Q1FY13 as company is facing scarcity of orders due to challenging economic and political environment in the country. We except in the absence of major order inflows PELs profitability will deteriorate more in near future.Chennai Engineering CollegesPEL is waiting for environmental clearances from TN Govt. for 1,050 MW power project and expecting to commence hydro power projects at Arunachal in 2HFY13E. Higher interest cost of Rs 58 crore (+21%, QoQ) hit the bottomline and reveals incremental debt is used to fund the working capital.Engineering GraduationInterest cost of full year Rs 211 crore (+21.61%, YoY) hit the bottom line of the company. Other Income fell to Rs 0.5 crore (-71.3%, YoY) has also impacted the bottomline for the Q1FY13.We revise our estimates to EPS of Rs 7.2 & Rs 8.9 (from Rs 10.8 & Rs 12.1) for FY13E & FY14E respectively. We change our TP to Rs 75 (from Rs 89) and recommend SELL on PEL, based on 1.) no substantial order inflows and large looming debt in the balance sheet 2.) core construction business is facing problems like order inflow, costoverrun, high WC and debt 3.) lower progress on BOT assets like power projects 4.) negative cashflow from parent and huge investment in BOT will deteriorate the balance sheet further, says KRChoksey research report.
Sell,Patel,Engineering,target,