Share Trading Tips

CMP 543

Angel Securities has put out a BUY recommendation on BGR Energy, with a 12-month target price of Rs 641. Angel Sec said that the government’s thrust on the core power sector of the economy has led to power generation targets being bigger than ever, translating into a huge opportunity for BoP (Balance of Plant) players.BGR has a health order book at Rs 11,609 crore (4.2x FY2010E sales), which provides good revenue visibility to the company. During FY2009-12E, we expect the company to register a topline and bottomline CAGR of 41.8% each. At the current price of Rs 505, the stock is quoting at 14.9x and 11x its FY2011E and FY2012E, respectively. Some other broking houses, including Hem Securities have also recommended this stock to buy. Institutional investors are buying heavily. Join them.