Buy Patel Engineering, target of Rs 418: Angel

Angel Broking has maintained its buy rating on Patel Engineering Company with 12-month target price of Rs 418 in its July 15, 2008 research report. "Patel Engineering (PE) registered steady growth for the first quarter ended June 2008. Consolidated Sales of the company exceeded our expectations and increased 35% yoy to Rs 558 crore (Rs 415 crore) on the back of a strong order book of Rs 6047 crore."

"At the CMP of Rs 343, the stock is trading at 19x FY2009E and 13.4x FY2010E EPS of Rs 18.0 and Rs 25.5, respectively. However, after factoring the value of Real Estate, the stock is trading at 10x FY2009E and 7.1x FY2010E EPS of Rs18.0 and Rs 25.5, respectively. We maintain Buy on the stock with a 12-month Target Price of Rs 418," says Angel 's research report.