Karvy Stock Broking has maintained a 'buy' rating on Nitin Fire ProtectionCMP: RS 193.95
TARGET PRICE: RS 239
Karvy Stock Broking has maintained a 'buy' rating on Nitin Fire Protection even while lowering the target price by 33.60% to Rs 239. "We are downgrading our earnings estimates by 4% and 11.5% for FY09 and FY10, respectively. We expect the company's fire protection safety and security business to be impacted on account of slowdown in the construction sector and corporate capex plans," says a report.
The brokerage has also lowered its revenue estimates from the company's high pressure cylinder business on account of lowerthan-expected capacity utilisation at the Vizag plant. "We are reducing our sales estimates for the cylinder business by 8.1% and 15% to Rs 1,508 million and Rs 2,036 million for FY09E and FY10E, respectively," says the report.
On consolidated basis, Karvy has lowered its sales estimates by 5.5% for FY09E and 12.6% for FY10E. It expects the company to report net profits of Rs 402 million (lowered by 4%) and Rs 502 million (lowered by 11.5%) for FY09E and FY10E, respectively.
Source: Economic Times
