Buy Garware Offshore, tgt of Rs 159: India Capital Mkts
India Capital Markets has reiterated its buy rating on Garware Offshore Services with a target price of Rs 159 in its May 06, 2009 research report.
“Garware Offshore Services (GOSL) has reported a substantial growth in consolidated revenue of 91% yoy in Q4FY09 to Rs 503 millon led by addition of new assets and stable day rates. Long tem contracted day rates have restricted the decline in the topline given the falling spot day rates. EBIDTA margins decreased to 40.4% v/s 56.4% in Q4FY08 due to higher other expenditure (dry docking, mobilization cost & forex loss) in quarter. Addition of new assets and firm day rates has enabled GOSL to grow its net profit by 14% on yoy to Rs 73 million.”
“Company’s long term contract looks attractive in the times of declining day rates as they add stability. The company has a high revenue visibility as 40% and 15% of its estimated revenue in FY2010E & FY2011E respectively is committed out of long term contracts. We reiterate our ‘BUY’ rating with a target price of Rs 159,” says India Capital Markets’ report.
source: Moneycontrol
Tags: buy rating, Garware Offshore, India Capital M, indian market
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