Punj Lloyd: Buy (The Hindu Business Line 10th Feb 20011)An investment can be considered in the stock of infrastructure company Punj Lloyd. A healthy order-book, qualification to bid for larger and complex orders, and steady profit margins excluding one-off expenses suggest strong earnings prospect for the company. The stock is trading at 20 times its expected consolidated earnings for FY 2009. Investors can consider holding the stock with a 2-3 year perspective to benefit from the extended capabilities arising from the acquisition of Sembawang Engineering & Constructions (Semb E&C). Consider buying in lots to take advantage of any weakness linked to the broad markets. Punj Lloyd’s consolidated earnings for the quarter ended December 2007 disappointed and led to a sharp reversal in the stock. The company’s subsidiary had executed some low-margin legacy orders that resulted in losses of Rs 68 crore being booked due to delays and design changes. The management has stated that the ...
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