*

B L Kashyap (KASH IN, INR 30)*

·         Strong revenue visibility with order book of  ~ INR 40 bn which
is
~4.0x its FY10 revenues. Order intake robust for H1FY11 at ~INR 16 bn; BLK
is also trying to enhance its presence in urban infra & airports space to
broad base its future order inflows.

·         Debt levels to reduce from 0.8x currently to 0.7x by FY12E end as
monetization of its realty projects is expected to begin in next couple of
months. EBITDA margins to increase from 8.3% in FY10 to 9% in FY12E as
operating leverage kicks in from strong revenue growth & reducing debt
levels.

·         *At INR 30, KASH trades at P/E of 12.0x and 8.3x for FY11E and
FY12E numbers. We believe there are upside risks to our estimates,
particularly for FY12.
*

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