 "CLSA downgrades Sintex Ind, cuts target price to Rs 68")
[caption id=“attachment_171876” align=“alignleft” width=“380” caption=“Reuters”]
[/caption]
CLSA has downgraded Sintex Industries to under perform from outperform and has cut target price to Rs 68 from Rs 135 .
“Given the need to conserve cash for the FCCB redemption in end FY13, we expect Sintex to defocus on the capital intensive building products business and cut our earnings estimates by 27-32 percent to reflect this,” CLSA said in a note.
Given the company’s increased focus on working capital and the necessity of timely execution for margins in the monolithic business, the brokerage expects this to lead to a sharp slowdown in Sintex Industries’ business and pressure margins.
STORY CONTINUES BELOW THIS AD
At 10.08 a.m., shares were at Rs 68.65 , up 1.7 percent.
Reuters