Financials and Valuations

Earnings

We expect earnings to grow at 44% CAGR over FY08 and FY09.

Orderbook

The company's current order book stands at Rs 1.15 billion. We expect the company to report revenues of Rs 1.4 billion in FY08 and Rs 1.9 billion in FY09.

Operating Margins

The company's operating margins are likely to be 46.8% in FY08 and 49% in FY09.

Profit

The company is expected to report PAT of Rs 42 billion in FY08 and Rs 0.69 billion in FY09.

ROCE

The company's return on capital is expected to be 47% in FY08 and 50% in FY09.

ROE

The return on equity is likely to be 37.7% in FY08 and 38.4% in FY09.

At CMP, the company trades at 18.8x FY08 and 13.4x FY09. We rate the company BUY with a price target of Rs 195.