>> Tuesday, November 18, 2008
According to ICICIdirect.com, KLG Systel has a target of Rs 123 in its November 17, 2008 research report. "KLG Systel reported its Q2FY09 results with net sales of Rs 60.3 crore with Y-o-Y growth of merely 5.6%. The PAT saw a de-growth of 31.2% (Y-o-Y) at a level of Rs 8.64 crore. We believe that company will perform badly in the current fiscal due to its high dependence on ADPRP II scheme for its sales of SG61 & Vidushi whose execution is deferred and poor visibility & poor operational performance of its LCS business."
"On the back of poor visibility of revenue for the current financial year and steep downward revision of guidance by management, we value the company 4.1x its EPS for FY09E, which gives us target price of Rs 123," says ICICIdirect.com's research report.