KLG Systel Ltd BUY Target Rs 657
KLG Systel Ltd (KLG) is a life cycle solution provider in areas of product design and engineering, plant design, plant automation, project management & power solutions. KLG’s business model is a blend of industry domain knowledge and core IT/IS technology from industry leading partners. With its Domain expertise, strategic alliance, KLG’s focus on R&D business opportunities for KLG looks positive
KLG has developed an innovative technology wherein units with inbuilt intelligence, monitors & communicates the supply & consumption of power to central data base. KLG anticipates tremendous potential in this product; to an extent of expecting revenue from this segment outmatch its existing total revenue from other segments.
Valuations
KLG currently trades at P/E multiple of 32 & EV/EBIDTA multiple of 15.18 on FY07 earnings.
Valuation Ratios at the CMP on estimated earnings of FY08 & FY09 stands as follows.
With an upward potential of more than 36%, we set a target price of Rs 657, recommending a BUY.
Please find enclosure of KLG Systel Ltd
