Midas: IIFL retains Buy but reduces TP to $0.94 from $1.18, after factoring in order delays, modification of Henan expansion plans and low visibility on fabrication order book, reduce FY11-FY13 earnings estimate by 10-19%.....
Add that China’s medium- to long- term railway spending plan should remain intact and the recent sell-off in the stock presents a buying opportunity. To factor in lower earnings growth of 22% (old - 31%), now value Midas at 16x 1-year forward earnings (old -18x)
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