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Overweight on India Infrastructure – Credit Suisse

April 8, 2008

Credit suisse in a report released just a while ago continues to be overweight on Indian Infrastructure and Capital Goods Sector except Power Generation.
It has revisited several companies and has set fresh expectations and Target prices.

The infrastructure spend in India to show good growth, with the company targeting 35% YoY growth for FY08 and FY09. Project finance will not be an issue for public sector plays like NTPC and State Electricity boards. However, among private sector players, companies with good execution skills will have a better probability of putting up capacity.

ABB India – Overweight – Target of Rs 1,700 EPS FY09 – Rs 37.9
BEML – Overweight – Target of Rs 1,368 EPS FY09 – Rs 66.8
BHEL – Overweight – Target of Rs 2,714 EPS FY09 – Rs 95.8
Crompton Greaves – Overweight – Target of Rs 475 EPS FY09 – Rs 12.4
L&T – Overweight – Target of Rs 4,818 EPS FY09 – Rs 99
Punj Lloyd – Overweight – Target of Rs 617 EPS FY09 – Rs 18.6
Siemens India – Overweight – Target of Rs 797 EPS FY09 – Rs 34.3
Thermax – Overweight – Target of Rs 900 EPS FY09 – Rs 38.8
Voltas – Overweight – Target of Rs 238 EPS FY09 – Rs 8.3

CS is neutral on Reliance Energy, Tata Power, CESC and NTPC with target prices of Rs 1,227, 777, 434 and 194 respectively.

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