Expected improvement in the overall capex cycle augurs well for the company going forward.

Healthy order book of Rs40bn (2.2x FY10 revenue) and robust order pipeline of Rs40bn provides visibility.

We expect revenue to witness a CAGR of 25% (FY10-12E) with stable margins.

At CMP of Rs230, the stock is attractively valued at PER of 8.1x FY12E. We remain positive on the stock and maintain our BUY recommendation with a target price of Rs340 (12x FY12E).